Aug 14

ALABAMA – Out-of-State Sales of Vehicles Subject to Sales Tax Jan 2016

Legislation has been enacted which provides that sales of automobiles, motorcycles, trucks, truck trailers, or semitrailers, excluding vehicle campers or house cars, that will be registered or titled outside Alabama and exported or removed from Alabama within 72 hours by the purchaser or his or her agent for first use outside Alabama are subject to Alabama sales tax (previously, such sales of automobiles, motorcycles, trucks, truck trailers, or semitrailers were not subject to sales tax). The tax will be imposed in an amount equal to only the state automotive sales tax rate, unless the sales tax laws of the state in which the purchaser will title or register the vehicle allow an Alabama resident to purchase a motor vehicle for first titling and registering in Alabama without the payment of tax to that state. The tax collected under this export provision will be Alabama sales tax and will exclude county and municipal sales tax. On January 1, 2016, and each January 1 thereafter, the Alabama Department of Revenue is required to publish on its website a list of states that do not allow drive-out provisions to Alabama residents. If the taxpayer relies on this list and it is incorrect, the taxpayer will be relieved from the liability concerning the miscollection of the state automotive sales tax.

Act 503 (H.B. 25b), First Special Session, Laws 2015, effective January 1, 2016