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Why does "ALATAX" show up on my liability worksheet?

Overview

Why is the county of Houston and the city of Dothan combined on the liability worksheet as "ALATAX LOCAL GOVERNMENT SERVICES"?

Environment

Avalara Returns

Resolution

  • There are three generic methods of filings in AL.
    • State - Some jurisdictions allow the state to collect taxes on their behalf. Those jurisdictions will all be filed on the AL 9510.
    • Local - Some jurisdictions collect taxes themselves and have their own returns, such as Mobile and Irondale
    • Third party administration - Some jurisdictions hire a third party to assist in the collection of taxes on their behalf.
      • The "ALATAX LOCAL GOVERNMENT SERVICES" is the name of the form used by the Revenue Discovery Service (RDS), which is a third party firm.
      • Each jurisdiction that has signed up to be collected through the RDS will be filed on this return. More information about about the RDS can be found on their site: http://www.revds.com/taxpayer/stateOptionNav.php?state=AL
  • The state also provides a listing of which method each jurisdiction uses to file https://revenue.alabama.gov/salestax/address.pdf
  • Both Houston (County) and Dothan City are listed as administered by the RDS and will land on the ALATAX LOCAL GOVERNMENT SERVICES, as a result.