Consumer’s Use Tax
For Businesses Located in Alabaster
Use tax is the counterpart of sales tax. Alabaster use tax applies to all tangible personal property purchased at retail that is used, stored or consumed in Alabaster, on which the vendor did not collect Alabaster tax at the time of purchase. The liability for use tax falls on the purchaser. If the vendor did not collect the City of Alabaster tax at the time of purchase, it is the responsibility of the purchaser to report and pay the tax due.
On purchases made outside Alabaster but shipped or delivered into Alabaster, the vendor may not charge the full rate of tax. All purchase invoices should be checked for compliance with the sales and use tax laws. The collective general rate of tax is 10% (State= 4%, Shelby County= 1%, and the City of Alabaster= 5%). If the vendor did not charge the City of Alabaster tax, the business will be required to pay the tax directly to the City of Alabaster.
If purchases are made in the City of Alabaster, the vendor should add 10% sales tax to the invoice and collect the tax at the time of purchase, unless the purchase is specifically exempt by law. 5% of that sales tax collected shall be directed to the City of Alabaster.
It is the business' responsibility to check all purchase invoices for compliance with the sales and use tax laws.
Consumer's use tax does apply to purchases made via telephone, mail order, the Internet, etc. The vendor does not usually collect the City of Alabaster tax on these purchases. Therefore, it is the consumer's responsibility to remit these taxes.
There are certain exemptions from the use tax law. If there is a question on exemption from the use tax, please inquire.
Use tax returns and the remittance of any tax due to the City of Alabaster must be filed with the City of Alabaster.
Please inquire for additional information regarding consumer's use tax. The above is a very brief overview, and more information may be required for a particular type of business transaction.