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.
Code Sections 40-17-2 and 40-17-220 were amended to entitle persons who use undyed motor fuel in designated off-road vehicles, or off-road equipment (except marine use), or commercial marine use, as defined by the federal government, to a quarterly refund of the motor fuel excise tax. Please have your customers contact our office regarding a refund petition. The refund provision is only available on purchases of undyed motor fuel purchased after September 30, 1995.
In addition, Code Section 40-12-198 was amended to authorize employees of the State of Alabama, and city and county governments 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.
All deliveries of motor fuel products in Alabama must be accompanied by a shipping document that states Alabama as the state of destination. Retail outlets must retain the shipping document at the location at which the motor fuel was delivered for a period of thirty (30) days. At the end of the thirty (30) days, the shipping document must be maintained with the required books and records for a period of three (3) years from the shipment date.
Questions concerning this notice may be directed to the following: