HB261 Alabama 2013 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Alan BakerRepresentative
Republican
Co-Sponsors: Greg Burdine Kurt Wallace Allen Treadaway April Weaver Mac McCutcheon Mike Hill Alan Harper Randy Davis Lesley Vance
Session: Regular Session 2013
Title: Taxation, exported oil and transmix exempt from license fee, definitions clarified, K-1 kerosene and aviation jet fuel refined in state exempt from motor fuel tax, Secs. 40-17-174, 40-17-322, 40-17-329, 40-17-340, 40-17-362 am'd.
Summary: HB261 changes Alabama oil taxes by exempting certain exported fuels from the wholesale license fee, clarifying fuel terms, and defining K-1 kerosene and related categories so K-1 kerosene refined in-state for immediate export may be exempt from destination-state taxes.
What This Bill Does
If enacted, the bill would remove the Alabama wholesale oil license fee on diesel fuel exported from Alabama and on transmix; it would also clarify key terms used in the oil tax system and add definitions for kerosene, K-1 kerosene, associate jobber, and related concepts. It would require export documentation to prove shipments and extend an exemption for K-1 kerosene refined in-state when exported immediately, potentially avoiding destination-state taxes. It retains existing refund mechanisms for taxes paid on exports and other exempt fuels, and updates some reporting requirements.

Who It Affects
Exporters of diesel fuel and transmix would not owe the Alabama wholesale oil license fee on those exported gallons.
In-state refineries that produce K-1 kerosene or aviation jet fuel for immediate export would have these fuels exempt from destination-state taxes with proof of export.
Licensed suppliers, permissive suppliers, and associate jobbers would see clarified definitions and reporting/documentation requirements under the tax system.
Terminal operators and exporters, who must use export documentation and product labeling (e.g., K-1 kerosene/aviation jet fuel) to qualify for exemptions.

Key Provisions
Exempts the Alabama wholesale oil license fee for diesel fuel exported from Alabama and for transmix (and includes biodiesel deliveries to terminals as exempt from the fee).
Adds and clarifies definitions in 40-17-322, including 'special fuel', 'Two-Party Exchange', 'associate jobber', and specifies kerosene-related terms ('kerosene' and 'K-1 kerosene').
Exempts K-1 kerosene refined in-state for immediate export from destination-state motor fuel taxes, with export proof required via terminal destination state shipping documents.
In 40-17-329, confirms export exemptions for motor fuel shipped out of state with proper proof of export and references to the product as 'K-1 kerosene' or 'aviation jet fuel' where applicable.

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