The utility furnishing such telegraph or telephone services shall be entitled to deduct and retain from the gross amount of tax billed by the utility nine-tenths of one percent of the amount of such tax billed on or after February 1, 2002, in consideration of the costs incurred by the utility in collecting and remitting the tax levied by this subsection;  provided, however, that on and following October 1, 2002, the amount deducted and retained by such utility shall be one-fourth of one percent of the gross amount of such tax billed. Any person liable for taxes under the provisions of this article. Microsoft Edge. Sales taxes comprised 38%, business and license taxes 9%, property taxes 4% and motor vehicle fees 1%, Barnett’s report said. Any keeping or retention in the State of Alabama of utility services for any purpose, except sale in the regular course of business or subsequent use solely outside the State of Alabama. All rights reserved. Revenue and Taxation Section 40-21-53. Utility Gross Receipts Tax Exclusion. Am I required to pay my taxes electronically?Yes. The utility gross receipts tax levied on all companies furnishing electricity, water, gas, telephone or telegraph services garnered a record $420 million. For telephone companies the state tax is 6% of gross sales. A new departmental rule (810-6-5-.01-.01) that became effective in February created the renewal process. The biggest differences came in diesel and gasoline increases, which accounted for about $165 million more than in 2019. Business licenses issued statewide fell to 227,343 in 2020, the least since 2016, but fees collected were the third-highest, behind 2018 and 2016. Sales tax collections were a record $2.5 billion, up about $50 million from 2019. Nearly 16,000 taxpayers contributed to nonprofit organizations through the Alabama tax return checkoff system, sending $221,380 to 19 organizations, with the highest amounts going to the Child Abuse Trust Fund at $26,093 and the Alabama Veterans Program at $24,803. Individual refunds were issued to 1,155,558 Alabamians for a total of $662,541,121, or about $570 each. The tax shall be computed monthly with respect to each person to whom such services are furnished, in accordance with the following table: Alabama Code Title 40. Section 40-21-82 - Levy of tax; sourcing of gross sales or gross receipts from telegraph or telephone services. Beginning with bills dated on or after April 1, 2002, the tax shall be computed at the rate of six percent on all gross sales or gross receipts. Section 40-21-80Definitions. Water used in industrial manufacturing in which 50 percent or more is used in industrial processing is also exempt from the utility gross receipts tax. d. Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points. (e) Gross sales or gross receipts from the furnishing of telegraph or telephone services shall be sourced as follows: (1) Except for the defined telegraph or telephone services in subdivisions (3) and (4), the sale of telephone service sold on a call-by-call basis shall be sourced to a. each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or b. each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located. Alabama law (Sections 40-21-83 and 40-21-103) allows exclusions from the utility gross receipts tax and the utility service use tax if electricity or natural gas is used in an electrolytic or electro-thermal manufacturing or compounding process. (11) TAXPAYER. Additionally, Alabama law allows exclusions from the utility gross receipts tax and the utility service use tax for utility services used in certain types of manufacturing and compounding processes. AL Code § 40-21-80 (2016) What's This? Additionally, rates for taxes on gross receipts tend to be lower than sales tax rates although they often are applicable to more transactions. Alabama Code > Title 40 > Chapter 21 > Article 3 – Utility Gross Receipts Tax. (4) A sale of private communication service is sourced as follows: a. Gross receipts tax is paid by the business rather than by its customers and typically does not exempt many of the products and services that a sales tax law does. Despite the challenges of the pandemic, APSO members found ways to honor King's legacy. The utility gross receipts tax levied on all companies furnishing electricity, water, gas, telephone or telegraph services garnered a record $420 million. 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