The Alabama Sales Tax is collected as a percentage of the final purchase price of all qualifying sales, and is collected directly from the end consumer of the product.Īlabama's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the Alabama government by the merchant before the goods can be sold. The most prominent excise taxes collected by the Alabama state government are the fuel tax on gasoline and the so-called 'sin tax' collected on cigarettes and alcoholic beverages.Īn excise tax is not the same thing as the Alabama Sales Tax. An excise tax is a tax directly levied on certain goods by a state or federal government.
