Consumer’s Use Tax is levied on the storage, use, or other consumption of tangible personal property in the City of Tuscaloosa’s city limits and its police jurisdiction
Consumer’s Use Tax becomes due when the user and consumer of taxable goods does not pay tax to the seller, or pays tax to a seller that is not registered to collect City of Tuscaloosa tax. Use tax is due on purchases made by Tuscaloosa residents and businesses from another city or state which are not taxed. Generally, if you would be required to pay sales tax on goods purchased inside Tuscaloosa, but you purchase them outside Tuscaloosa and do not pay local sales tax, you are probably subject to use tax and must report and pay it to the city.
You are strongly encouraged to consult with your advisors or ask city representatives about how use tax applies to your activities.
Use Tax is due either monthly, quarterly, or annually. The State of Alabama will determine your filing frequency when you register with them. Your filing frequency with the City of Tuscaloosa must match how you are set up with the state. Use Tax is due by the 20th of the month following the period in which you are filing. Any Use Tax paid after this date will accrue additional penalties and interest. You can pay your use tax online via My Alabama Taxesor by submitting the form available on our Forms Page.
Businesses Providing Services
Many businesses primarily sell services, not merchandise to their customers, such as health care and dental professionals, attorneys, accountants, engineers, appraisers, software consultants, U.S. Government contractors, architects, and real estate agents. Although you may not be required to collect sales tax, it is very likely you are required to pay city use tax on materials, supplies, computer equipment, and other property used in your business, whether provided to your customers or not.
Consumer’s Use Tax Rates