Alabama Amends Utility Gross Receipts and Service Use Tax Provisions

Effective April 4, 2006, Alabama amended certain provisions of the Utility Gross Receipts Tax and the Utility Service Use Tax by providing rules regarding the sourcing of gross receipts and gross sales for public utilities that provide telegraph or telephone services. For example, the sale of telephone service sold on a call-by-call basis may either be sourced to a) each level of a taxing jurisdiction where the call originates and terminates in the jurisdiction or b) at each level of a taxing jurisdiction where the call either originates or terminates and in which the service address is also located. In addition, the law provides definitions relating to the sourcing of telegraph or telephone services. (2006 AL S 316)

Posted on August 28, 2006