Taxes

Revenue Discovery Systems (RDS) administers the taxes below for the City of Opelika. If you have questions, please contact RDS at 800-556-7274. Payment for these taxes are to be remitted to:
Sales Tax Division
P.O. Box 830725
Birmingham, AL 35203

Sales Use Tax

  • Consumers are to pay sales tax on retail sales of tangible personal property.
  • Businesses act as an agent to the city by collecting these taxes from consumers and remitting it to the city.
  • Use tax is due from the business or individual on items purchased for use in the city from vendors located outside the city and for which a local city sales/use tax has not been paid.
  • Sales/use tax reports are due on or before the 20th of the month succeeding the period for which the tax accrues. (Discounts are allowed if tax is paid before the 20th day of the month in which it’s due.)
  • After the 20th of the month, penalties and interest will be assessed.
  • Businesses are required to file a return each period even if no taxes are collected.

Rental & Leasing Tax

  • Persons renting or leasing personal property must remit a fee of 2.5 percent of gross receipts derived from the lease of rental property.
  • Rental and leasing reports are due on or before the 20th of the month succeeding the period for which the tax accrues.
  • After the 20th of the month, penalties and interest are due.
  • Businesses are required to file a return each period even if no taxes are collected.

Lodging Tax

  • A lodging tax of 7 percent of the rental charges is applied to a business renting or furnishing rooms, lodgings or accommodations to transients for periods of less than 30 continuous days.
  • Taxes also apply to charges of personal property used or furnished in rooms, lodging or accommodations.
  • Lodging tax is due on the 20th of month for which tax is accrues.
  • After the 20th of the month, penalties and interest will be assessed.
  • Businesses are required to file a return each period even if no receipts are earned.
  • Businesses or individuals furnishing rooms, lodgings or accommodations must have an Opelika business license.

Cigarette Tax

  • Businesses or individuals selling, storing or delivering cigarettes in the city limits must pay a tax equal to four cents per pack.
  • Stamps are sold in rolls containing 15,000 stamps and each roll is $600 (10 percent discount allowed if payment accompanies order).
  • Businesses or individuals selling, storing or delivering cigarettes must have an Opelika business license.

Liquor Tax

  • In addition to alcoholic beverage license, there is a license tax of 3 percent of the gross receipts of all such business derived from the sale of all alcohol beverages, except wine and beer.
  • There is also a wholesale wine tax report due by the 15th of each month. The tax is $0.07 per liter.

Gasoline Tax

  • Wholesalers selling motor fuels in the city must pay a motor fuel tax of $0.02 per gallon.
  • Taxes are due on or before 20th day of month succeeding the period for which tax accrues.
  • After the 20th of the month, penalties are due.
  • Businesses are required to file a return each period even if no motor fuels are sold in the city.
  • Businesses or individuals selling motor fuels must have an Opelika business license.