Monday, December 2, 2013

“Home Rule” Sales Tax in Alabama, Arizona, Colorado and Louisiana

States can give local governments the ability to charge localized sales taxes. Most often, the states collect the sales tax and distribute it to the local governments. In Alabama, Arizona, Colorado and Louisiana, the local governments can choose to administer and collect sales tax themselves. Referred to as “home rule,” Alabama has 385 home rule jurisdictions, Arizona 17, Colorado 65 and Louisiana 63.

AMSOIL has voluntary agreements with all U.S. states that charge sales tax, allowing the company to collect the sales tax from Dealers on suggested retail pricing, then remit the tax to the states. Due to this agreement, Dealers aren’t required to register for sales tax with their states.

AMSOIL has no agreement in place with the 530 home rule jurisdictions. Dealers located in these home rule jurisdictions are responsible for registering, collecting and remitting the home rule taxes.