Gasoline and diesel fuel sold at the terminal rack, imported into Alabama, or blended with a motor fuel product.

Gasoline: $0.30 per gallon effective July 1, 2025, Sections 40-17-325(a)(1) and 40-17-370, Code of Ala. 1975 (comprised of $0.07, $0.05, $0.06, and $0.12 levies).

Diesel Fuel: $0.31 per gallon effective July 1, 2025, Sections 40-17-325(a)(2) and 40-17-370, Code of Ala. 1975 (comprised of $0.13, $0.06, and $0.12 levies).

Section 40-17-329, Code of Ala. 1975, exempts the following:

• All motor fuel exported from this state for which proof of export is available in the form of a terminal issued destination state shipping document that is (a) exported by a supplier who is licensed in the destination state or (b) is sold by a supplier to a licensed exporter for immediate export to a state for which the applicable destination state motor fuel excise tax has been collected by the supplier who is licensed to remit the tax to the destination state. This exemption shall not apply to any motor fuel which is transported and delivered outside this state in the motor fuel supply tank of a highway vehicle.
• All K-1 Kerosene or aviation jet fuel that is produced at a refinery in this state and is either exported from this state directly by the operator of that refinery or is sold for immediate export by the operator to a licensed exporter. In either case proof of export is to be available in the form of a terminal destination state shipping document and in addition all relevant sales documents are to reference the product known as “K-1 Kerosene” or “aviation jet fuel” as applicable.
• All sales of dyed diesel fuel.
• Gasoline blendstocks or cellulosic biofuel when sold to (a) a licensed supplier or (b) a person who will not be using the blendstocks or cellulosic biofuel in the manufacture of gasoline or as a motor fuel, as evidenced by the exemption certificate prescribed under regulations promulgated under Section 4081, Title 26 of the United States Code.
• All motor fuel sold by a licensed supplier or licensed permissive supplier to an exempt agency electing to be licensed under Section 40-17-332, Code of Ala. 1975.
• Motor fuel that is delivered by a licensed supplier from one terminal to another terminal when ownership in the motor fuel has not changed, or by a licensed supplier from a terminal to a refinery operated by the licensed supplier.
• Having first paid the tax owed under Section 40-17-325, Code of Ala. 1975, a licensed aviation fuel purchaser shall have the right to apply to the department on a monthly basis for a refund of the taxes paid to the state of Alabama on the gallons of jet fuel sold to a certificated or licensed air carrier that purchases jet fuel within Alabama and uses the jet fuel to propel aircraft powered by jet or turbine engines operated in scheduled all-cargo operations being conducted on international flights or in international commerce.
• Having first paid the tax to its vendor, the entities listed below shall have the right to apply to the department for a refund on a quarterly basis for any purchases of motor fuel. (Note: These entities that have a Motor Fuel Exemption License may purchase tax-free from a licensed distributor or through a credit card issuer.)
  1. The United States government or any agency thereof.
  2. Any county governing body of this state.
  3. Any incorporated municipal governing body of this state.
  4. City and county boards of education of this state.
  5. The Alabama Institute for Deaf and Blind, the Department of Youth Services’ school district, and private and church school systems as defined in Section 16-28-1, and which offer essentially the same curriculum as offered in grades K-12 in the public schools of this state.
• Having first paid the tax owed under Section 40-17-325, Code of Ala. 1975, an exporter shall have the right to apply to the department on a monthly basis for a refund of the taxes paid to this state on the gallons of motor fuel that are ultimately exported by the exporter. ALDOR will require the exporter to provide proof of payment of the applicable destination state excise taxes before issuing a refund.

Certain counties and cities levy additional gasoline and diesel fuels taxes ranging from $0.005 to $0.09 per gallon.

Gasoline:

1.23% of the $0.07 and $0.05 levies, hereinafter referred to as the $0.12 levy, go to the Conservation Department.

35% of 1% of the $0.12 levy is credited to the Water Safety Fund and the Seafood Fund.

70% of 1% of the $0.12 levy is credited to the Game and Fish Fund.

18% of 1% of the $0.12 levy is credited to the Water Safety Fund and the Seafood Fund.

60% of the $0.05 supplemental tax goes to the State Road and Bridge Fund. Remaining 40% is distributed according to the 45%-55% pattern below.

The balance of the $0.12 levy and two-thirds of the $0.06 gasoline levy are distributed as follows:

• 45% to the State Road and Bridge Fund. The distributions to the Game and Fish Fund (70%) and the distributions to the Water Safety Fund and the Seafood Fund (18%) are deducted from the State Road and Bridge Fund.
• 55% to be shared by the counties and their municipalities as follows:
  1. 25% of the net tax proceeds are distributed equally to the 67 counties.
  2. 30% of the net tax proceeds are allocated to the 67 counties based on population.
     1. 10% of the counties’ share received shall be allocated to each municipality therein, based on a population ratio.
     2. Remaining portion to the county.

One-third of the $0.06 gasoline levy is distributed to the Inspection Fee Fund which is further distributed as follows:

• 5% or no less than $175,000, whichever is greater, to the Agricultural Fund.
  13. 87% of balance of proceeds distributed equally to the counties.
  14. $408,981 distributed to Department of Transportation Public Road and Bridge Fund.
  15. 76% of balance of proceeds allocated among the incorporated municipalities.
  16. 5% of balance of proceeds after distributions to (a) and (c) is distributed to Agricultural Fund.
  17. 5% of balance of proceeds after (a), (b), (c), and (d) or no less than

$87,500, whichever is greater, is distributed to ALDOR.

1975. Balance after (a), (b), (c), (d), and (e) is distributed to the Department of Transportation Public Road and Bridge Fund, as provided in Section 8-17-91, Code of Ala., 1975.

Rebuild Alabama Act – Section 40-17-371, Code of Ala. 1975.

$0.12 Levy Effective July 1, 2025

0.25% ALDOR (Administrative Fee)

$750,000 Alabama Hwy Finance Corporation (State Docks) 66.67% Department of Transportation (Rebuild Alabama Fund)

25% Counties

45% Counties equally

55% Counties population ratio 8.33% Cities

25% Cities equally

75% Cities population ratio

Motor Fuels:

The $0.13 and $0.06 levies are distributed as follows:

• $0.13 to Department of Transportation
• $0.06 as follows:
  1. .93% of net collections is allocated among the incorporated municipalities of the state and distributed as provided in Section 8-17-91(a)(2) c.
  2. 69% distributed equally among each of the 67 counties of the state monthly.
  3. Balance paid to the State Treasury to be used for highway purposes by the State Department of Transportation.

Rebuild Alabama Act – Section 40-17-371, Code of Ala. 1975.

$0.12 Levy Effective July 1, 2025

0.25% ALDOR (Administrative Fee)

$230,000 Alabama Hwy Finance Corporation (State Docks) 66.67% Department of Transportation (Rebuild Alabama Fund)

25% Counties

45% Counties equally

55% Counties population ratio 8.33% Cities

25% Cities equally

75% Cities population ratio