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 or supplier must issue and maintain a sales record for each sale of gasoline or motor fuel product. The sales record must be serially numbered and shall contain the following information:

(a) The name and address of the distributor or supplier,

(b) The date of sale,

(d) The machine-printed destination state,

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

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

(g) The amount of excise tax or other taxes, such as sales tax, charged. The amount of excise tax 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 on motor fuel is not subject to any other excise tax levied by the state such as sales tax, and

(h) The location/destination where the fuel is delivered if other than purchaser's physical location.

(2) If a licensed distributor sells undyed motor fuel tax-free to an exempt entity, the sales record 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."

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

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

(5) 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. 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.

(6) Every person transporting in Alabama gasoline received from a location other than a terminal or refinery shall set out on the face of the shipping document the following statement: "Delivery From Bulk Plant."

(a) If the distributor picks up product from a facility other than his own bulk plant, the shipping document must state where the product originated. Statements must be machine-printed.

(7) All shipping documents, as defined in Section 40-12-190, Code of Alabama 1975, must show a machine-printed destination state. A handwritten or ink pad stamped destination state is unacceptable. Failure to have a machine-printed destination state on the shipping documents, could result in penalties provided in Title 40, Chapter 12, Code of Alabama 1975.

(Sections 40-2A-7(a)(5), 40-17-18 and 40-17-125, Code of Alabama 1975) (Effective June 3, 1996, amended December 13, 1999)