Accurately calculating and remitting sales tax in Alabama involves several steps:

• Identify Taxable Items: Determine if the product or service is taxable.

• Apply State and Local Rates: Use the base state rate of 4% and add applicable county and city rates based on the buyer’s location.

• Calculate Total Tax: Multiply the sales price by the combined tax rate.

• Collect Tax: Ensure the correct amount is collected at the time of sale.

• Remit Tax: Regularly file and remit the collected taxes to the Alabama Department of Revenue and local authorities according to the filing schedule.