Alabama Sales Tax on Trade-Ins Alabama: Sales Tax Handbook

Alabama:

Are Trade-Ins subject to sales tax?

While Alabama's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of trade-ins in Alabama. To learn more, see a full list of taxable and tax-exempt items in Alabama.


General Trade-Ins
TAXABLE
In the state of Alabama, exclusion is definitely allowed for certain items, for example parts, vehicles, trailers, and agricultural machinery.



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Source: http://www.salestaxhandbook.com/alabama/sales-tax-taxability/trade-ins