Ala. Admin. Code r. 810-6-1-.04

Current through Register Vol. 42, No. 11, August 30, 2024

Section 810-6-1-.04 - Radio And Television Antennas And Television Satellite Dishes

(1) Retail Sales. Retail sales of radio and television antennas, television satellite dishes, and their parts and attachments are subject to sales or use tax

(a) When antennas and satellite dishes, along with their parts and attachments are sold for a lump sum amount that includes both the antenna or satellite dish and the cost of erection or installation, the lump sum must be used as the measure of the tax to be paid to the state. When separate contracts are made for the sale of the tangible personal property and for the erection or installation, the tax should be measured by the sales price. The billing to the customer and the books of the seller must clearly show the receipts from sales and from erection and installation separately.

(b) The sale of antennas or satellite dishes and parts and attachments are wholesale sales when made by vendors to dealers who do not furnish or install, but hire an outside supplier to furnish and install for them. The dealer in these instances must collect and remit tax to the state as described in subparagraph (a).

(c) When dealers and suppliers make over-the-counter sales of antennas or satellite dishes and parts and attachments to consumers, the sales to consumers are subject to sales tax that must be collected by the seller and paid to the state.

(d) The dealers and suppliers making the sales described in subparagraphs (a), (b), and (c) purchase at wholesale, tax free, the antennas or satellite dishes and parts and attachments resold by them. (§ 40-23-1(a)(10))

(2) Machine Rate. Sales of radio and television antennas, television satellite dishes, and parts and attachments, qualify for the machine rate of sales or use tax, when sold to radio and television stations or broadcasting companies for use in their business of producing and propagating radio or television signals. (Kline Iron & Steel Corp. v. State of Alabama Circuit Court of Montgomery County, Civil Action Nos. CV-78-1250-P and CV-78-1251-P, April 26, 1979)

Ala. Admin. Code r. 810-6-1-.04

Readopted through APA effective October 1, 1982. § 40-23-2(3). Amended: Filed August 28, 1987.

Amended by Alabama Administrative Monthly Volume XL, Issue No. 02, November 30, 2021, eff. 1/14/2022.

Authors: Dan DeVaughn, Leslie Michaud

Statutory Authority:Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-1(a)(10), 40-23-2(3), 40-23-31, 40-23-83.