The Alabama Department of Revenue has issued a revenue ruling providing guidance on the application of sales and use tax to bundled transactions that include both taxable and non-taxable items. Per the ruling, if a retailer sells taxable tangible personal property along with non-taxable property or services, the charges for the non-taxable items must be separately stated on the invoice and must not be incidental to the provision of the taxable tangible personal property in order for the non-taxable items to remain exempt. If the taxable and non-taxable items are not separately stated on the invoice, or even if they are separately stated but the nontaxable items or services are incidental to the provision of the taxable items, the total amount including the exempt items is subject to Alabama sales and use tax. Any retailers making bundled sales of taxable and non-taxable items in Alabama should break out the taxable and non-taxable line items on their invoices to avoid incurring tax on otherwise exempt items. (Revenue Ruling 2019-002, Alabama Department of Revenue)