ALABAMA DEPARTMENT OF REVENUE
BUSINESS & LICENSE TAX DIVISION
MOTOR FUELS TAX RULE
810-8-1-.24. Credit Card Sales at Retail
Outlets to Exempt Entities.
(1) For the purpose of this regulation, governing bodies of counties,
incorporated municipalities, boards of education, the Alabama Institute for
Deaf and Blind, the Department of Youth Services school district, and private
and church school systems, which offer essentially the same curriculum as offered
in grades K-12 in the public schools of this state, shall be known as the "exempt
entity." In addition, a licensed distributor is that person, copartnership,
firm, corporation, or association that has a valid Alabama Gasoline or Motor
Fuel License.
(2) A licensed distributor may claim a credit, on the monthly excise
tax return, for the number of gasoline or motor fuel gallons sold by a retail
outlet to the exempt entity provided the following conditions are met:
- (a) Pursuant to a contract with the licensed distributor, the
retail dealer supplies tax-paid gasoline or motor fuel to the exempt entity,
where such transaction is charged to a credit card issued by a licensed distributor,
- (b) The retail dealer is paid all applicable excise taxes along
with the price of the gasoline or motor fuel by the licensed distributor,
- (c) The exempt entity receives gasoline or motor fuel from a
retail dealer pursuant to a contract it has executed with the licensed distributor
and pays the licensed distributor for the product, net of tax,
- (d) The licensed distributor sells sufficient quantities of
gasoline or motor fuel for which the tax is due to be remitted directly to
the Department of Revenue during the reporting month to offset the quantities
of tax-paid gasoline or motor fuel sold to the exempt entity through a retail
dealer.
(3) A licensed distributor meeting the above conditions is deemed to have
sold tax-free gasoline or motor fuel directly to the exempt entity and may claim
a credit for the number of gallons sold on its monthly excise tax return.
(4) At no time shall the deemed tax-free gallons sold exceed the actual
other tax-paid gallons sold for the reported month. The credit claimed
for deemed tax-free gallons may not be carried back and/or forward to any month.
It must be reported for the month of the actual sale to the exempt entity.
(Sections 40-2A-7(a)(5) and 40-17-18, Code of Alabama 1975. Effective
August 14, 2003.)
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