Sales and Use Tax Certificate of Exemption for a Government Entity Project

A Sales and Use Tax Certificate of Exemption must be separately acquired by the Owner and Construction Contractors per Act 2013-205 and Section 40-9-14.1 of the Code of Alabama, 1975, as amended, for each government entity owned project; this applies to the following projects within DCM's jurisdiction: State Agency projects, Public University and other Public Postsecondary projects, Public K-12 School projects, and County or Municipal owned projects. The projects within DCM's jurisdiction to which this does not apply are Private Universities, Private Colleges, Private K-12 Schools, Privately-Owned Hotels/Motels, and Privately-Owned Movie Theaters.
DCM strongly recommends that Owners, General Contractors, and Subcontractors fill out and simultaneously submit their required separate application forms to the Alabama Department of Revenue as quickly as possible after contract execution.
The Application for Sales and Use Tax Certificate of Exemption is available from: https://revenue.alabama.gov/wp-content/uploads/2017/05/ST-EXC-01.pdf.
Once awarded a certificate of exemption, Contractors may use their own certificate to purchase materials tax exempt for a specific project.
Greater detail is available on:
- Memo on Sales Tax Certificate, dated 10/28/13.
- Additional Memo from ADOR on Certificates of Sales Tax Exemption for Government Entity Projects, dated 01/22/14.
- Contractor's Exemption, Legislative Act No. 2013-205, Effective 01/01/2014 - power point presentation.