Tax Rates in Airport Annexation Take Effect March 1

Feb 13th, 2008

The city limits have expanded to include the airport property area described by the map below. Effective March 1, 2008 city sales and use tax must be collected on sales that close in the newly annexed area. These include sales at businesses located in the annexed area and goods that are delivered into the annexed area. The City Sales & Use Tax rate is 4%. The City tax rate on meals, foodstuffs consumed on the premises, beer, liquor, wine and alcoholic beverages is 5%. The City Motor Vehicle Rental Tax rate is 5.5%.

The City of Mobile police jurisdiction has also expanded. Effective March 1, 2008, police jurisdiction sales and use tax, which is 2% of gross receipts, must be collected on sales that close in the new police jurisdiction. These include sales at businesses located in the new police jurisdiction and goods that are delivered into the new police jurisdiction. Food and beverages are taxed at the 2% rate in the police jurisdiction.

School sales and use tax, which is collected at a rate of ½ cent, does not apply in the city limits of Mobile. Therefore, school sales and use tax is no longer due on sales that close in the expanded city limits

If you have any questions please contact the City of Mobile Revenue Department at (251) 208-7462 or email revenue.batch@cityofmobile.org.