Act 2011-565Alabama 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.

It will have either the Alabama excise tax or the destination state excise tax applied

Types of New Licenses

• Supplier• Permissive Supplier• Distributor• Importer• Exporter• Transporter• Aviation fuel purchaser• Exempt Entity

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)

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

Exempt Entity Application• Complete Application• Application must be mailed• Mail Application to the following address

Alabama Department of RevenueBusiness & License Tax DivisionMotor Fuels SectionP.O. Box 327540Montgomery, AL 36132-7540

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

Another Option

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

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.

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

Questions