On July 25, 1995, Governor Fob James signed into law Act 95-410 with the effective date of this Act being October 1, 1995.
Sections 40-17-2 and 40-17-220, Code of Alabama 1975, were amended to move the point of taxation for the Alabama excise tax to the terminal level. The $0.17 motor fuels excise tax is due upon the receipt of the motor fuel by the licensed distributor, by any means other than a transfer by a marine vessel or pipeline, of motor fuel from a terminal, refinery, barge, barge line, or pipeline terminal and upon import into this state by any means other than a transfer by a marine vessel or pipeline unless specifically exempted from the tax.
Pursuant to Act 95-410, every person transporting gasoline (gasoline, naphtha, and other liquid motor fuels) in Alabama in a highway vehicle other than its supply tank, shall carry on board a shipping document issued by the facility where the gasoline was obtained. The shipping document shall set out on its face the state of destination of the gasoline transported in the highway vehicle. Persons violating these provisions may be subject to a penalty of not less than $500.00 nor more than $1,000.00.
Code Section 40-12-198 was amended to require persons transporting gasoline received from a terminal operator or refiner to provide the original or a copy of the terminal issued shipping document to each retail outlet where a delivery of the shipment is made. Persons violating these provisions may be subject to a penalty of not less than $500.00 nor more than $1,000.00.
In addition, Code Section 40-12-198 was amended to authorize employees of the State of Alabama to inspect fuel tanks and detain vehicles to determine if the proper fuel taxes have been paid or if dyed product is being used over-the-highways. Persons using dyed fuel over-the-highways are subject to a penalty of the greater of $1,000.00 or $10.00 per gallon of the fuel involved.
Questions concerning this notice may be directed to the following: