# Ala. Code § 40-23-3: Section 40-23-3 Exclusion of Certain Municipal Privilege License Taxes

> Alabama · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-3

## Section

- **Citation:** Ala. Code § 40-23-3
- **Heading:** Section 40-23-3 Exclusion of Certain Municipal Privilege License Taxes
- **Jurisdiction:** Alabama
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Alabama Code / Title 40 / Chapter 23 / Section 40-23-3

## Text

Municipal privilege license taxes which are levied and collected by the application of a flat percentage rate of gross sales, or gross receipts from sales, and which are passed on directly by the licensee-seller to the purchaser-consumer shall be excluded from gross sales, or gross receipts, as the case may be, in the computation of the sales tax levied by this state, under the provisions of this division.

## Nearby sections

- [Ala. Code § 40-23-1 Section 40-23-1 Definitions; Transactions Considered or Not Considered Sales](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-1.md)
- [Ala. Code § 40-23-1.1 Section 40-23-1.1 Limitations on the Extension, Expansion, or Modification of Exemptions; Rulemaking Authority](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-1.1.md)
- [Ala. Code § 40-23-2 Section 40-23-2 Tax Levied on Gross Receipts; Certain Sales Exempt; Disposition of Funds](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-2.md)
- [Ala. Code § 40-23-2.1 Section 40-23-2.1 Only One Municipal or County Sales, Etc., Tax Collected on Same Sale; Payment to Improper Locality](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-2.1.md)
- [Ala. Code § 40-23-3 Section 40-23-3 Exclusion of Certain Municipal Privilege License Taxes](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-3.md)
- [Ala. Code § 40-23-4 Section 40-23-4 Exemptions](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.md)
- [Ala. Code § 40-23-4.1 Section 40-23-4.1 Certain Drugs Exempt](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.1.md)
- [Ala. Code § 40-23-4.01 Section 40-23-4.01 Exemption or Rescission of County or Municipal Sales and Use Tax](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.01.md)
- [Ala. Code § 40-23-4.2 Section 40-23-4.2 Food Stamp Purchases Exempt](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.2.md)
- [Ala. Code § 40-23-4.3 Section 40-23-4.3 Exemption Form for Certain Agricultural Purposes](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.3.md)
- [Ala. Code § 40-23-4.4 Section 40-23-4.4 Exemption Form for Equipment for Certain Commercial Fishing Vessels](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.4.md)
- [Ala. Code § 40-23-4.5 Section 40-23-4.5 Products Processed or Produced Under Chapter 2A of Title 20 Excluded from the Producer Value Added Sales and Use Tax Exemption](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.5.md)
- [Ala. Code § 40-23-4.6 Section 40-23-4.6 Exemption for Agricultural Fencing Materials](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.6.md)
- [Ala. Code § 40-23-4.7 Section 40-23-4.7 Exemption for Honeybees, Honeybee Inputs, and Honeybee Byproducts](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-4.7.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C23_S40-23-3. Check the current official text before relying on it. Not legal advice.