ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.89.02. Licensed Dealers, Sales to.
(1) Sales to Dealers at Wholesale. Sales of tangible personal
property are sales at wholesale, not subject to tax, when made to a licensed
dealer to be put into the stock of goods offered for sale by the dealer,
not withstanding the fact that the dealer may occasionally or habitually
withdraw from stock some part of the inventory for use or consumption in
connection with the business or for the personal use or consumption of
the dealer. Such withdrawals shall be reported on the licensed dealer's
sales tax return and the sales tax thereon computed and remitted to the
Department of Revenue. The sales tax on withdrawals shall be computed on
the cost to the dealer of the property withdrawn. See Rule 810-6-1-.196
Withdrawals from Inventory. (Sections 40-23-1(a)(6), 40-23- 1(a)(8), 40-23-1(a)(9)a,
and 40-23-1(a)(10))
(2) Sales to Dealers at Retail. Sales of tangible personal property
to a licensed dealer for his own use or consumption rather than for resale
purposes are sales at retail and are subject to tax. (Sections 40-23-1(a)(10)
and 40-23-2) (Readopted through APA effective October 1, 1982, amended
January 27, 1998)
Numeric Index