Small Business Guide - Welcome to Alabama A&M University

S m a l l B u s i n e s s H a n d b o o k f o r N o r t h A l a b a m aTHE STATE TAX RATES2% Automotive RateIf you purchased an automotive vehicle from outside the state anddid not pay the usual sales and use tax when you purchased your tag,or, if no tag is required for the vehicle, you owe use tax at the rate of2% of the purchase price. Examples of items not requiring tags whichqualify as automotive vehicles include: off-road motorcycles, ATVs,and self-propelled construction equipment.1½% Agriculture RateMachines and equipment and parts for machines and equipmentused in connection with the production of agricultural products, livestock,or poultry on farms are subject to tax at the rate of 1½%.1½% Machine RateMachines and the parts for machines used in mining, quarrying, compounding,processing and manufacturing tangible personal propertyare taxed at the rate of 1½%.4% General RateAll other taxable tangible personal property is taxed at the rate of 4%of the purchase price.Individual Estimated TaxAll incomes from self-employment, interest, dividends, alimony, rent,gains from the sale of assets, prizes, and awards are subjects of estimatedtax, if Income (except wages) is≥ $1,875 (single person or married person filing separate return)≥ $3,750 (married person living with spouse and filing a joint return)And the estimated tax ≥ $100The Form 40 ES is required to file your estimated tax.Due days are the 15 th of April, June, September, & January.More details: http://www.irs.gov/businesses/small/article/0,,id=110413,00.htmlProperty Tax: http://www.ador.state.al.us/advalorem/index.htmlFor more information and assistance,contact the Alabama A&M PRIME Project 256-372-8667.36