In order to receive a Receipt for Credit (
Click Here for the form) 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.
- New regulations require a credit voucher to 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.
- Under the new law, a credit voucher can be transferred to an immediate family member
who qualifies as a dependent.