ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.66. Fencing.
(1) Fencing materials of all kinds including fence posts, fence wire,
and fence accessories are building materials, the sales of which are at
retail and subject to tax when made to the person who will attach the fencing
materials to real property. Where the person who makes the installation
is the manufacturer of the materials used, such manufacturer owes sales
tax to be measured by the fair market value of the materials laid down
at the job site. The manufacturer is required by the Sales Tax Law to report
his use of such materials and pay tax thereon as if he had made a retail
sale of the materials. Any fencing materials installed by the manufacturer
not manufactured by him are taxed in the usual manner.
(2) In case a vendor or manufacturer of fencing materials is both selling
such materials to others for installation by them and furnishing and installing
the materials under contract all purchases of fencing materials are at
wholesale, tax free. Thereafter both sales to others and withdrawals for
use under installation contracts are to be reported as taxable sales to
the Department of Revenue. (Section 40-23-1(a)(10)) (Adopted May 26, 1961,
readopted through APA effective October 1, 1982)
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