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Alabama Terminal Tax

  • Alabama Terminal Tax



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Instructions For Mandatory Electronic Filings Of Terminal Tax

Act 2011-565

Effective October 1, 2012, this act changes the level of taxation from the distributor level to the terminal rack or upon import into Alabama. The point of taxation will be imposed as follows:

  • When removed: from the bulk transfer/terminal system in this state; from a bulk transfer/terminal system outside this state for delivery into this state; and upon sale or transfer in a terminal in this state to a person not licensed as a supplier.
  • At the time motor fuel is imported into this state, except when importation is by bulk transfer.
  • Tax is collected from the supplier, as shown on terminal records, when fuel is removed from a terminal or refinery in this state.
  • Tax applies to fuel blended in this state and is calculated on the difference between the total quantity blended and the quantity used for blending but previously taxed.
  • Terminal operators are jointly and severally liable with the supplier for fuel removed from a terminal in this state when removal is on account of any unlicensed supplier.