ADOR - Motor Fuels Tax Rules

ALABAMA DEPARTMENT OF REVENUE

BUSINESS & LICENSE TAX DIVISION

MOTOR FUELS TAX RULE
810-8-1-.56. Sales Records of a Licensed Distributor.

(1) Every licensed distributor must keep a sales record showing each sale of motor fuel, the person to whom each sale was made and the address, the commodity sold, date and invoice number, gallonage, and value of each sale. The sales record must show the gallonage subject to excise tax and sold tax-free.

(2) The distributor shall prepare a serially numbered invoice for each sale of fuel whether the fuel is sold for highway use motor vehicles or for off-road use. A single invoice covering multiple deliveries of fuel made during a period of time not to exceed a calendar month shall constitute an invoice for each sale. If the multiple invoice includes taxed and tax-free sales, the taxed sales must be so designated. The invoice shall be delivered to the purchaser and a copy retained by the distributor.

(3) A sales invoice shall contain the following information:

(a) The name and address of the distributor,

(b) The date of sale,

(d) Whether the sale is a credit or cash sale,

(e) The number of gallons of motor fuel sold, the price per gallon and the total amount of the sale,

(f) The amount of excise tax or other taxes such as sales tax charged. The amount of excise tax charged need not be shown if the price per gallon includes the tax and the invoice so states. The excise tax on motor fuel is to be paid only once by the distributor or supplier and excise tax paid motor fuel is not subject to any other excise tax levied by the state such as sales tax, and

(g) The location/destination where the fuel is delivered if other than purchaser's business address.

(4) A sales invoice from a licensed distributor showing a purchase of excise tax-paid fuel constitutes a receipt for the purchaser of excise tax included on the invoice.

(a) If a licensed distributor sells undyed motor fuel tax-free to an exempt entity, the sales invoice must contain the following statement: "FUEL SOLD AT A TAX-EXCLUDED PRICE - WE CERTIFY THAT THE DIESEL FUEL DOES NOT CONTAIN VISIBLE EVIDENCE OF DYE."

(5) A sales invoice for dyed motor fuel must contain the following statement - "Dyed Diesel Fuel, Nontaxable Use Only-Penalty for Taxable Use".

(6) Records must be maintained in a form satisfactory to the department and shall be made available for inspection and audit by the department.

(7) All excise tax exempt sales which result in a credit on the excise tax return must have adequate documentation attached to the excise tax return and must be submitted to the Department of Revenue or the exemption will be disallowed. This information must also be maintained in the distributor's or supplier's office. Examples of adequate documentation are as follows:

EXEMPTIONS	DOCUMENTATION
Educational and Governmental Entities	Form MFD or listing of sales
$.04 exempt sales	Form MFD or listing of sales
U.S. Government	Listing of sales or invoices

If adequate documentation is not attached, the exemption will be disallowed and the distributor or supplier will be billed tax, penalty, and interest as provided for under Title 40 of the Code of Alabama 1975.

(Sections 40-17-9, 40-17-18 and 40-17-221(b), Code of Alabama 1975) (Effective June 3, 1996, amended December 13, 1999, Emergency Amendment effective January 5, 2000, expires May 3, 2000, amended May 15, 2000.)

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