WHAT
KINDS OF TAXES ARE ADMINISTERED BY THE MOTOR FUELS SECTION?
The excise taxes administered are: gasoline, motor fuel, aviation, statement
of gross sales (wholesale oil license), lubricating oil, scrap tire environmental fee, motor carrier mileage tax, and local excise taxes
for Bullock County, Cullman County, Jackson County, and Lowndes County.
DOES
SOMEONE WHO EXPORTS FUEL FOR SALE IN ANOTHER STATE HAVE TO BE LICENSED IN ALABAMA?
Yes, in order to purchase fuel tax-free in Alabama, a license is required.
WHERE
CAN I GET INFORMATION ON THE ALABAMA UNDERGROUND AND ABOVEGROUND STORAGE TANK
TRUST FUND ACT?
The Alabama Underground and Aboveground Storage Tank Trust Fund is administered
by the Tobacco Tax Section of the Business & License Tax Division. For
more information regarding the Act, click
here.
WHEN
ARE THE TAX RETURNS DUE?
Gasoline, motor fuel, lubricating oil, local counties, scrap tire environmental fee, and aviation are due
on the 20th of each month while the statement of gross sales is an annual return
that is due on October 14th of each year. Motor carrier mileage tax is due on the 15th of each month.
IF
THE 20TH FALLS ON A WEEKEND OR A HOLIDAY, WHEN IS THE DUE DATE?
The return must be postmarked on or before the next business day. If you remit
payment by EFT, then your payment must be
initiated on or before the due date.
HOW DO I APPLY FOR A LICENSE FOR GASOLINE, AVIATION, MOTOR FUEL, AND LUBRICATING
OIL?
Call the Motor Fuels Section at (334) 242-9608 and speak with a representative
of the Section, who will ask questions to determine what kind of license and
reporting forms are needed. Forms
are downloadable.
WHAT
IS THE TAX RATE?
The rate is $.06 per gallon.
WHAT
PRODUCTS ARE INCLUDED?
Any product that performs a lubricating function, i.e. grease, transmission
fluid, motor oil, and Slick 50.
IS
THE TRACTOR HYDRAULIC/TRANSMISSION FLUID SUBJECT TO THE EXCISE TAX OR SALES
TAX?
Excise taxable, because the primary function is to lubricate the engine and
gears.
HOW
DO I CONVERT POUNDS TO GALLONS?
Divide the total pounds by 8.
IS
LUBRICATING OIL BOARDED ON A VESSEL AT THE PORT OF MOBILE TAXABLE?
If it is sold from one permit holder to another it is not taxable. If it is
sold to an unlicensed entity, it is considered taxable. The Port of Mobile is
considered to be a part of the State, so title would be changing in Alabama.
WHAT
IS THE TAX RATE?
The rate is $.16 per gallon upon the selling, use or consumption, distributing,
storing or withdrawing from storage in this state for any use of gasoline, naphtha,
and other liquid motor fuels commonly used in internal combustion engines.
DOES
A GASOLINE LICENSE AND BOND COVER OTHER PRODUCTS?
Yes, gasoline, diesel, and aviation fuel.
DOES
AN ENTITY NEED TO BE LICENSED TO SHIP GASOLINE VIA PIPELINE THROUGH THE STATE?
A license is not required for shipments going through Alabama as long as title
does not change within Alabama.
CAN
A LICENSED DISTRIBUTOR SELL GASOLINE $.04 TAX EXEMPT TO A FARMER FOR AGRICULTURAL
PURPOSES?
No, the farmer is eligible to apply for an annual refund of $.11 per gallon.
ARE
SALES TO INDEPENDENT AGENCIES OF A CITY OR COUNTY GOVERNMENT EXEMPT FROM THE
GASOLINE EXCISE TAX?
No, only the agencies that are part of a city or county governing body are exempt.
IS
A LICENSED DISTRIBUTOR ALLOWED A DISCOUNT WHEN THE TAX DUE IS NOT TIMELY PAID?
No, Section 40-17-38, Code of Alabama 1975
provides that the discount is lost when the tax is not timely paid.
WHAT
ARE THE QUALIFICATIONS FOR AN ENTITY WHEN APPLYING FOR A GASOLINE LICENSE?
Regulation 810-8-1-.01 provides the following:
| Any person, firm or corporation that imports gasoline into the State of Alabama for distribution, storage, or use, or |
| Any person who maintains 50,000 gallons of bulk storage, not at the retail level, and sells in part or in whole at wholesale, or |
| Any person who sells in part or in whole at wholesale to ten retail outlets, or |
| Any person who sells in part or in whole at wholesale and who maintained average sales of 100,000 gallons of gasoline per month during the previous calendar year. |
CAN
AN EXEMPT ENTITY, SUCH AS A CITY GOVERNMENT, RECEIVE A REFUND OF TAX PAID AT
A RETAIL OUTLET?
No, only licensed distributors can sell tax-free to exempt entities.
WHAT
IS THE TAX RATE ON MOTOR FUEL?
Effective October, 1, 2004, the tax rate is $.19 per gallon upon the receipt
from a terminal, refinery, barge, barge line, or pipeline terminal in this state
or upon import into this state by any means other than pipeline, marine vessel,
or the fuel supply tank of a vehicle.
CAN
STATE, CITY, AND COUNTY GOVERNMENTS USE DYED FUEL ON THE ROAD?
City and county governments can but the State cannot unless the tax is paid.
SINCE
KEROSENE IS AN UNDYED MOTOR FUEL PRODUCT, IS IT REQUIRED TO BE REPORTED ON THE
MOTOR FUEL TAX RETURN?
No, kerosene is not reported unless blended with undyed diesel fuel.
CAN
A LICENSED DISTRIBUTOR APPLY FOR A REFUND ON HIS UNDYED DIESEL FUEL SALES FOR
OFF-ROAD USE?
No, only the end user can apply for a refund.
WHAT
IS CONSIDERED "AVAILABLE" FOR PURCHASING UNDYED FUEL TAX-FREE FOR
AGRICULTURAL PURPOSES?
If the distributor's supplier does not have dyed fuel then it is deemed unavailable
and undyed fuel can be sold to the farmer tax-free. It does not matter if the
product is delivered by the distributor or picked up by the customer.
IF
UNDYED FUEL IS INADVERTENTLY DROPPED ON TOP OF DYED FUEL, CAN A DISTRIBUTOR
RECEIVE A REFUND?
No, the discount provided in Section 40-17-290,
Code of Alabama 1975, partially defrays the cost of loss incurred while
handling the fuel.
CAN
A DISTRIBUTOR APPLY FOR A REFUND OF THE MOTOR FUEL TAX IF THE PRODUCT WAS PURCHASED
IN TENNESSEE OR FLORIDA WHERE THE LAW REQUIRES THE TAX TO BE PAID AT THE TERMINAL?
No, there are no provisions for a refund to the distributor in the motor fuel
tax laws.
CAN
AN AIRPORT AUTHORITY QUALIFY FOR AN AVIATION LICENSE IN ORDER TO SELL TAX-FREE
TO THE U.S. GOVERNMENT?
No, in order to qualify for an aviation license you must be a distributor as
defined in Section 40-17-30(3), not a retail
dealer as defined in Section 40-17-30(5).
WHAT
LOCAL EXCISE TAXES DOES THE DEPARTMENT ADMINISTER AND WHAT ARE THE TAX RATES?
Click here to view the tax rates administered
by the Department of Revenue.
WHAT
RATE IS THE WHOLESALE OIL LICENSE FEE BASED ON AND HOW IS THE FEE COMPUTED?
The rate is 1/2 of 1% and is computed by multiplying the gross sales amount
on the initial wholesale sales of illuminating, lubricating oils, and/or fuel
oils by the rate of 1/2 of 1%.
ARE
SALES TO THE ULTIMATE CONSUMER EXEMPT?
Yes, this fee is only on sales made for resale.
ARE
THE INSPECTION FEE AND THE UNDERGROUND AND ABOVEGROUND STORAGE TANK CHARGE INCLUDED
IN THE COMPUTATION OF THE STATEMENT OF GROSS SALES FEE?
Yes, only federal, state, and local excise taxes are exempt. These two items
are not considered to be excise tax levies.
WHO
IS THE INITIAL WHOLESALE DEALER?
The first entity to sell product for resale in Alabama.
DO
I INCLUDE SALES OF GASOLINE ON THE STATEMENT OF GROSS SALES TAX RETURN?
No.
IF
I MANUFACTURE PRODUCT IN ALABAMA, DO I OWE THE WHOLESALE OIL LICENSE FEE ON
THE PRODUCT THAT I MANUFACTURE IN ALABAMA AND SELL TO SOMEONE WHO WILL BE RESELLING
THE PRODUCT?
No, the manufacturer would not include products manufactured in Alabama refineries
in the gross sales computation.
This page last updated November 8, 2011.