Alabama Updates Rules for Contractors and Subcontractors

Effective February 12, 2024, under the amended Reg. 810-6-3-.77, Alabama contractors and subcontractors saw changes to their requirements. First, contractors and subcontractors of Alabama Statutorily Exempt Entities as defined in Code §40-23-1 are now eligible to apply for their Sales and Use Certificate of Exemption for projects beginning on or after January 1, 2024, though their My Alabama Taxes account. Second, these contractors and subcontractors will no longer be required to submit a monthly consumer use tax return for exempt purchases.

Contractors and subcontractors in Alabama should determine if they are up to date on these changes to take advantage of this newly streamlined process. For more information, taxpayers are encouraged to contact the Alabama Department of Revenue Sales and Use Tax Division Exemption Unit. (Notice, Alabama Department of Revenue, February 15, 2024; ALDOR Rule 810-6-3-.77, Amendment effective February 12, 2024)

Posted on February 28, 2024