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City of Huntsville, AL
  
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Finance Department - Tax Rates




























Effective March 1, 2014, the City of Huntsville GENERAL SALES & USE TAX RATE increased from 3.5 percent (3.5%) to 4.5 percent (4.5%).

Tax Type                                   Rate
Sales & Use
General……………………………. 4.50%
Automotive………………………… 1.75%
Rental and Leasing
General…………………………… 3.00%
Automotive……………………….. 1.50%
Lodgings
General…………………………... 7.00%
Surcharge……………………….. $1 per room per night
Gasoline…………………………. .01 per gallon
Liquor……………………………… 12.00%
Tobacco
Per Package……………………. $.10
Per Cigar…………………………. $.03
Wholesale Wine……………….. $.07 per liter

Sales Tax Rates
General 4.50%
Automotive 1.75%

Sales Tax is imposed on the retail sale of tangible personal property in Huntsville. Sales tax is collected by the seller from their customer and remitted directly to the City of Huntsville. All persons or businesses that sell tangible personal property at retail must collect tax and make payments to the City. It is unlawful for the seller to keep any portion of sales tax collected from customers.

It is the TAXPAYER'S RESPONSIBILITY (in the case of retail sales, it is the SELLER'S RESPONSIBILITY) to determine whether a transaction occurs in Huntsville.

In order to assist Huntsville businesses in determining whether their customers are located inside the city limits, please refer to the Huntsville Address Locator, which is a current listing of all addresses inside Huntsville. For locations not having a postal address (such as new real estate developments), you should contact the City Planning Department for assistance at (256) 427-5100.

IMPORTANT NOTE: U.S. Post Office addresses do not indicate Huntsville's geographic boundaries.

Automotive Vehicle Dealers Automotive vehicle dealers are required to collect sales tax on the sale of all vehicles in the city. This does not apply to vehicles delivered outside Huntsville, "delivery" being defined by Alabama law. If a dealer delivers a vehicle outside Huntsville, the dealer is required to complete the State's "Certificate of Exemption - Out of State/City/County Delivery" ("State Form") for the sale to be exempt, which is available from the Alabama Department of Revenue.

The matter of delivery outside of Huntsville is complex and must comply with Alabama law concerning what constitutes delivery and passage of title. The DEALER IS RESPONSIBLE for determining whether a delivery location is inside or outside the city, and may refer to the Huntsville Address Locator for reference.

For the exemption to be accepted by the city, the dealer must submit the original or copy of all State Forms executed for the tax reporting period with the tax return for the period.

IMPORTANT NOTE: The State Form does not apply to sales to individuals or businesses having a Huntsville address according to the then applicable Huntsville Address Locator, regardless of the point of delivery. If such a sales is claimed as exempt by a dealer and the city discovers such, AND the city discovers the Madison County License Director did not collect the city sales tax from the buyer upon registration of the vehicle, the city will assess the sales tax on the sale to the dealer, plus a penalty for failure to pay the tax timely.

Also, if the city discovers from the buyer that the vehicle was not delivered outside the city, contrary to the State Form, the city will assess the sales tax on the sale to the dealer, plus a penalty for failure to pay the tax timely.

The city will assess sales tax on the sale to the buyer if the city finds the dealer properly exempted the sale but for other reasons finds the buyer owes the tax.



Consumer's Use Tax Rates
General 4.50%
Automotive 1.75%

Consumer's Use Tax is imposed on the storage, use or consumption of tangible personal property in Huntsville at the same rate as Sales Tax.

Consumer's Use Tax becomes due when the user and consumer of taxable goods does not pay tax to the seller, or pays tax to a seller that is not registered to collect City of Huntsville tax. Use tax is due on purchases made by Huntsville residents and businesses from another city or state which are not taxed. Generally, if you would be required to pay sales tax on goods purchased inside Huntsville, but you purchase them outside Huntsville and do not pay local sales tax, you are probably subject to use tax and must report and pay it to the city.

You are strongly encouraged to consult with your advisors or ask city representatives about how use tax applies to your activities.

Businesses Providing Services Many businesses primarily sell services, not merchandise to their customers, such as health care and dental professionals, attorneys, accountants, engineers, appraisers, software consultants, U.S. Government contractors, architects, and real estate agents. Although you may not be required to collect sales tax, it is very likely you are required to pay city use tax on materials, supplies, computer equipment, and other property used in your business, whether provided to your customers or not.



Rental Tax Rates
Rental and Leasing Privilege License Fee
General 3.00%
Automotive 1.50%

Rental Tax is levied on businesses engaged in renting tangible personal property. Rental tax should be remitted by the lessor on the gross receipt of rental transactions, including rental tax invoiced.

Important Note: Rental tax is levied on personal property, not real property.



Lodging Tax Rates
Lodgings Privilege License Fee
General 7.00%
Surcharge $1 per room per night

Lodgings Tax is imposed on all persons who operate any hotel, motel, rooming house, lodge or other place where accommodations are made available to travelers, tourists or transients. Charges for rooms, lodgings or accommodations provided for a period of 180 consecutive days or more in the same place are exempt from Huntsville tax.

Effective July 1, 2013, the City of Huntsville LODGING TAX RATE will increase from six percent (6%) to seven percent (7%). You must begin charging 7% tax on July 1, 2013 for tax returns due on or before August 20, 2013. There has been NO change in the $1.00 surcharge per room per night.



Gasoline Tax Rate
Gasoline Privilege License Fee $.01 per gallon

Gasoline Tax is imposed on every distributor or seller of gasoline or motor fuel sold or delivered in Huntsville.

Gasoline tax cannot be filed electronically through the Alabama Department of Revenue website. A paper return must be completed and mailed directly to the City along with payment.
Gasoline Form



Liquor Tax Rate
Liquor Privilege License Fee 12.00%

Liquor Taxis due from businesses, including private clubs, which sell liquor or alcoholic drinks containing liquor. Liquor Tax must be paid by the business on ALL ingredients of the drink. NOTE: The business must also charge their customers Sales Tax on the sale of such drinks.

Liquor tax does NOT apply to any privately owned retail liquor store or any liquor store operated by the state alcoholic beverage control board.

Liquor tax cannot be filed electronically through the Alabama Department of Revenue website. A paper return must be completed and mailed directly to the City along with payment
Liquor Tax Form





Tobacco Tax Rate
$.10 per package
$.03 per cigar

Tobacco Tax is imposed on the sale or distribution of tobacco products within Huntsville city limits. Tax for cigarettes is paid by revenue stamp while tax for cigars, cigarillos, smoking tobacco, chewing tobacco and snuff is paid by filing a tax return. Tobacco tax cannot be filed electronically through the Alabama Department of Revenue website. A paper return must be completed and mailed directly to the City along with payment.
Tobacco Tax Form | Cigarette Stamp Order Form



Wholesale Wine Tax Rate
$.07 per liter

Wine Tax is levied by the State of Alabama and is to be paid directly to the City of Huntsville by wholesale wine dealers.

Wine tax cannot be filed electronically through the Alabama Department of Revenue website. A paper return must be completed and mailed directly to the City along with payment.
Wine Tax Form




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