1. (1) Sales to privately owned educational institutions are exempt from sales and use tax.

2. (2) Privately owned educational institutions are:

   1. (a) Institutions operating within the State of Alabama offering conventional and traditional courses of study, such as those offered by public schools, colleges or universities within the State of Alabama. These are often referred to as “private schools”.
   2. (b) Schools of business instruction where, in addition to specialized courses such as typing, there are also offered general courses in conventional academic subjects such as grammar, spelling, and mathematics.
   3. (c) Kindergartens at which pre-grammar-school-age children are given initial instructions in the arts of reading, writing, and the use of numbers.

3. (3) Privately owned educational institutions are not:

   1. (a) Institutions at which the courses of study are limited to specialized subjects such as dancing, riding, music, cooking, sewing, and welding.
   2. (b) Nurseries, day care centers, or home schools.
4. (4) Nurseries or day care centers and kindergartens that are operated together must separate purchase records to support the exemption for the kindergarten. In the absence of separate records, the total purchases will be subject to the tax.

Author: Lee Ann Rouse

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-23-30, 40-23-31, 40-23-4.

History: Adopted March 9, 1961. Amended: November 1, 1963; August 16, 1974. Filed September 28, 1982. Amended: Filed August 27, 2014; effective October 1, 2014. Repealed and New Rule: Published August 31, 2021; effective October 15, 2021.