Alabama – Appeals Court Reverses Lower Court Ruling Trucking Company Denied Common Carrier Exemption

SALT Report 3235 – On January 17, 2014, the Alabama Court of Civil Appeals reversed the Houston Trial Court decision to allow a refund of sales tax in the amount of $965,596.79.  The trucking company had paid the 2% sales tax on over one thousand tractors/trucks destined for out of state terminals.  The sales of the trucks were considered to have taken place within Alabama, and therefore taxable regardless of subsequent use and IRP tag registration for multistate apportionment.

“…the sale of the tractors had been made by an Alabama retailer to an Alabama trucking company…the tractors had been delivered to the Alabama purchaser in Alabama…the vehicles had been titled in Alabama… no drive-out certificates had been executed. “

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Alabama Department of Revenue v. AAA COOPER TRANSPORTATION AND ACTION TRUCK CENTER, INC.