By:  Jennifer Stripling, Tax Manager

Jennifer is a tax manager, a member of the JMF Tax Department and in an integral part of the JMF State and Local Tax (SALT) group.  With over 11 years of experience, she assists clients with corporate, partnership, and individual income tax reporting as well as complex multi-state income and sales tax issues.

Effective January 1, 2016, all entities that have a statutory exemption from Alabama sales, use and lodging taxes are required to obtain an annual certificate of exemption from the Alabama Department of Revenue.

All entities that maintain a certificate of exemption are now subject to the Alabama Department of Revenue’s informational reporting requirement. The report is required to be filed every 4 years and is completed online through the Department’s electronic filings system, My Alabama Taxes. The first report required to be filed is due October 31, 2017 with a reporting period of January 1, 2017 through September 30, 2017. The next report will be due October 21, 2021 with a reporting period of the prior year from October 1 through September 30.

Entities failing to obtain a certificate of exemption or comply with the required information report could be barred from using their certificate of exemption until the required report is filed. The Department may assess state and local sales, use and lodging tax for any transaction conducted when the certificate of exemption is not property accounted for and reported in accordance with the rules.

If you have any questions about sales, use and lodgings tax issues, please contact your JMF professional.