City of Vernon, Alabama raises local sales tax rates

Effective October 1, 2025, the City of Vernon increased several local sales tax rates — including general sales, vending machine sales, vehicle sales, and farm/manufacturing equipment. Sellers with transactions in Vernon will need to adjust rates.

Alex_Lamachenka_TaxCloud

Written by Alex Lamachenka

Head of DemandGen

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Published

TL;DR

Vernon, Alabama just raised several of its local sales and use tax rates — including general sales, vending machine sales, vehicle sales, and farm/manufacturing equipment. If you sell into Vernon, your tax settings need to be updated.

What changed

The City of Vernon increased local tax rates across multiple categories effective October 1:

  • General sales and use tax: 3% → 4%
  • Admissions and entertainment: 3% → 4%
  • Food sold via vending machines: 3% → 4%
  • Farm and manufacturing equipment: 1.5% → 2%
  • Automotive vehicles and trailers: 1% → 2%

All other city tax rates remain unchanged.

Who this affects

  • Retailers and remote sellers making taxable sales into Vernon
  • Auto and trailer dealers
  • Vending machine operators
  • Manufacturers and farm equipment vendors
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If you use TaxCloud

Why it matters

Local rate changes may seem small, but they can cause real issues if your system doesn’t update. A 1% increase across multiple categories can create invoice errors, compliance risk, and downstream tax filing headaches.

Next steps for sellers

  • Check if you’re collecting tax on any affected categories in Vernon
  • Update rate tables manually — or confirm your provider (like TaxCloud) has already done it
  • Recalculate taxes on any Q4 invoices that fall into the affected categories
  • Monitor other Alabama municipalities for similar updates

Official sources:

  1. 1.
    Alabama Department of Revenue Source link