Receipt for Credit
Obtaining a Receipt for Credit
In order to receive a Receipt for Credit, one of the following criteria must be met:
- Selling of a vehicle (bring copy of bill of sale, tag or tag receipt)
- Trading of a vehicle and purchase of a new one (bring copy of bill of sale, tag or tag receipt)
- Total destruction of a vehicle (bring letter from insurance company with complete vehicle description information, VIN, the date vehicle deemed a total loss, on company stationery, signed by the agent)
- Theft without recovery (bring letter from insurance company with complete vehicle description information, VIN, on company stationery, signed by the agent)
- Or removed from the state before renewal date (bring copy of out of state registration, previous Alabama registration, original Power of Attorney form, completed and notarized, and the original Credit Voucher Affidavit)
- Since property tax on vehicles is collected in advance when customers purchase or renew their tags, customers can receive a Receipt for Credit for prepaid taxes when they sell or trade a vehicle before the next renewal date. Proper documentation is required for any Receipt for Credit.
- In no event shall a receipt for credit or credit voucher be issued later than twelve months after the date a motor vehicle is sold, traded, totally destroyed, permanently removed from Alabama, or stolen without recovery.
- Credit voucher must be redeemed immediately at the time a customer registers a vehicle.
- If the credit voucher exceeds the amount of tax due or cannot be applied to a tag bill, any balance can be refunded to the customer through a Receipt for Credit. Checks for credit are processed by the 20th of the following month. The law calls for the issuing office to collect a $2.00 redemption fee on credit vouchers and receipts for credit checks.
- Credit Vouchers can only be used on the tax portion of the tag bill.
- Receipt for credit and credit voucher must be redeemed in the county where the tax was originally paid.
- If a customer has moved to another Alabama county and sold a vehicle, a receipt for credit will be issued for any unapplied pre-paid taxes in Mobile County.
- If a customer moves and registers his/ her vehicle in another Alabama county, no credit is issued.
- If a customer moves out of state, credit will be issued.
- A credit voucher can be transferred to an immediate family member who qualifies as a dependent.
Alabama Legislative Act #2010-268
Late fees are $15.00 plus interest and cannot be waived.