law judge of the Alabama Department of Revenue has ruled that
state residents can continue to register newly-purchased tractor-trailers
in other states. The judge added, however, that perhaps Alabama
"use" tax would be due on such trucks when they traveled
on state roads.
allows a tax-exempt sale of a commercial vehicle that will be
taken from the state within 72 hours and registered or titled
and first used elsewhere. The DOR sought to limit this privilege
In its lawsuit
against Truck Central of Dothan Inc, Department of Revenue questioned
the truck dealer's practice of routinely accepting drive-out exemption
certificates from state residents buying trucks they promptly
removed from the state and registered in Oklahoma. The DOR alleged
the dealer had improperly suggested to customers they might register
in Oklahoma and avoid Alabama sales tax.
held that the department's use of "nonresident" in the
title of the exemption form and the regulation could not serve
to bar Alabama residents from taking advantage of the exemption
provided in law, and found that the dealer had accepted the certificates
in good faith from its customers, mostly Alabama owner-operators
driving for companies based in other states.