TAX & LICENSE
ALABAMA TAX STRUCTURE
State Income Tax
Alabama imposes a state income tax on a graduated scale that varies with your income level and your filing status. This tax is also adjusted for applicable credits and exemptions. The tax rates in Alabama range from 2 percent to 5 percent, but the income levels they are applied to vary with your filing status. For complete information on Alabama income tax, contact the Alabama Department of Revenue or consult one of the regional Tax Service Centers:
Alabama Department of Revenue
Individual and Corporate Tax Division
334-242-1170
www.ador.state.al.us
Sales & Use Taxes
Sales tax is a tax imposed on the retail sale of tangible personal property sold in Alabama by businesses located in Alabama. The general tax is 4 percent and collected by the seller from each customer. All sales of tangible personal property are retail sales except those defined as wholesale sales. In addition to the state sales tax, more than 200 cities and counties levy sales taxes. The state offers a Sales Tax Holiday just before school opens at the end of each summer that allows consumers to purchase school supplies including clothing and computers free of state sales or use tax. Local taxes may still apply. Use taxes are paid directly by consumers to the state government on items that have been purchased outside of Alabama such as catalog or Internet sales that have not been taxed. These taxes are due monthly to include the recent month's purchases. However, a taxpayer may file and pay state use tax quarterly when the total state use tax averaged less than $200 per month during the preceding calendar year. For more information, contact:
Alabama Department of Revenue
Sales, Use & Business Tax
General Information
334-242-1490
Paperless Filing
866-576-6531
www.ador.state.al.us/salestax/index.html
Property Taxes
Property or ad valorem taxes are imposed on real and/or business personal property. Real property includes land and improvements, while business property refers to furniture, fixtures, tools, and equipment used in the operation of a business including airplanes. Many new property owners rely on the title company, real estate agent, or other representative to properly record their deed and assess their property. Immediately after recording your deed, file an assessment return with the Assessing Division.
The Homestead Exemption may apply to property owners who own a single-family residence and occupy it on the first day of the tax year for which they are applying. In Alabama, the property tax payment is determined by multiplying the appropriate millage rate by assessed value minus the proper exemptions. Additional homestead exemptions are available for residents who are over 65 years of age and those with specific circumstances in that age group. For detailed information about rates and exemptions, contact the appropriate county office.
Estate & Inheritance Taxes
Alabama does not impose an inheritance tax. The state's estate tax is tied directly to the federal estate tax and is calculated by using the tax computation on the federal estate tax return.
VOTER REGISTRATION
To register to vote in the State of Alabama, you must be a U.S. citizen, a resident of Alabama, at least 18 years of age, be mentally competent, and have not been convicted of a felony or have had your rights restored. Voter registration closes 10 days prior to each election. It is possible to download and print the voter registration form from the Secretary of State's website. Voter registration is also available at your county Board of Registrars. Many state and local government offices and agencies offer voter registration service including drivers license offices and libraries. Public universities also provide mail-in registration postcards. For answers to specific questions or more information on voting in Alabama, contact:
Alabama Secretary of State
Elections Division
334-242-4337
www.sos.state.al.us/election
League of Women Voters
The League is a nonpartisan political organization that encourages the informed and active participation of citizens in government. The organization assists voters in many ways while they work to increase the understanding of major issues.
National LWV
202-429-1965
www.lvw.org
LWV of Alabama
205- 871-8194
www.lwval.org
PET LICENSING
Most of the communities in Mobile and Baldwin counties have developed and enforce pet registration and rabies vaccination for dogs. In some cities, cats are also registered. Dog owners in the City of Mobile are required by law to register and purchase annual licenses for all dogs over three months old. Most areas also impose a leash law. . Licensing is not only important to public health but assists owners in locating lost pets. For specific guidelines in your community including registration deadlines, exact fees, and discounts for spayed and neutered animals, contact your local animal control officer.
HUNTING & FISHING LICENSES
Any Alabama resident between the ages of 16 and 64 must obtain a fishing and/or hunting license to fish or hunt on public or private land or waterways. Residents must show an Alabama drivers license and social security card at the time the license is purchased. All Alabama residents age 65 or older are not required to purchase hunting or fishing licenses if they have official proof of age. Those who were born on or after August 1, 1977, must have a Hunter Education Identification number. For complete details on hunting and fishing in Alabama, contact:
Alabama Department of Conservation & Natural Resources
Montgomery
334-242-3486
www.conservation.alabama.gov
Division of Wildlife & Freshwater Fisheries
Montgomery
334-242-3465
www.conservation.alabama.gov
Marine Resources Division
Dauphin Island
251-861-2882
Gulf Shores
251-968-7576
www.conservation.alabama.gov