Section 40-17-220 Levy, collection, and remittance of tax; exemptions; credit or refund.
Section 40-17-220
Levy, collection, and remittance of tax; exemptions; credit or refund.
(a) There is hereby levied in addition to all other taxes of every kind now imposed by law an excise tax on gasoline and lubricating oil of $.04 per gallon, which shall be collected as herein provided.
(b) Every manufacturer, distributor, refiner, retail dealer, storer, or user of gasoline or lubricating oil shall collect and pay over to the state Department of Revenue an excise tax of $.04 per gallon upon the selling, use or consumption, distributing, storing, or withdrawing from storage in this state for any use of gasoline or lubricating oil as defined or otherwise referred to in this article, except gasoline and lubricating oil expressly exempted by the provisions of this article. Provided, that where any excise tax imposed by this section upon the sale, use or consumption, distribution, storage or withdrawal from storage in this state of gasoline or lubricating oil shall have been paid to the state by a manufacturer, distributor, refiner or by any retail dealer, storer, or user, the payments shall be sufficient, the intent being that the tax shall be paid to the state but once.
(c) The state Department of Revenue is hereby authorized to issue to the United States certificates of exemption, upon forms prescribed by the department, for use by the United States in purchasing gasoline or lubricating oil taxed by this section within the State of Alabama and which is paid for by the United States. Any person in reporting and paying the tax to the department may deduct the number of gallons of products taxed by this section sold to the United States, as shown by a certificate of exemption duly executed by the United States and filed with a report, and the department is authorized to adopt rules and regulations with respect to the issuance and use of these certificates.
(d) The following are expressly exempted from the provisions of this article:
(1) Gasoline and other fuel used to propel aircraft powered by reciprocating engines, any fuel used to propel aircraft powered by jet or turbine engines and lubricating oil used in such aircraft;
(2) Gasoline used to propel ships, vessels, barges, railroad locomotives, other railroad equipment, and lubricating oil used in ships, vessels, barges, railroad locomotives, and other railroad equipment;
(3) Gasoline and lubricating oil sold to be used for agricultural purposes;
(4) Gasoline and lubricating oil sold to governing bodies of counties and incorporated municipalities;
(5) Gasoline and lubricating oil sold to be used in off-road vehicles which presently do not require state licensing; specifically, but not limited to, forklifts and other like devices not for use on the streets and highways of this state;
(6) Gasoline and lubricating oil sold to city and county boards of education; and
(7) Gasoline and lubricating oil sold to 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, Alabama Institute for Deaf and Blind, and the Department of Youth Services.
(e) Every distributor or supplier shall collect and pay over to the state Department of Revenue an excise tax of $.06 per gallon upon the receipt, 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 in this state, or upon import into this state by any means other than pipeline, marine vessel, or the fuel supply tank of the vehicle, for any use of motor fuel not exempted by this article. Provided, that where any excise tax imposed by this section shall have been paid to the state by a distributor or supplier the payment shall be sufficient, the intent being that the tax shall be paid to the state but once. Motor fuel that is indelibly dyed and chemically marked in accordance with regulations issued by the Secretary of the Treasury of the United States under 26 U.S.C. §4082 shall be exempt from the tax imposed by this subsection.
(f) A licensed distributor may take a credit or request a refund pursuant to the provisions of Section 40-2A-7, for the following sales of motor fuel on which the tax has been imposed by this article:
(1) Motor fuel sold to the United States.
(2) Motor fuel used to propel aircraft powered by jet or turbine engines.
(3) Motor fuel sold to governing bodies of counties and incorporated municipalities.
(4) Motor fuel sold to city and county boards of education.
(5) Motor fuel sold to the Alabama Institute for Deaf and Blind, the Department of Youth Services school district, and to 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.
(6) Motor fuel sold as kerosene for lighting or heating purposes.
(7) Motor fuel that is sold from one Alabama licensed distributor to another Alabama licensed distributor.
(8) Motor fuel which is exported by the licensed distributor.
(9) Motor fuel used for off-road agricultural purposes on the farm.
(g) The use of motor fuel on which the tax has been imposed and paid under the provisions of this article shall be exempt from the tax imposed by this article and the user shall be entitled to a refund when motor fuel is used in designated off-road vehicles, or other off-road equipment (except marine use), or for commercial marine use as defined by the federal government or for any of the uses described in subsection (f). The end user shall be entitled to apply for a refund on a quarterly basis for excise taxes paid according to the provisions of this article, subject to the following limitations:
(1) Applications for refund shall be completed by the end user on forms prescribed by the Commissioner of Revenue and sworn to by the applicant before some officer authorized to administer oaths.
(2) The statute of limitations for filing refunds is within three years of the date that the motor fuel was purchased.
(h) Any applicant for the refund of the taxes levied herein who willfully files an inaccurate petition or false claim for a refund shall be subject to a penalty of 100% of the refund claimed, along with interest assessed according to the provisions of Section 40-1-44.
(i) Notwithstanding the foregoing provisions of this section, all motor fuel used by off-road equipment used for agricultural purposes shall be exempt from the tax imposed by this article at the time of sale. Provided, however, clear motor fuel shall only be sold for such purposes if no dyed motor fuel is available from the agricultural users supplier.
(j) Any person shall pay to the Department of Revenue an excise tax of $.06 per gallon, on:
(1) Motor fuel which was allowed as a credit under the provisions of this article which is sold for a use not allowed as a credit by the provisions of this article.
(2) Motor fuel on which no tax has been paid under the provisions of this article when it is used to operate a highway vehicle not exempted under the provisions of this article.
(3) Motor fuel on which tax imposed by this article has been refunded when it is used to operate a highway vehicle not exempted under the provisions of this article.
(4) Dyed motor fuel used to operate any on-road vehicles other than city and county vehicles or used in marine craft not used for commercial purposes.
(Acts 1980, No. 80-427, p. 590, §1; Acts 1981, No. 81-787, p. 1379; Acts 1987, No. 87-553, p. 854, §3; Acts 1995, No. 95-410, p. 881, §1; Act 2004-546, §1.)