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Act 2011-565 Alabama Terminal Excise Tax Act

Act 2011-565 Alabama Terminal Excise Tax Act. How this Act affects Exempt Entities. Explanation of Act. All gasoline, clear diesel fuel, clear kerosene, jet fuel, and aviation fuel must have a state tax applied when product leaves the Alabama terminal.

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Act 2011-565 Alabama Terminal Excise Tax Act

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  1. Act 2011-565Alabama Terminal Excise Tax Act How this Act affects Exempt Entities

  2. Explanation of Act All gasoline, clear diesel fuel, clear kerosene, jet fuel, and aviation fuel must have a state tax applied when product leaves the Alabama terminal. It will have either the Alabama excise tax or the destination state excise tax applied

  3. Types of New Licenses • Supplier • Permissive Supplier • Distributor • Importer • Exporter • Transporter • Aviation fuel purchaser • Exempt Entity

  4. Exempt Entity LicenseWho Qualifies for License • U.S. Government or any agency thereof • County Governing bodies • Incorporated Municipalities • City and County Boards of Educations • Alabama Institute for Deaf and Blind • Department of Youth Services • School Districts, Private and Church School Systems (K-12)

  5. How to Obtain License • Complete Fuel Tax Exempt License Application • Obtain application from Department Web Page • www.revenue.alabama.gov • Under Divisions & Services – select Business & License Tax • Select Motor Fuels • Select “New” Terminal Excise Tax • Select Exempt Entity Application

  6. Exempt Entity Application • Complete Application • Application must be mailed • Mail Application tothe following address Alabama Department of Revenue Business & License Tax Division Motor Fuels Section P.O. Box 327540 Montgomery, AL 36132-7540

  7. Methods of Obtaining Fuel Tax-Free • Give a copy of your Exemption License to a Licensed Distributor or Licensed Supplier and have your fuel delivered to your tanks tax-free • Obtain a Credit Card from a participating Credit Card issuer and purchase your fuel from a local gas station that accepts those credit cards • Obtain fuel from a Licensed Distributor who owns a local gas station and they can bill you weekly or monthly. • Cities and Counties may purchase dyed diesel fuel from any entity that sells it and use it in on-road vehicles

  8. Another Option • Exempt Entities can purchase fuel tax-paid and apply for a refund on a quarterly basis

  9. Exempt Fuel • The purchasing of exempt fuel is for your own use. • During the licensing process, the Department has learned of some cities, counties, and school boards have been reselling the fuel. • The problem with reselling the fuel is some of the entities purchasing the fuel are not exempt the excise taxes. They may be non-profits, but all non-profits are not exempt or able to apply for a refund of taxes.

  10. Contacts • Motor Fuels Section • Kim Atkins – 334-242-9608 • kim.atkins@revenue.alabama.gov • Motor Fuels and Examination Section • Randy Winkler – 334-242-9672 • randall.winkler@revenue.alabama.gov

  11. Questions

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