Alabama shoppers reminded to pay use tax when making purchases online

HUNTSVILLE, Al.
The Alabama Department of Revenue is reminding Alabamians who shop through the Internet, TV home-shopping networks or catalogs to report and pay use tax on their purchases if no tax has been collected by the online or catalog retailer.
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, according to the state's revenue department. Local taxes also apply for people who live in a city or county that levies a local sales or use tax. If a purchase receipt shows that a sales tax has been paid to another state that's equal to the Alabama tax rate, you won't be taxed again.
The state use tax rate is 4 percent, the same as the state sales tax rate. As is the sales tax, the 4-percent use tax is specifically earmarked for the state's Education Trust Fund. The use tax isn't a new tax, and is a complementary tax to the state sales tax.
Items subject to use tax are the same items that would be subject to sales tax if purchased in Alabama, such as computers, books, electronic equipment, toys, games, furniture, jewelry and clothing.
The use tax can be paid at the time someone files his or her annual Alabama individual income tax return by entering the amount of use tax owed on a line item included on the tax return. By doing this, the taxpayer either increases the balance due or decreases the income tax refund by the amount of the use tax owed.
For more information on Alabama's consumer use tax reporting requirements, contact the Alabama Department of Revenue Sales, Use and Business Tax Division at (334) 242-1490 or visit www.revenue.alabama.gov.