Current through Register Vol. 42, No. 11, August 30, 2024
(1) Absent evidence to the contrary, where
any person is furnished utility services and is billed for such utility
services by more than one bill, it shall be presumed that the gross sales or
the gross receipts derived from the furnishing of utility services to such
person are taxable at the rate applicable to receipts derived from each bill,
and the tax so computed shall be added to each bill for utility services
furnished. If any person purchasing utility services and receiving more than
one bill from any one utility for such services desires that the tax levied by
Sections
40-21-80,
et seq., Code of Ala. 1975, as amended, be computed
upon the aggregate of the purchase price of utility services furnished by such
utility, such person may apply for a permit from the Department of Revenue and
be permitted to purchase certain utility services without the payment of the
tax to the utility subject to the following conditions, namely:
(a) The holder of such permit shall report
such utility tax upon forms prepared and furnished by the Department of Revenue
and shall pay said tax directly to the Department of Revenue on or before the
twentieth day of the month following the month during which such utility
services were used for a taxable purpose.
(b) The holder of such permit shall be
required to keep such books and records as may be necessary to determine such
tax liability, which records shall be subject to examination by the Department
of Revenue.
(c) Upon demand of the
Department of Revenue the holder of said permit shall execute a bond or
indemnity agreement securing the payment of such tax to the Department of
Revenue in an amount not exceeding estimated tax liability for six
months.
(d) Said permit shall not
be transferable and may be canceled upon notice by registered mail to the
holder thereof.
(2) The
application for a utility tax direct pay permit shall require the following
information:
(a) Applicant's Federal Employer
Identification Number,
(b)
Applicant's legal name and complete mailing address,
(c) Business address(es) in Alabama including
city, county, and street address or, if location is on highway or rural route,
including details sufficient to allow Department personnel to find the place of
business),
(d) Indication of the
nature of business (e.g. steel manufacturing, auto manufacturer,
etc.),
(e) Business phone
number,
(f) Desired effective date
of permit,
(g) The type of utility
service (s) the applicant wishes to purchase without payment of the tax to the
vendor and the name of the vendor(s) from whom the service(s) will be
purchased, and
(h) Signature and
title of sole proprietor, each partner, or an elected corporate officer and the
date of each signature.
(3) Utility tax direct pay permits shall
contain the following information:
(a)
Taxpayer's direct pay permit number, legal name, and complete
address,
(b) Permit holder's
principal business location,
(c)
Nature of the holder's business,
(d) Effective date of the permit,
(e) Type(s) of utility services which can be
purchased without payment of utility tax and the name(s) of the vendor(s) from
whom the specified utility services can be purchased without payment of utility
tax to the vendor,
(f) Statement
that the specified utility services purchased from the specified vendor(s)
shall be reported monthly to the Department of Revenue and the applicable
utility taxes paid thereon by the holder of the permit,
(g) Legal name of the applicant for the
direct pay permit, the date the application was filed, and the date the
Department of Revenue approved the application, and
(h) Signature on behalf of the Department of
Revenue and the date signed.
(4) Utility tax direct pay permit returns
shall require the following information:
(a)
Taxpayer's utility tax direct pay account number, legal name, and complete
address,
(b) Period covered by the
return and due date of the return,
(c) Estimated tax due for the current month,
if applicable must be at least equal to line 5 (Total Tax Due) of the return
for the same calendar month of the preceding year,
(d) The names of each vendor from whom
utility services were purchased without payment of tax and a breakdown, by
vendor, of the amount of taxable purchases of utility services and the tax due
on such purchases,
(e) Estimated
tax paid on previous month's return, if applicable,
(f) Tax due after deducting credit for
previous month's estimate,
(g)
Total tax due (tax due plus current month's estimate, if applicable),
(h) Penalties and interest due, if
applicable,
(i) Credits
claimed,
(j) Total amount
due,
(k) Total amount
remitted,
(l) An indication if
payment of tax is made through electronic funds transfer (EFT), and
(m) Taxpayer's signature, title, and the date
signed.
Author: Ginger Buchanan
Statutory Authority:
Code of Ala.
1975, §§
40-2A-7(a)(5),
40-21-85.
