Alabama – New Annual Exemption Certificate Guidance For Statutory Exemptions Effective August 19, 2015

SALT Report 3728 – Pursuant to Legislative Act 2015-534 all persons or companies which have a statutory exemption from the payment of Alabama sales, use or lodgings tax must annually obtain a certificate of exemption (Form STE-1) from the Department of Revenue regardless of the type of transaction or whether the property is subject to sales or use tax.  The act was effective August 19, 2015 and becomes operative January 1, 2016. On January 1, 2016 vendors will be required to have the certificate on file in order to make tax exempt sales to companies or entities subject to the provisions of the Act.

Certificates will be valid for one year from the date of issuance and shall be renewed annually each subsequent year.

Buyers and Sellers should be aware:

“Any person or company who fails to obtain a certificate prior to January 1, 2016, or who fails to renew a certificate of exemption prior to its expiration will no longer be allowed to make tax exempt purchases or rent tax exempt accommodations.”                                                                                          

For further Information:

http://revenue.alabama.gov/salestax/Required_Statutory_Exemption_Certificates_20150908.pdf