Ala. Admin. Code r. 810-6-3-.76 - Property Purchased For Export And Sales Tax Refunds On Certain Purchases Of Tangible Personal Property In Alabama For Export To And Use In A Foreign Country
(1) The
definitions set forth in Code of Ala. 1975, Section
40-23-1(a),
are incorporated herein by reference.
(2) Sales are not subject to Alabama sales
tax when the sales agreement requires the seller or the seller's agent to
deliver the purchased property to the Port of Mobile marked for export and, in
fact, delivery is made to the Port of Mobile and the property is exported.
(Sections
40-23-39.
Juan Hernades, Carribean Shipping, Inc. V. State of Alabama (Admin. Law Div.
Docket No. S. 05-708 Final Order entered December 7, 2005)
(3) Alabama sales tax applies to sales of
tangible personal property when the purchaser or the purchaser's agent takes
delivery in Alabama for subsequent export and use of that property in a foreign
country unless the following criteria are met:
(a) the purchaser's records reflect that it
was the intent of the purchaser to use the property in a foreign country at the
time of purchase and that, in fact, the property was exported from Alabama, and
when ocean transportation is required and scheduled service to the desired port
overseas is available through the port of Mobile, the Port of Mobile is used
for shipment, and
(b) the purchaser
provides to the vendor a duly executed Certificate of Exemption - Merchandise
Purchased for Export to a Foreign Country (Form STE-4)
(4) Purchasers who are entitled to make
qualifying purchases at wholesale, tax free, shall obtain a sales and use tax
Certificate of Exemption - Merchandise Purchased for Export to a Foreign
Country (Form STE-4), by making application on a form provided by the
Department. When the properly completed application is received and approved by
the Department, the applicant will be issued a state sales and use tax
Certificate of Exemption - Merchandise Purchased for Export to a Foreign
Country (Form STE-4), which may be copied, completed, and provided to vendors
as documentation for tax-exempt purchases for export. The Form STE-4 may be
used only by the person to whom it is issued.
(a) Certificate holders regularly engaged in
making tax-exempt purchases of the kind and nature for which the Form STE-4 has
been issued may furnish a properly executed certificate to the seller
specifying that all tangible personal property subsequently purchased will be
for the purpose shown on the certificate and thus be relieved of the burden of
executing a separate certificate for each individual tax-exempt purchase as
long as there is no change in the character of their operations and the
purchaser's intent is to export the tangible personal property being
purchased.
(b) Certificate holders
must maintain a list of all vendors to whom they furnish a copy of their
exemption certificate. This list should be retained in their records available
for inspection by the Department during regular business hours and should
provide the name, address, and type of business of each vendor to whom a copy
of the certificate has been furnished.
(c) Certificate holders must return their
certificate to the Department if the business ceases export activity.
(d) Certificate holders must notify the
Department immediately in writing of any change in name or address.
(e) The burden of proof that a sale is exempt
is upon the person making the sale unless the seller takes from the purchaser a
properly executed Form STE-4. Any such sale for which an exemption has been
claimed but which is not supported by a Form STE-4 may be deemed a sale at
retail by the Department and the seller held liable for the tax
thereon.
(f) Any person selling
tangible personal property tax free who relies on a properly executed Form
STE-4 shall not be held liable for sales or use tax subsequently determined by
the Department to be due on the sale for which the certificate was received.
Instead, the Department will assess and collect the tax, along with applicable
penalties and interest from the parties who made the illegal tax-free purchase
with the Form STE-4 and the person or persons who benefited from the illegal
use of the Form STE-4. (Sections
40-23-120 and
40-23-121)
(g) The state sales and use tax
certificate of exemption for property purchased for export (Form STE-4) is the
only exemption certificate or exemption number which relieves the seller, when
acting in good faith and exercising reasonable care, of liability for any sales
or use tax later determined by the Department to be due on a sale for which an
exemption for export was originally claimed. (Section
40-23-39(a))
(5) With respect to
purchases which qualify for the exemption outlined in paragraph (3), in the
absence of the purchaser providing the properly executed Form STE-4, the seller
at retail must collect and remit sales tax to the Department and then, when the
purchaser documents to the Department that the purchases qualify for the
exemption, the purchaser may obtain a refund of the sales tax paid
thereon.
(6) Refunds of sales taxes
made pursuant to paragraphs (3) and (5) shall be made in accordance with the
procedures outlined in Section
40-2A-7(c),
Code of Ala. 1975, including the joint petition
requirement contained in Section
40-2A-7(c)(1).
(7) The purchase of a new truck with a gross
weight not exceeding 8,000 pounds or a new passenger vehicle by a nonresident
of the United States is exempt from sales or use tax when (i) the truck or
passenger vehicle is manufactured in Alabama, (ii) the truck or passenger
vehicle is delivered to the purchaser in Alabama by the manufacturer or an
affiliated corporation, (iii) at the time of purchase the purchaser intends to
export the truck or passenger vehicle to and permanently license the truck or
passenger vehicle in a foreign country within 90 days after the date of
delivery, and (iv) the purchaser obtains a temporary metal license plate and a
temporary registration certificate from the probate judge or license
commissioner of the county in which the manufacturer is located.
Notes
Author: Ginger Buchanan
Statutory Authority: Code of Ala. 1975, ยงยง 40-2A-7(a)(5), 40-23-4(a)(17), 40-23-31, 40-23-39, 40-23-69(2), 40-23-83.
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