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Q: Are churches in Alabama sales tax exempt?
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Are churches exempt from sales tax in Alabama?

Alabama is one of only a handful of states that imposes its sales and use taxes on churches. Ironically, it does exempt them from income and ad valorem property taxes, but no express exemption exists from sales and use taxes. We can argue about whether it is proper to impose sales and use taxes on such charitable organizations, many of which are serving to relieve some of the burdens of state and local governments to provide services to those less fortunate. Argument can be made that all Alabama churches should be exempt, as are churches in most states, from state and local sales and use taxes. A few brave souls would argue that churches should not be exempt from tax at all. Regardless of your position, Alabama made the choice long ago not to provide such a general exemption from sales and use taxes for Alabama churches. There is, however, at least one option by which Alabama churches can obtain exemption from state and local sales and use taxes. Alabama churches have the option of forming a united appeal fund, which can not only bolster the church's benevolent work, but also allow the church to become exempt from all Alabama taxes, including sales and use taxes. This can result in a substantial savings to the overall annual budget of the church (almost immediately if a building or renovation project is to be undertaken soon or other large dollar purchase is about to take place), especially when you consider that combined sales and use tax rates are at or above 10% in some jurisdictions in Alabama. Two separate Alabama Department of Revenue Administrative Law Division cases have upheld the use of a united appeal fund structure in this manner previously and many churches across Alabama have chosen to establish united appeal funds to benefit their churches and charities with whom they have a relationship. While united appeal funds are not for every church, until all Alabama churches obtain tax exemption outright, at least some churches do have an option to obtain exemption under Alabama law. Posted by Blake A. Madison at 4:45 PM


Why are churches tax exempt?

Tax is exempted because churches teach d citizens morals dat is also found in constitution


Meaning of SRO in sales tax?

SRO in sales tax relates to self-regulatory organizations. These organizations typically use their own sales tax or are exempt from them.


Are eyeglasses exempt from sales tax in Arizona Why do some place charge sales tax and yet others do not?

Arizona does not charge sales tax on prescription eyeglasses. Online searches pull up not only opticians' opinions, but state law stating glasses are tax exempt.


What is the sales tax for blount county Alabama?

The tax rates for Oneonta, AL Blount County and Alaba State Sales tax can be found at: http://www.ador.state.al.us/salestax/sales/index.cfm?Action=CityDetail Oneonta, AL Sales Tax is 3% Blount County, AL is 2% Alabama Sales Tax is 4%

Related questions

What is the sales tax in Alabama?

Current sales tax is 4%, and prescription drugs are exempt. Do know that this state occasionally holds a sales tax holiday, usually near the beginning of the school year, where certain goods are exempt from sales tax for one day.


Are churches exempt from sales tax in Alabama?

Alabama is one of only a handful of states that imposes its sales and use taxes on churches. Ironically, it does exempt them from income and ad valorem property taxes, but no express exemption exists from sales and use taxes. We can argue about whether it is proper to impose sales and use taxes on such charitable organizations, many of which are serving to relieve some of the burdens of state and local governments to provide services to those less fortunate. Argument can be made that all Alabama churches should be exempt, as are churches in most states, from state and local sales and use taxes. A few brave souls would argue that churches should not be exempt from tax at all. Regardless of your position, Alabama made the choice long ago not to provide such a general exemption from sales and use taxes for Alabama churches. There is, however, at least one option by which Alabama churches can obtain exemption from state and local sales and use taxes. Alabama churches have the option of forming a united appeal fund, which can not only bolster the church's benevolent work, but also allow the church to become exempt from all Alabama taxes, including sales and use taxes. This can result in a substantial savings to the overall annual budget of the church (almost immediately if a building or renovation project is to be undertaken soon or other large dollar purchase is about to take place), especially when you consider that combined sales and use tax rates are at or above 10% in some jurisdictions in Alabama. Two separate Alabama Department of Revenue Administrative Law Division cases have upheld the use of a united appeal fund structure in this manner previously and many churches across Alabama have chosen to establish united appeal funds to benefit their churches and charities with whom they have a relationship. While united appeal funds are not for every church, until all Alabama churches obtain tax exemption outright, at least some churches do have an option to obtain exemption under Alabama law. Posted by Blake A. Madison at 4:45 PM


Are churches in Florida exempt from paying documentary stamp tax and intangible tax?

Churches in Florida are exempt from paying intangible tax but not documentary stamp taxes. The state, county, and municipalities are exempt from the documentary stamp tax.


Are newspapers exempt from sales tax during a purchase in the state of Georgia?

Newspapers are exempt from sales tax in Georgia if they are sold by subscription or at a fixed rate. However, sales of newspapers at retail locations can be subject to sales tax in Georgia.


What is meant with tax exempt form in finances?

Sales tax exempt forms are for individuals or companies that are exempt from sales tax. This could be if you run a charitable, educational or other organizations.


What is an Alabama sales tax token?

The Alabama sales tax rate is currently 4%.


Why are churches tax exempt?

Tax is exempted because churches teach d citizens morals dat is also found in constitution


Meaning of SRO in sales tax?

SRO in sales tax relates to self-regulatory organizations. These organizations typically use their own sales tax or are exempt from them.


What types are items are tax exempt for a business?

Items that a business buys with the intention of reselling them are exempt from sales taxes. However, the business has to charge sales tax when it does resell that item.


Can the government levy taxes on churches?

The government cannot levy taxes on churches. Churches do not have to pay taxes to the government; they are tax exempt.


Are eyeglasses exempt from sales tax in Arizona Why do some place charge sales tax and yet others do not?

Arizona does not charge sales tax on prescription eyeglasses. Online searches pull up not only opticians' opinions, but state law stating glasses are tax exempt.


Which tax exempt products are subject to corporation tax?

In the US, the term Corporation Tax relates to Corporate Income Tax. Tax Exempt products relates to State Sales Tax. The two are entirely different and unrelated. A company could certainly sell only tax exempt products (say prescription drugs, or only to wholesalers - which is not sales taxable), but would be subject to corporate income tax on the revenue from those sales.