Tags for commercial vehicles are offered in eight categories

1) Commercial Buses
2) Ambulances/Hearses
3) Farm Trucks
4) Forest Trucks
5) Taxi Cabs
6) Commercial Trucks
7) Motor Homes
8) Trailers

Registration for all commercial vehicles expires on November 30 of each year and must be renewed during October and November. Beginning January 2006, Act 2004-554 will change the registration expiration date to the last day of November, but retains the Oct/Nov renewal period. Registration fees for each category of commercial vehicle are determined by either vehicle weight or number of seats.

Beginning January 1, 2005, Act 2004-520 takes effect. This Act creates a new weight category for trucks in the 8,001 to 10,000 pound total weight (passenger, fuel, truck and cargo) truck class. This tag is available to commercial and private entities. The fee is $35 plus an issuance fee.

Exceptions to Commercial Vehicle Registration Rule:

1. Church, Private School, and Hospital Buses, are issued passenger tags not commercial bus tags.
   
2. Trucks that are less than 8,001 pounds are considered passenger trucks and are registered with a regular passenger vehicle and renewed under staggered registration system based on the first letter of the owner's last name.
   
3. R1 and R2 tags are issued under the staggered registration system based on the first letter of the owner's last name. R3 to R6 are annually issued in October and November.
   
4. Bus that is converted into Motor Home. Five (5) year license plates revalidated annually in assigned month (unless gross weight exceeds 12,000 pounds). If the gross weight exceeds 12,000 pounds, the annual license plate is secured in October/November.
   

If someone purchased a truck and registers it within 60 days, he/she is not required to provide proof of payment of FHVUT, but only evidence of purchases within the sixty (60) day period. Is the purchaser not subject to the federal tax?
The purchase IS subject to the tax and must pay the tax by the last day of the month following the purchase of the vehicle. For example, if purchased in May, the owner must pay the tax by June 30th. If not the taxpayer becomes subject to penalties and interest;

The American Jobs Creation Act of 2004 now allows anyone selling a truck subject to FHVUT to obtain a CREDIT from the IRS on taxes paid based on Schedule 1, when selling his/her vehicle. Therefore, a copy of the previous owners Schedule 1 is no longer acceptable.

What is "suspended" Federal Heavy Vehicle Use Tax (FHVUT)?
Federal law provides that any vehicle owner who believes that his/her truck or tractor will be operated less than 5,000 miles in a taxable year (July 1 - June 30) may "suspend the payment of the FHVUT. Furthermore, anyone operating a vehicle 7,500 miles or less for agricultural purposes is not subject to pay the tax. HOWEVER, the owner is required to file the Form 2290 and MUST show to the tag department one of the earlier listed proof documents.

Must the issuing official retain the proof documents?
YES. Federal regulations require the records to be retained for one year. Thus, records should be available for the current registration year and for the previous registration year.

What is the toll free number for the IRS?
1-800-424-1000 (Ask for an excise tax specialist).
What if a registrant does not want to declare the gross weight?
Section 40 -12- 248, Code of Alabama 1975 reads "(c) Every person making application for license under this section to use a truck or truck tractor on the public highways of this state shall be required to make an affidavit declaring the gross vehicle weight of such truck or truck tractor and file the said affidavit with the judge of probate, or other county licensing officer, in the county in which the said application is made." The registrant must comply with Section 40 - 12- 248 before being issued a license plate.

Is a serviceman required to pay Ad Valorem taxes?
A serviceman who is a resident of Alabama (or who claims Alabama as his/her "home of record") IS subject to Alabama ad valorem taxes.

An Alabama motor vehicle dealer purchases an automobile in Georgia in January. The vehicle is in dealer inventory until July when it is sold. The purchaser would owe Ad Valorem tax from what month? July

How many years of ad valorem taxes is a taxpayer required to pay?
Alabama law allows the assessment of two (2) years escaped taxes plus the current taxes due.

Are there any situations where a nonresident serviceman would be subject to ad valorem taxes?
A non-resident serviceman could purchase a vehicle currently registered in Alabama, and the serviceman would be liable for accrued ad valorem tax from date previously paid.

How could one be liable for ad valorem tax for more than one year?
One could be liable if he/she bought a vehicle and the previous owner had not paid the tax or if the vehicle had not been registered within the last twelve (12) months.

Jefferson County Courthouse - (205) 325-5171
Bessemer Courthouse - (205) 481-4110
Center Point Satellite - (205) 856-8815
Forestdale Satellite - (205) 791-6196
Southern Satellite - (205) 916-2707