ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.144. Repairs to Tires and Tubes.
(1) Tire repairmen shall collect and remit sales tax on total charges
for recaps, retreads, and the major repairs; such as sectional, reinforcement,
and spot repairs. Materials used in recapping, retreading, and major repairing
are purchased at wholesale, tax free. Machines used directly in recapping,
retreading, and major repairing are taxed at the special one and one-half
percent rate levied on machines.
(2) Tire repairmen shall not collect sales tax on charges for tube and
minor tire repairs. Materials used in making tube and minor tire repairs
are taxable to the repairmen. Machines used solely in making tube and minor
tire repairs are taxable to the repairmen at the general rate of 4 percent.
(3)- (a) Where the repairman uses repair materials for tube and minor
tire repairs only, he shall pay tax thereon to his supplier; or, if purchased
outside of Alabama from a supplier who does not collect Alabama tax, he
shall pay the tax direct to the Department of Revenue as use tax.
- (b) Where the repairman does recapping, retreading, and major repairing
as well as tube and minor tire repair, he may purchase at wholesale all
materials used in tire and tube repairing; then shall pay sales tax direct
to the Department of Revenue on the cost price of materials withdrawn for
use in tube and minor tire repairing.
(4) All hand tools used in recapping, retreading, and major and minor
tire repairing are subject to sales tax. All supplies used or consumed
by tire repairmen and which do not pass on to their customers are taxable
when purchased by them.
(5) Sales by repairmen of repaired, retreaded, and recapped tires owned
by them are subject to tax measured by the total sales price without any
deduction for labor or cost of materials. (Readopted through APA effective
October 1, 1982, amended April 3, 1987)
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