Sales tax

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Sales tax is a public levy assessed on retail transactions. In the Birmingham area, sales taxes are collected by the State of Alabama, by individual counties, and by municipalities. State sales tax stands at 4 percent.


Tax rates

Jefferson County

Jefferson County adds a 2% levy, for a county-wide 6% base sales tax, to which individual municipalities add their own sales taxes.

Shelby County

Shelby County adds a 1% levy, for a county-wide 5% base sales tax, to which individual municipalities add their own sales taxes.

Exceptions

Public contracts

Non profits

Auto sales

Sales tax holidays

Controversies

Sales tax as a regressive tax

Sales taxes in police jurisdictions outside municipal boundaries

Sales tax referenda