Alabama Tax Tribunal Reverses Partial Denial of Sales, Use Tax Exemption

Oct. 23, 2025, 1:59 PM UTC

The Alabama Tax Tribunal reversed the Department’s partial denial of the taxpayer’s request for full sales and use tax exemption certificates for 2023 and 2024. Taxpayer is a privately-owned wastewater utility service provider that operates wastewater treatment plants and collection systems in Baldwin County, Alabama. The Tax Tribunal found that the taxpayer acquired its equipment for pollution control purposes, as contemplated by the statutory exemption and the Department’s regulations, even though a secondary purpose may be providing services to customers as part of its business. The Tax Tribunal distinguished prior cases cited by the Department, finding that the taxpayer’s operations ...

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