Alabama Sales Tax Exemptions #

Exemption Reason	Form	Issued By	XMPT Delivery
Resale	STE-1 (Certificate of Exemption)	DOR & Purchaser	Forward
Wholesalers/Manufacturers	STE-1	DOR & Purchaser	Forward
Statutorily Exempt Entities	STE-1	DOR & Purchaser	Forward
Agricultural Exemptions	Title 40-23-4.3 Exemption Form	Purchaser
Government Entities	No Certificate Required for AL State/Federal
Schools/School Boards	STE-1E	DOR & Purchaser	Forward
Blind Vendors	STE-1	DOR & Purchaser	Forward
Manufacturing Equipment	STE-1	DOR & Purchaser	Forward
Utilities for Manufacturing	STE-1	DOR & Purchaser	Forward
Nonprofit Organizations	STE-1	DOR & Purchaser	Forward

Multi-state forms available: #

Form	Issued By	XMPT Delivery	Revision
MTC Uniform Sales Tax Certificate	Purchaser	Create	October 14, 2022

Notes: #

• Alabama issues two main types of exemption applications that are used by the state to issue the STE-1, the State Sales and Use Tax Certificate of Exemption:
  • ST:EX-A1 for wholesalers, manufacturers, and other product-based exemptions
  • ST:EX-A1-SE for statutorily exempt entities specifically listed in Title 40 Chapter 9
• Not all nonprofit organizations are exempt from sales and use taxes in Alabama. The organization must be specifically listed in the law (Title 40 Chapter 9) as exempt.
• Churches are not statutorily exempt from sales and use taxes in Alabama.
• Exemption certificates are valid for one year from the date of issuance and must be renewed annually before the end of the month in which the certificate expires.
• To renew an exemption certificate, an organization may submit a new application or, if they have an application on file that is less than three years old and the information is still current, they may send an email request to stexemptionunit@revenue.alabama.gov.
• Form ST:EX-A1 must be mailed to the appropriate Taxpayer Service Center listed in the instructions, while Form ST:EX-A1-SE must be emailed to stexemptionunit@revenue.alabama.gov or sent by U.S. mail.
• Alabama requires most exempt entities to file a quadrennial information report as a prerequisite for the renewal of certificates of exemption.
• For utility sales tax exemptions in manufacturing processes, a detailed energy study must be performed to identify the exact percentage of utility usage that is exempt from sales tax.
• Farmers do not receive exemption certificates, but instead can use the agricultural exemption form found in Section 40-23-4.3, Code of Alabama 1975.
• Parent Teacher Associations (PTAs) in Alabama may apply for sales tax exemption for fundraising purchases only, but must submit an official letter on school letterhead stating that all proceeds raised will be used for the sole benefit of the school.

Additional information is available on the State of Alabama FAQ page.