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How does Avalara handle the 1.5% Partial Exemption for Industrial or Manufacturing in the State of Alabama?

Overview

You want to know how Avalara handles a partial exemption for Industrial/Manufactures in the State of Alabama at the state-level.

Environment

Avalara AvaTax

Resolution

  • At this time, Entity Use Code (EUC) I)Industrial/Manufacturing returns an Exempt tax result for the raw materials exemption that exists for Manufacturing.

    • In order for  I)Industrial/Manufacture) to return the reduced rate (1.5%) for Manufacturing Machinery and Equipment, you will need to use this exemption reason in conjunction with one of the following Tax Codes:

      • PM020700 - Manufacturing Machinery

      • PM020704 - Repair or Replacement Parts for Manufacturing Machinery

    • You may also choose to create a custom Entity Use Code by entering one or more Custom Tax Rules to your Admin Console