Statutes, codes, and regulations
Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-6-5 - USE TAX LAW; CONTRACTORS GROSS RECEIPTS TAX; LODGINGS TAX; RENTAL TAX; UTILITY TAXES; MISCELLANEOUS RULES
Section 810-6-5-.16 - Churches And Other Religious Organizations And Institutions

Ala. Admin. Code r. 810-6-5-.16

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Current through Register Vol. 42, No. 12, September 30, 2024
Section 810-6-5-.16 - Churches And Other Religious Organizations And Institutions
(1) Except as noted in paragraphs (2) and (3), religious organizations and institutions, including churches and church hospitals, are not exempt from the payment of sales or use taxes on their purchases of tangible personal property. Further, these organizations and institutions, when engaging in the business of selling tangible personal property at retail or operating a public place of amusement or entertainment, must comply with the provisions of the sales and use tax laws relative to collecting, reporting, and paying sales or use taxes. (§§ 40-23-2, 40-23-7, 40-23-61, and 40-23-68, Code of Ala. 1975)
(2) Printed or illustrated lessons, notes, and explanations purchased by churches or other religious organizations for distribution free of charge to pupils or students in Sunday schools, Bible classes, or other educational facilities established and maintained by churches or similar religious organizations are exempt from use tax. There is no corresponding exemption from sales tax. This use tax exemption does not apply to purchases which are not distributed in the manner enumerated above or to purchases made by individuals. Sales of hymn books, Bibles, and other religious publications to churches, other religious organizations and institutions, or individuals are taxable at the general rate of sales or use tax. (§§ 40-23-2, 40-23-61, and 40-23-62(4), Code of Ala. 1975)
(3) Certain religious organizations and institutions are specifically exempted from the payment of sales and use taxes pursuant to special acts of the Legislature. (See Rule 810-6-3-.07.05 entitled Charitable Organizations and Institutions.)

Ala. Admin. Code r. 810-6-5-.16

Amended: Filed November 23, 1998; effective December 28, 1998.
Amended by Alabama Administrative Monthly Volume XXXVII, Issue No. 02, November 30, 2018, eff. 1/3/2019.

Authors: Michele Mayberry, Patricia A. Estes, and Dan DeVaughn

Statutory Authority:Code of Ala. 1975, §§ 40-2A-7(a) (5), 40-23-2, 40-23-7, 40-23-31, 40-23-61, 40-23-62(4), 40-23-68, 40-23-83.