ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.09. Automobile Repair Shops and Garages.
(1) Sales of tangible personal property, such as automobile parts, automobile
accessories, tires, batteries, etc., by automobile repair shops and garages
to purchasers for use and not for resale, either separately or in connection
with automobile repair work, are subject to the sales tax. Charges for
labor and service performed in connection with such repair work or installations
are to be included in the measure of the tax, if not separately billed
to customers.
(2) When labor and service are separately billed from the sale of parts,
etc., the tax does not apply to the labor and service rendered.
(3) Books must be kept in such a manner as to clearly reflect the separate
sources of receipts. This tax will apply to the total gross receipts of
any automobile repairers who fail to make such separation of charges on
bills tendered to their customers. Materials and supplies used by automobile
repair shops and garages in rendering services but which are not resold
as merchandise are subject to sales tax when purchased by repairmen from
the supply dealer. (Section 40-23-1(a)(6)) (Readopted through APA effective
October 1, 1982)
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