ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.51. Deposit on Bottles.
(1) Where a retailer sells bottled drinks and the sales price includes
the deposit on the bottles and sales tax is charged on the total sales
price, the amount of the deposit which is refunded on the return of the
empty bottles is not subject to sales tax and may be deducted from the
gross proceeds of sales where the retailer refunds the deposit on the bottles
and also refunds the sales tax previously collected on the deposit for
the bottles.
(2) Where such retailer refunds the deposit on the bottles and at the
same time does not refund the sales tax previously collected on the deposit
for the bottles, he may not deduct from the gross proceeds of sales the
amount of the deposit so refunded and the full sales price of the bottled
drinks is to be included in the gross proceeds of sales and the tax collected
must be remitted to the State. (Adopted July 31, 1963, readopted through
APA effective October 1, 1982)
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