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Wednesday, December 11, 2013
(WDNG) - Alabama revenue officials want to remind online shoppers to pay sales tax on those internet purchases this holiday season. A release from the state Department of Revenue this week reminds Alabamians that shoppers owe a 4 percent state use tax on their out-of-state purchases if no tax has been collected by the out-of-state seller.
The state use tax is the same as the state sales tax rate and is specifically earmarked for the state’s Education Trust Fund. It was levied to prevent Alabama merchants from being unfairly disadvantaged to out-of-state catalog merchants who may not be required to collect a sales tax on Alabama residents.
According to the Department of Revenue release, shoppers also owe any city or county sales or use tax on online purchases. If your purchase receipt shows that you have paid sales tax to another state equal to the Alabama tax rate, you won’t be taxed again.
Taxes can be paid by entering the amount of use tax owed on a line item included on the Alabama individual income tax return.
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Keywords: Alabama Department of Revenue,online shopping,taxes,sales,use tax,Education Trust Fund
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