Ala. Admin. Code r. 810-6-1-.12.01

Current through Register Vol. 43, No. 1, October 31, 2024

Section 810-6-1-.12.01 - Courtesy Deliveries Of Automotive Vehicles By Alabama Dealers For Out-Of-State Dealers

(1) A courtesy delivery for an out-of-state automotive vehicle dealer occurs when:

(a) The out-of-state dealer sells an automotive vehicle to a customer and arranges for the vehicle to be shipped to an in-state dealer for delivery to a designated person in Alabama.

(b) The in-state dealer performs the customary dealer preparation on the vehicle and receives reimbursement for these services.

(c) The out-of-state dealer, not the in-state dealer, invoices the customer for the sale of the vehicle.

(2) The out-of-state dealer for whom a courtesy delivery is made by an Alabama dealer is the seller of the automotive vehicle.

(3) An Alabama dealer who makes a courtesy delivery of an automotive vehicle in Alabama for an out-of-state dealer is not the seller of the vehicle and is not liable for Alabama Sales Tax on the transaction. Such courtesy deliveries should not be included in the measure of sales tax reported by the Alabama dealer.

(4) The out-of-state dealer making a courtesy delivery is not liable to collect and remit Sellers Use Tax on sales of automotive vehicles required to be registered or licensed with the local licensing official of any county in Alabama. Instead, the purchaser of the automotive vehicle must remit the tax levied in § 40-23-102, Code of Ala. 1975, to the local licensing official in accordance with § 40-23-104, Code of Ala. 1975.

Ala. Admin. Code r. 810-6-1-.12.01

Filed March 22, 1989; adopted May 9, 1989; filed June 2, 1989. Amended: Filed October 1, 1996; effective November 5, 1996.

Amended by Alabama Administrative Monthly Volume XXXVIII, Issue No. 02, November 29, 2019, eff. 1/13/2020.

Author: Dan DeVaughn

Statutory Authority:Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-31, 40-23-83, 40-23-102, 40-23-104.