(1) First purchasers receiving exempt product which will be processed into a finished aggregate or limestone product for resale are required to remit the tax when the product is sold and transported on a public road in this State.
- (a) Purchasers claiming an exemption must provide identifying information to the producer as outlined in Rule 810-8-7-.05 to document the exemption.
- (b) Purchasers using the materials for other than an exempt purpose shall be liable for the tax.
- (c) Purchasers must maintain records documenting the right to all claimed exemptions.
- (d) Purchasers claiming exemption from the tax are subject to audit by the Department.
- (e) If a purchaser maintains inadequate information to document the claimed exemption or if an exemption is disallowed as a result of an audit; the Department will collect the tax, penalty and interest from the purchaser.
Author: Alisa G. Johnson
Statutory Authority: Code of Ala. 1975, 40-2A-7(a)(5), 40-13-55.
History: New Rule: Filed December 7, 2012; effective January 11, 2013.