HB399 Alabama 2011 Session

Summary

Primary Sponsor

Johnny Mack Morrow

Democrat

Co-Sponsors

Wayne JohnsonJim PattersonKen JohnsonKurt WallaceMac ButtramApril WeaverElaine BeechRichard J. LairdAllen TreadawayMicky HammonPhil WilliamsAlan BakerJoe FaustHarry ShiverMike BallMac McCutcheonMike HillMike Jones

Session

Regular Session 2011

Title

Motor fuel tax, point of taxation moved from wholesaler to withdrawal from terminal, licensing and fees, distrib. of proceeds, penalties, Terminal Excise Tax Act, Secs. 40-17-171, 40-17-220, 40-17-221, 40-17-223 am'd.; Secs. 40-12-190 to 40-12-202, incl., 40-12-204 to 40-12-206, incl., 40-17-1, 40-17-2, 40-17-5 to 40-17-9, incl., 40-17-13, 40-17-14, 40-17-18 to 40-17-20, incl., 40-17-22, 40-17-30 to 40-17-40, incl., 40-17-43, 40-17-45, 40-17-49 to 40-17-52, incl., 40-17-70 to 40-17-74, incl., 40-17-74.1, 40-17-75 to 40-17-82, incl., 40-17-100 to 40-17-108, incl., 40-17-120 to 40-17-122, incl., 40-17-124, 40-17-125, 40-17-174, 40-17-200, 40-17-201, 40-17-203, 40-17-222, 40-17-240, 40-17-250, 40-17-290, 40-17-291 repealed (2011-20461)

Summary

HB399 creates the Alabama Terminal Excise Tax Act, moving motor fuel tax collection to terminal withdrawals, imports, and blending, and overhauls licensing, refunds, and revenue distribution.

What This Bill Does

It taxes motor fuel at three points: when fuel is removed from the terminal rack (non-bulk transfer), when fuel is imported into Alabama (non-bulk transfer), and when blended fuel is produced in-state. It sets tax rates of 16 cents per gallon for gasoline, 19 cents for diesel, 9.5 cents for aviation gasoline, and 3.5 cents for aviation jet fuel, with blending taxed at the rate of the base fuel used. It creates a licensing and bonding system for suppliers, permissive suppliers, terminal operators, exporters, importers, blenders, distributors, and transporters, including fees, bonds, and penalties for noncompliance. It also provides refunds and exemptions for exports, certain exempt agencies, off-road uses, and other cases, and lays out how net tax proceeds are distributed to the state, counties, and municipalities (with additional funds for aviation, marine safety, and wildlife programs).

Who It Affects

• Fuel industry players (suppliers, permissive suppliers, terminal operators, exporters, importers, blenders, distributors, and motor fuel transporters) who would need licenses, post bonds, file monthly tax returns, keep detailed records, and face penalties or license actions for noncompliance.
• Local governments and the state highway system, which would receive a large share of net tax proceeds distributed to state and local highway funds, with allocations to counties and municipalities based on formulas and population, plus dedicated funds for aviation, marine safety, and wildlife programs.

Key Provisions

• Imposes motor fuel tax at three points: removal at the terminal rack (non-bulk transfer), import into the state (non-bulk transfer), and blending occurring in-state, with blended fuel taxed at the applicable rate.
• Sets tax rates: gasoline 16 cents per gallon, diesel 19 cents per gallon, aviation gasoline 9.5 cents per gallon, aviation jet fuel 3.5 cents per gallon; the tax on motor fuel paid shall not be subject to other state excise taxes.
• Creates a comprehensive licensing system with multiple license types (supplier, permissive supplier, terminal operator, exporter, importer, blender, distributor, transporter, aviation fuel purchaser) and associated fees, bond requirements, and potential license cancellations for noncompliance.
• Distributes net tax proceeds (45% to the state Public Road and Bridge Fund and 55% to counties/municipalities) with specific monthly distribution methods and additional allocations for dedicated funds and programs (e.g., aviation, marine safety, wildlife).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation