Overview
The Alabama Department of Revenue has repealed and replaced Rule 810-6-3-.03.02, titled:
Automotive Vehicles, Certificate of Exemption – Out-of-State/City/County Delivery Form.
Key Provisions of the New Rule
When a dealer sells any of the following vehicles:
- Automobile
- Motorcycle
- Truck
- Truck Trailer
- Travel Trailer
- Camper
- Housecar
- Semitrailer
And delivers the vehicle outside of Alabama, or outside the city and/or county in which the dealer is located, a portion of the sales tax due may be exempt.
Requirements for Sales Tax Exemption
Any claim for sales tax exemption based on the delivery location must meet the following requirements:
- Affidavit of the Dealer and Buyer
- Affidavit of the Person Making Delivery
These affidavits must verify the delivery of the:
- Vehicle
- Trailer
- Camper
- Housecar
- Semitrailer
Required Documentation
The affidavits must be completed and recorded on the official form titled:
“Certificate of Exemption-Out of State/City/County Delivery”
provided by the Alabama Department of Revenue.
Note: This form serves as the official documentation supporting the exemption from applicable state, city, or county sales tax.
Frequently Asked Questions
What is the purpose of the new Alabama Department of Revenue rule regarding vehicle deliveries?
The revised rule clarifies how automotive dealers can claim partial sales tax exemptions when delivering vehicles outside the state or their local jurisdiction. It provides updated requirements and official documentation for substantiating such exemptions.
Which types of vehicles are covered under this sales tax exemption rule?
The rule applies to sales of automobiles, motorcycles, trucks, truck trailers, travel trailers, campers, housecars, and semitrailers, provided they are delivered outside Alabama or the dealer’s city or county.
What documentation is required to qualify for the exemption?
Dealers must submit two affidavits: one from the dealer and buyer, and another from the person making the delivery. These must be recorded on the official “Certificate of Exemption-Out of State/City/County Delivery” form provided by the Alabama Department of Revenue.
Is the sales tax exemption automatic when a vehicle is delivered out of state?
No, the exemption is not automatic. Dealers must meet all documentation and affidavit requirements to qualify for the exemption. Failing to provide proper proof can result in the tax being due.
Can a dealer claim a full exemption from all taxes for out-of-state deliveries?
Not necessarily. The rule allows for partial exemption from applicable state, city, or county sales tax depending on the delivery location and compliance with the required documentation process.