Ala. Admin. Code r. 810-6-3-.42.03
Current through Register Vol. 42, No. 8, May 31, 2024
Section 810-6-3-.42.03 - Sales Of Certain Automotive Vehicles To Nonresidents For First Use And Registration Or Titling Outside Alabama(1)(a) Effective January 1, 2016, sales of automobiles, motorcycles, trucks, truck trailers, or semitrailers that will be registered or titled outside Alabama, that are exported or removed from Alabama within 72 hours by the purchaser or purchaser's agent for first use outside Alabama are not subject to Alabama sales tax provided the following conditions are met: 1. the state sales tax laws of the state in which the purchaser will title or register the vehicle allows an Alabama resident to purchase a motor vehicle for first titling and registering in Alabama without the payment of tax to that state.2. The exempt sale is documented on the Automotive Vehicle Drive Out Certificate For Nonresidents.(b) Effective July 1, 2022, sales of travel trailers, campers, or housecars that are exported or removed from Alabama within 72 hours by the purchaser or purchaser's agent for first use outside Alabama are not subject to Alabama sales tax provided that the conditions in 1. and 2. above are met and the following additional documentation is collected and retained:1. Copy of sales invoice.2. Copy of the purchaser's valid state-issued identification card, state-issued driver's license, U.S. passport, or for entities, a copy of the same for the individual signing for the purchase. An entity must also provide a copy of the same for a member of an LLC or a member of the board of directors for a corporation as well as the location the travel trailer, camper, or housecar will be housed upon export from Alabama.(2) The certificate must be executed by both the seller and the purchaser or the purchaser's agent at the time of the sale. A certificate executed subsequent to the time of the sale shall be invalid and the Alabama sales tax shall be due from the seller on the sale for which the invalidated certificate was prepared.(3) The certificate, properly completed, must be retained in the seller's records with a copy of the corresponding sales invoice, and when applicable, the additional documentation required in subparagraph (1)(b). The certificate and documents shall be available for inspection or examination by the department or any authorized agent during normal business hours. The seller will be liable for the Alabama sales tax on any sale for which the export exemption has been claimed but for which a properly executed certificate and sales invoice, and when applicable, additional documentation required in subparagraph (1)(b) are not maintained in the seller's records.(4) A Certificate of Exemption - Out of State Delivery is not required for sales which qualify for the export exemption contained in Section 40-23-2(4) and for which the certificate is properly executed and maintained.(5) Sales of other vehicles such as mobile homes, all terrain vehicles, and boats do not qualify for the export exemption provision and are taxable unless the seller can provide factual evidence that the vehicle was delivered outside Alabama or to a common carrier for transportation outside Alabama.(6) In the event the laws of the state in which the purchaser will title or register the vehicle do not 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 sale of the automotive vehicle to the nonresident will be subject to the Alabama state automotive sales tax rate. The tax collected will be state tax and will exclude county and municipal sales tax.(7) A list of states that do not allow a reciprocal drive-out provision for Alabama residents purchasing automotive vehicles for first titling and registration in Alabama may be viewed on the Department's website at: http://www.revenue.alabama.gov/salestax/. Such list will be updated annually. Sellers that have relied on list information that is later determined to be incorrect shall not be held liable for the non-collection of the state automotive sales tax.Ala. Admin. Code r. 810-6-3-.42.03
Effective January 24, 1989.Amended by Alabama Administrative Monthly Volume XXXIV, Issue No. 04, January 29, 2016, eff. 2/10/2016.Amended by Alabama Administrative Monthly Volume XL, Issue No. 12, September 30, 2022, eff. 11/14/2022.Authors: Ginger Buchanan, Christy Vandevender
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a) ((5), 40-23-2(4), 40-23-31.