The purpose of this publication is to inform the licensee of other licensees in good standing to whom they may either sell or purchase motor fuels on which the excise tax has not been paid.  A licensee may not sell, trade, or transfer motor fuels to a cancelled licensee or non-licensed distributor, wholesaler, dealer, or user unless the appropriate excise tax has been paid. To do so may incur an additional tax liability for the licensee. The licensee is responsible for collecting the excise tax on sales to a distributor whose license has been cancelled. If the licensee is uncertain of the appropriate excise tax to collect, he/she should contact the Motor Fuels Section to verify if an account is active and the appropriate tax rate by calling (334) 242-9608 or writing the Alabama Department of Revenue, Business & License Tax Division, Motor Fuels Section, P. O. Box 327540, Montgomery, AL  36132-7540.  It is the responsibility of the licensee to ensure that all entities to whom he sells tax-free gasoline and/or motor fuel are properly licensed with the Alabama Department of Revenue.

Licensee information will appear in the following order:  license type and number; name; city; state; and the effective date of the license.

The type of motor fuel license, preceding the license number, is indicated by the prefixes “G”, “MF”, or "AV"

"G"	Indicates a gasoline license. Holders of this license may purchase and sell tax-free gasoline, motor fuel, aviation fuels, and blendstock products.
"MF"	Indicates a motor fuel (diesel) license. Holders of this license may purchase and sell only tax-free motor fuel.
"AV"	Indicates an aviation license. Holders of this license may purchase and sell only tax-free aviation fuels.

Distributors who suspect fuel tax evasion may call the Department of Revenue’s HOT LINE at: 1-800-382-7466 or 1-800-EVASION.

ATTENTION - TAX LAWS!

NOTICES

NATIONAL FUEL DIVERSION REGISTRY

Effective July 1, 2006, the National Fuel Diversion Registry phone-in diversion registration system currently utilized by the Department of Revenue will be replaced by the TRAC III web-based diversion registration system.

In order to register a diversion of fuel, go to www.trac3.net, click on “registration”, enter requested company data (for the initial registration only) and follow the simple steps. The TRAC III database will maintain basic company name and address information for carriers and fuel marketers after the initial diversion registration. A drop-down box for Federal Terminal Code Numbers (TCN’s) is provided to assist in diversion registration. Diversion registration information can easily be verified by selecting the “Confirm” option. The diversion of the fuel must be obtained prior to delivery of the fuel in Alabama.

The current National Fuel Diversion Registry phone-in diversion registry system will be operated simultaneously with the new web-based TRACII system for the month of June 2006, to allow for a one-month transition period. As of July 1, 2006, all diversions must be registered with the TRAC III system.

SHIPPING DOCUMENT REQUIREMENTS

Section 40-12-198(b), Code of Alabama 1975, requires that all persons transporting gasoline and motor fuel products and all persons receiving these products maintain a copy of the terminal issued shipping document which sets out on its face the destination state.

Sections 40-12-198(c), Code of Alabama 1975, provides that “Every person transporting in Alabama gasoline received from a terminal operator or refiner shall provide the original or a copy of the terminal issued shipping document accompanying the shipment to the operator of the retail outlet to which delivery of the shipment was made.”  It is the position of the Department of Revenue that any licensed distributor or carrier who picks up fuel from a terminal or refinery and delivers the fuel directly to the retail outlet must leave a copy of the terminal issued shipping document.  In the event that the terminal does not provide enough copies of the bill of lading, the bill of lading number must be written on the face of the shipping document left at the retail outlet at the time of delivery.  The carrier must then return a copy of the terminal issued bill of lading to the retail outlet with the retail outlet receiving it within five (5) days of delivery of the fuel.

In accordance with the provisions of Section 40-12-198(d), Code of Alabama 1975, the retail outlet is required to retain a copy of the shipping document at the retail outlet to which the fuel was delivered for a period of thirty (30) days.  After the thirty (30) day period, the shipping document shall be maintained with the required books and records for a period of three (3) years from the date of shipment.

Code Section 40-12-198(f) requires that the shipper or the shipper’s agent contact the Alabama Department of Revenue before gasoline or motor fuel is diverted from the original destination state.  The new telephone number to report diverted fuel is 1-888-367-1600.

BLENDSTOCK

Products which are blended with gasoline should be reported on the gasoline excise tax return. Therefore, persons who wish to buy or sell these products excise tax-free must qualify for an Alabama gasoline license.  Blendstock products should no longer be reported on the motor fuel excise tax return.

AVIATION FUEL TAX RATES

Effective September 1, 2010, the aviation tax rates per gallon are:

Aviation Gasoline	$.03
Jet or Turbine Fuel	$.01

LUBRICATING OIL EXCISE TAX

Distributors are reminded that pursuant to Section 40-17-171, Code of Alabama 1975, the lubricating tax is due on all lubricating products that are sold, distributed, or withdrawn from storage for any use. Therefore, product that is given away is subject to the lubricating excise tax. Distributors who are uncertain of the appropriate tax to charge should contact the Alabama Department of Revenue. A list of lubricating oil permit holders and permit numbers are in the back of this booklet.

STATEMENT OF GROSS SALES (WHOLESALE OIL LICENSE)

Taxpayers should not include the federal, state, or local excise taxes in the computation of the gross sales amount. Section 40-17-174, Code of Alabama 1975, states that, “The initial wholesale transaction shall be the only point at which the wholesale oil license fee is imposed on the oils sold in the state, the intent being that the tax shall be paid to the state but once.”

The following first sale transactions should be included in the computation of the wholesale oil license: Illuminating oils: Kerosene and illuminating oils Lubricating oils: Lubricating oils, greases, transmission fluid, Slick 50, and any substitutes Fuel oils: Tax-free diesel fuel, heating oil, burner oil, and bunker “C” Undyed diesel fuel should be excluded from the gross sales computation under the following circumstances:   1. Undyed diesel fuel is sold tax-paid and you remit the motor fuel excise tax to the State of Alabama. or       2. Undyed diesel fuel is sold tax-free to a licensed distributor for whom you are the “sole” supplier. This licensed distributor must remit the motor fuel excise tax to the State of Alabama and list you as only supplier on the motor fuel excise tax returns.  If so, you are responsible for obtaining and keeping copies of that customer’s monthly State of Alabama motor fuel excise tax returns in your files.

ELECTRONIC FUNDS TRANSFER TAX PAYMENT PROGRAM

Effective October 1, 2006, Act No. 2006-552 specified that for each occasion a business taxpayer is obligated to make a payment of $750 or more to the Department of Revenue such payment must be remitted electronically through an electronic funds transfer (EFT) method. The Department has implemented a new “Make Payment Only” enhancement giving taxpayers the capability to make electronic payments. To make your payments online, simply visit our website at www.revenue.alabama.gov/efiling.htm, or use our automated telephone system by calling 1-800-828-1727. There is no pre-registering required to use this free service.

BULLOCK COUNTY

Effective March 1, 2010 the Department of Revenue was authorized by the Bullock County Commission to begin administering the gasoline and motor fuel excise taxes for Bullock County. The excise tax is imposed on persons selling, distributing, storing or withdrawing from storage for any purpose whatever, gasoline or motor fuel within the county at a rate of three cents per gallon and requires every distributor, retail dealer or storer of gasoline or motor fuel to pay such excise taxes upon the selling, distributing or withdrawing from storage for any use, gasoline and motor fuel pursuant to and in accordance with the provisions of Act 87-100, 1987 Regular Session of the Alabama Legislature. Forms may be secured from the Business & License Tax Division, P. O. Box 327540, Montgomery, Alabama 36132-7540.

CULLMAN COUNTY
This Act provides that the Cullman County Commission can levy a privilege tax of one (1) cent per gallon on persons, corporations, copartnerships, companies, agencies, associations, and refiners engaged in the business of selling, delivering, withdrawing from storage, or keeping in storage for sale or delivery in Cullman County, gasoline, naphtha, other motor fuels, and their substitutes. This tax shall not apply to products known commercially as kerosene oil, fuel oil, or crude oil commonly used for lighting, heating, or industrial purposes. Furthermore, the tax does not apply to diesel oil, tractor fuel, gas oil, distillate, liquefied gas, kerosene, or jet fuel. The exemptions from this tax are sales to the United States government, sales to city and county governing bodies, sales to city and county boards of education, sales to private and church schools that offer essentially the same curriculum as grades K-12, sales to the National Guard, sales to the Alabama Institute for the Deaf and Blind, sales to the Department of Youth Services, and sales to be used in aircraft, ships, vessels, barges, locomotives, railroad equipment, off-road vehicles, and for agricultural purposes. The Alabama Department of Revenue has been authorized by Act 92-249 to administer this tax beginning June 1, 1992. Forms may be secured from the Business & License Tax Division, P.O. Box 327540, Montgomery, AL 36132-7540.

LOWNDES COUNTY
This Act provides that Lowndes County Commission can levy an excise tax of two (2) cents per gallon on all persons, corporations, copartnerships, companies, agencies, and associations engaged in the business of selling, distributing, storing, or withdrawing from storage in Lowndes County, for any purpose whatsoever, gasoline, motor fuel, and their substitutes. This tax shall not apply to the sale of gasoline or motor fuel in interstate commerce, and if the tax has been paid once by a distributor, retail dealer, or storer such payment shall be sufficient. The exemptions from this tax are sales to the State of Alabama or any agency thereof, county governing agencies, municipalities, and boards of education. The Alabama Department of Revenue has been authorized by the Lowndes County Commission to administer this tax beginning October 15, 1988. Forms may be secured from theBusiness & License Tax Division, P.O. Box 327540, Montgomery, AL 36132-7540.