Alabama Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Alabama Sales or Use Tax Applicable to Registration

 

Ad Valorem tax is based on local millage rates and assessed values. All private passenger automobiles and pickup trucks are assessed at 15% of the market value. All other vehicles are assessed at 20% of the market value. Taxes are paid in the county where the owner resides. Tax must be paid prior to registration. Motor vehicles brought into the state during any tax year shall be subject to taxation the same. Transfer cannot be accomplished without proof of tax being paid. Sales tax on new and used vehicle 2% (plus local tax). CREDIT allowed to TRADE-IN. CREDIT allowed for taxes paid to another state. MILITARY PERSONNEL are NOT EXEMPT. Sales tax is paid to the Alabama dealer. If acquired out-of-state or from a non-dealer, sales or use tax is paid to the Tax Collector, License Commissioner, or Revenue Commissioner of the county of residency of owner. Alabama has reciprocity with all U.S. jurisdictions, none with the Canadian providences. NOTE: The State General Sales Tax Rate is 4% (including vehicle parts). When a customer receives more than one vehicle on an even trade, and no money changes hands, sales tax is not due. The registrant will be required to prove to the satisfaction of the county license plate issuing official that the transaction was an even trade.