Title 40

If an out-of-state vehicle comes to a propane dealer or supplier in the State of Alabama to purchase fuel, the dealer must collect in lieu of any fees levied by this chapter an amount equal to the current Alabama motor fuel tax in effect as prescribed by subdivision (a)(2) of Sec…

Any vehicles of the classes described in Section 40-17-160 owned by the state, county, or any incorporated municipality or agency, or instrumentality thereof, or any vehicle not requiring a license plate or motor vehicle license, including but not limited to forklift trucks and a…

(a) The Legislature of Alabama makes the following findings and statements: (1) The reduction of the dependence on foreign oil is necessary to reserve and protect our national security. (2) Reliable and affordable energy is of great importance to all sectors of Alabama’s economy.…

The Legislature declares that the intent of this article is to establish an efficient, standardized motor fuel tax collection and enforcement system for the collection of the excise tax on compressed natural gas and liquefied natural gas. (Act 2017-229, §2.)

For the purposes of this article, the following terms shall have the following meanings: (1) COMMISSIONER. The Commissioner of the Department of Revenue. (2) COMPRESSED NATURAL GAS or CNG. Natural gas compressed to a pressure at or above 200-248 bar (i.e., 2900-3600 pounds per sq…

(a) A licensed public seller of compressed natural gas or liquefied natural gas or the licensed fleet producer of compressed natural gas or liquefied natural gas may deduct the number of gallons of compressed natural gas or liquefied natural gas sold or disbursed to the following…

(a) Each licensed public seller or licensed fleet producer shall file the monthly return required herein, in a format prescribed by the commissioner, on or before the 20th day of each calendar month for the preceding month. (b) The tax levied by this article shall be paid to the …

(a) Each return required to be filed under this article shall be on forms and by means prescribed by the commissioner and furnished by the department and shall contain any information the department considers necessary for the enforcement of this article. (b) The report must cont…

All tax payments due to this state that are received by a licensed public seller or a licensed fleet producer shall be held by the licensed public seller or the licensed fleet producer as trustee in trust for this state, and the licensed public seller or licensed fleet producer h…

Each person required to be licensed under this article shall keep and maintain records of all purchases of natural gas, all sales or disbursement records, and other pertinent records and papers required by the department for the reasonable administration of this article for a per…

All excise taxes and fees collected under this article, less refunds and administrative fees for costs of collection, shall be paid into the State Treasury and distributed in accordance with Section 40-17-361(a). (Act 2017-229, §2.)

(a) Each person who engages in any business activity for which a license is required by this article without having first obtained and subsequently retained a valid license shall be subject to the following civil penalties: (1) Ten thousand dollars ($10,000) for the first violati…

(a) Any person who willfully does any of the following is guilty of a Class A misdemeanor, but shall be fined not less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000): (1) Fails to obtain a license as required by this article prior to enga…

There is appropriated from the Road and Bridge Fund to the Department of Revenue, for the fiscal year ending September 30, 2018, the department’s actual cost to implement and administer this article. Every year thereafter as a first charge against the revenues collected under thi…

The commissioner may adopt rules necessary to effectuate the reporting, collection, administration, and enforcement of the taxes imposed under this article. The commissioner shall prescribe the forms or format for reporting the information required in this article. (Act 2017-229,…

(a) There is hereby levied a reduced rate excise tax on compressed natural gas (CNG) and liquefied natural gas (LNG) in an amount of $.08 per GGE or DGE effective October 1, 2018. Effective October 1, 2023, the reduced rate excise tax on compressed natural gas (CNG) and liquefied…

Each application for a license under this article must be made upon a form prescribed by the commissioner and furnished by the department. (Act 2017-229, §2.)

Each person engaged in business in this state as a public seller of CNG/LNG or a fleet producer of CNG/LNG shall first obtain a public seller of CNG/LNG or a fleet producer of CNG/LNG license. The application fee for a public seller of CNG/LNG or a fleet producer of CNG/LNG licen…

(a) Upon approval of the application by the department, the applicant must file with the department a surety bond. The bond amount for an applicant for a license as a public seller of CNG/LNG or a fleet producer of CNG/LNG shall be a minimum of twenty-five thousand dollars ($25,0…

(a) The department may refuse to issue a license under this article if the applicant or a principal of the applicant has done any of the following: (1) Had a compressed natural gas or liquefied natural gas license or registration issued by this state or another state cancelled fo…

Upon approval of the required bond, the department shall issue the license to the applicant. The license is not transferable and remains in effect until surrendered or cancelled. (Act 2017-229, §2.)

(a) A licensee who discontinues in its entirety the business for which a license was authorized by this article shall notify the department in writing at least 10 days prior to the time the discontinuance, sale, or transfer takes effect and shall surrender the license to the depa…

(a) In accordance with Chapter 2A, the department may cancel any license required under this article, upon written notice sent to the licensee’s last known address as it appears in the department’s files, for any of the following reasons: (1) Filing by the licensee of a false rep…

For the purpose of this article, the following terms shall have the meanings respectively ascribed by this section: (1) LUBRICATING OIL. Any devices or substitutes therefor, commonly used in lubricating or oiling engines, bearings, journals, axles, hubs, and other parts of machin…

Every distributor, manufacturer, retail dealer, or storer of lubricating oil, as herein defined, shall pay an excise tax of $.02 per gallon upon the selling, distributing, or withdrawing from storage in this state for any use lubricating oil as herein defined; provided, that this…

Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and the management of the said department shall be deducted, as a first charge thereon, from the taxes collecte…

The excise tax imposed by this article shall apply to persons, firms, corporations, dealers, or distributors storing lubricating oil and distributing the same or allowing the same to be withdrawn from storage, whether such withdrawals are for sale or for use; provided, that “sell…

(a) Each person, firm, corporation, or agency selling diesel fuel, other than transmix, across the rack at a terminal within this state shall pay to the Department of Revenue for the use of the state, within two weeks from the beginning of the fiscal year, a wholesale oil license…

The statement herein required to be made by the distributor, manufacturer, storer, or retail dealer shall be sworn to before some officer authorized to administer oaths, and any false or fraudulent statement sworn to shall constitute perjury; and, upon conviction thereof, the per…

All distributors, manufacturers, storers, or retail dealers shall keep within the State of Alabama at some certain place or office, such books, documents, or papers as will clearly show the amount of sales or withdrawals of any oils, greases, or their substitutes made in this sta…

Every distributor, storer, retail dealer, or manufacturer engaged in the sale or withdrawal of any oils, greases, or their substitutes, as herein defined, shall make a report on blanks furnished by the Department of Revenue to the Department of Revenue showing the place and post-…

If any distributor, manufacturer, storer, or retail dealer in any oils, greases, or their substitutes in this state covered by the provisions of this article shall fail to make the reports, or any of them, to the Department of Revenue as herein required, or shall fail to keep the…

It shall be the duty of the Department of Revenue to enforce the provisions of this article, and the Department of Revenue or its agent shall have the right to examine the books, reports, and accounts of every such distributor, manufacturer, storer, or retail dealer of any oils, …

The acceptance of any money paid for the excise tax provided for in this article shall in no way preclude the collection of the money actually due; provided, that the money actually paid shall constitute a credit against the money actually due. In the event of the payment of an a…

The forms for all statements and reports required by the provisions of this article shall be prescribed and furnished by the Department of Revenue, and the cost of the enforcement of this article shall be paid out of the funds derived from the excise tax herein prescribed upon a …

Any distributor, manufacturer, storer, or retail dealer who shall violate any of the provisions of this article may be restrained and the proper prosecution instituted in the name of the State of Alabama by its Attorney General or under his direction by any district attorney from…

On or before the twentieth day of each calendar month, every person liable hereunder shall render to the Department of Revenue a true and correct statement of all sales and withdrawals of the products herein taxed and at the same time pay to the Department of Revenue an amount of…

(a) There is hereby levied in addition to all other taxes of every kind now imposed by law an excise tax on lubricating oil of $.04 per gallon, which shall be collected as herein provided. (b) Every manufacturer, distributor, refiner, retail dealer, storer, or user of lubricating…

The provisions of this article pertaining to lubricating oil and the tax herein levied on lubricating oil shall be administered and collected in accordance with Sections 40-17-170, 40-17-173, 40-17-176 through 40-17-186, or as otherwise provided in this title. (Acts 1980, No. 80-…

All revenues received or collected by the Department of Revenue upon the selling, use or consumption, distributing, storing, or withdrawing from storage in this state of lubricating oil remaining after the payment of the expense of administration and enforcement of this article a…

The State Treasurer shall make all allocations of the revenue collections and shall make the distribution and payments thereof pursuant to such allocations provided for in this article. (Acts 1980, No. 80-427, p. 590, §6.)

For the purpose of this article, the following words shall have the following meanings: (1) AGREEMENT. The International Fuel Tax Agreement. (2) BASE JURISDICTION. The member jurisdiction where qualified motor vehicles are based for vehicle registration purposes. (3) COMMISSIONER…

(a) Notwithstanding any other provisions of this law, the Commissioner of the Department of Revenue is authorized to enter into reciprocal agreements on behalf of this state with the duly authorized representatives of any of the states of the United States, the District of Columb…

An agreement pursuant to this article may provide for determining the base state for users, user’s records requirements, audit procedures, exchange of information, persons eligible for licensing, define qualified motor vehicles, determine bonding requirement, specify reporting re…

The department may collect any motor fuel taxes and fees due the members of the agreement under the provisions therein, and may deposit taxes and fees collected into an escrow account, until the time as the taxes and fees can be distributed to the respective members. (Acts 1994, …

(a) The proceeds of the tax herein levied accruing to the State of Alabama, less the actual costs of collection, shall be paid by the department to the State Treasurer for disbursement as follows: (1) That portion of the tax that is attributable to the use of motor fuel subject t…