Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-6-2 - TAXES LEVIED ON GROSS SALES AND GROSS RECEIPTS; APPLICABLE TAX RATES
Section 810-6-2-.39 - Machine Shop Equipment

Machine shop equipment used for maintenance and repair purposes is taxable at the general rate of 4%. Machines used both in maintenance and repair work and in the production of manufactured articles are taxed at the special machine rate of 1 1/2% when use in production is substantial. Tax is due at the general rate, however, when use in production is an incidental or inconsequential use as compared to use in maintenance and repair. (Adopted March 9, 1961, amended November 1, 1963) §§ 40-23-1(10), 40-23-2(3)

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Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.