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GENERAL INFORMATION FOR PREPARING LEASE TAX RETURNS
DUE DATE OF TAX. The tax imposed by Ordinance No. 97 - 187, the Lease Tax Code of the City of Birmingham, shall be
due and payable to the City monthly on or before the twentieth (20th) day of the month next succeeding each monthly
period*. The date of the United States postmark stamped on the cover in which this return or payment is mailed shall be
deemed to be the date of delivery, or the date of payment, whether mailed to the Finance Department or the department's
designated depository. A return must be filed even if no tax is due.
UNTIMELY FILING. Any return or payment not received in accordance with the provisions of Section 5(c) of Ordinance
No. 97 - 187 shall be deemed untimely filed and shall be assessed applicable penalties and interest, as prescribed by
Section 13 of Ordinance No. 97 - 187. To avoid penalties, returns should be filed by the due date, and any tax amounts
due should be timely paid. Please note that the penalties outlined in Section 13 include, but are not limited to, a penalty
of 10% of the amount of tax due or $50, whichever is greater, which may be assessed for failing to timely file returns.
REQUEST FOR RULING ON DETERMINATION OF TAXATION. Any taxpayer may request a ruling on the determination
of whether amounts of gross proceeds of lease/rentals of tangible personal property in the City by a taxpayer are
subject to the tax or are not to be used as a measure of the taxes due and payable as levied by the Lease Tax Code.
Such request shall be made in writing to the Finance Department and shall contain all pertinent facts and documentation
of any written determinations or revenue rulings issued by the State of Alabama Department of Revenue relating to the
item(s) in question.
MISCELLANEOUS. Any person who sells out or quits business is required to file a final return within thirty (30) days after
the date of selling out or quitting business. The new owner or successor shall be required to hold out sufficient of the
purchase money to cover the amount of any lease tax that may be due by the former owner. If the new owner or
successor shall fail to withhold purchase money as required by Section 16 of Ordinance 97 - 187, and the taxes remain
due and unpaid after said thirty (30) day period, he shall be personally liable for the payment of the amount of taxes
required to be remitted by the former owner, and any interest and penalties accrued and unpaid by any former owner.
If in such case the department deems it necessary in order to collect the taxes due, it may make a jeopardy assessment
as provided in the Title 40, Chapter 29 of the Code of Alabama 1975.
AUTOMOTIVE TAX RATE. A privilege or license tax is imposed on every person engaging or continuing within this City
in the business of leasing or renting any automotive vehicle or truck trailer, semitrailer or house trailers and including
all gross proceeds derived from leasing or renting or deductions for sub-leasing of motor vehicles, manufactured
homes (house trailers), motorcycles, lift trucks, cranes, airplanes, motor boats (with inboard, or permanently attached
outboard motor) at the rate of three-fourths of one percent (3/4%) of the gross proceeds derived by the lessor
from the lease of rental of such automotive vehicle or truck trailer, semitrailer or house trailer. All leases/rentals
of such items shall be entered under Column A on the appropriate line. All deductions of such items shall be entered under
Column B and detailed in the "STANDARD DEDUCTION SUMMARY TABLE" on the reverse side of the return
form.
GENERAL TAX RATE. A privilege or license tax is imposed on every person engaging or continuing within this CIty in the
business of leasing or renting of all other tangible personal property not enumerated above at the rate of three percent
(3%) of the gross proceeds derived by the lessor from the lease or rental of such property. All leases/rentals of such
items shall be entered under Column A on the appropriate line. All deductions of such items shall be entered under
Column B and detailed in the "STANDARD DECUTION SUMMARY TABLE" on the reverse side of the return form.
Interest Explanation. Interest shall be added as provided herein to any tax or other amount due the
department which is not paid by the due date. Interest on any delinquency shall be charged from the
due date of the tax.
Through July 31, 2017 Interest shall accrue at a rate of 1% per month delinquent.
Beginning August 1, 2017 Interest shall accrue at the rate pursuant to Code of Alabama,
Section 40-1-44. See https://revenue.alabama.gov/assessments/quarterly-interest-rates/
Note: (1) If the total of leases/rentals for which a person is liable does not exceed $5,000 per month during the
preceding calendar year, a quarterly return may be filed on or before the 20th day of the month next succeeding the end of
the quarter for which the tax is due. This election must be made in writing and filed with the department no later than
February 20th of each year. If such election is not timely made, returns shall be due monthly.
(2) If the total amount of leases/rentals for which a person is liable does not exceed $250 during the proceding calendar year, the
taxpayer may elect to file a yearly return. In order to file yearly, the election shall be made in writing and shall be filed with the
department. Such yearly returns shall be filed no later than January 20th of each year. If such election is not timely made, and
in accordance with the provisions of Ordinance No 97 - 187, returns shall be due monthly.
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