Client in Mobile getting charged 9% sales tax by Alabama Power. Alabama state sales tax is 4% plus local taxes should be about 3% for Mobile County. Total of 9% seems high. Anyone know the correct sales tax rate for Alabama Power customers in Mobile area?
Alabama sales tax issue - Alabama Power overcharging
Mobile city sales tax is 5% plus state 4% = 9% total. That sounds correct for Alabama Power residential/commercial accounts. Are you sure they're not eligible for any exemptions?
Client is commercial office building, no manufacturing or government exemptions apply. Guess 9% is correct then. Just seemed high compared to other states I've worked.
Alabama does have higher sales tax rates than many states, especially when you add city and county taxes. Always verify the combined rate rather than assuming it's too high. Mobile's 9% is actually correct.