HB562 Alabama 2014 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2014

Title

Taxation, tax on motor fuels, Secs. 8-17-95, 8-17-96, 8-17-97, 8-17-98, 8-17-99, 8-17-100, 8-17-101, 8-17-102 added; Sec. 8-17-89 repealed; Secs. 8-17-80, 8-17-84, 8-17-87, 8-17-91, 8-17-92, 8-17-93, 40-17-325, 40-17-329, 40-17-359, 40-17-362 am'd.

Summary

HB562 shifts the collection of petroleum product inspection fees from Agriculture and Industries to the Department of Revenue, clarifies definitions, adds a new floor-stocks gasoline fee, and changes how fee money is distributed to state and local programs.

What This Bill Does

Key changes include: (1) moving inspection fee collection for gasoline to the terminal excise tax return and moving dyed diesel fuel, dyed kerosene, and lubricating oil fees to separate returns, with Revenue collecting the fees; (2) clarifying definitions used for petroleum products fees; (3) altering the disposition of funds to provide for Revenue administration of collecting the fees; (4) creating a new floor-stocks inspection fee for gasoline held outside the bulk transfer/terminal system starting Oct 1, 2015 with specified rate and payment timing; (5) imposing new permit, bond, and monthly reporting requirements for suppliers, permissive suppliers, importers, first sellers, and bonded distributors, plus enforcement mechanisms.

Who It Affects

• Gasoline and other motor-fuel sellers, importers, bonded distributors, and entities handling petroleum products; they must obtain inspection-fee permits, post bonds, file monthly electronic returns, and may face penalties or permit cancellations for noncompliance.
• Counties, municipalities, the Department of Transportation, and state programs that receive motor-fuel tax proceeds; they are affected by new and reallocated distributions of highway and related funds.

Key Provisions

• Shifts inspection-fee collection from the Department of Agriculture and Industries to the Alabama Department of Revenue and updates definitions for petroleum products fees.
• Implements a floor-stocks inspection fee on gasoline held outside the bulk transfer/terminal system beginning October 1, 2015, with the rate and payment terms tied to existing fee structures.
• Requires suppliers, permissive suppliers, importers, first sellers, and bonded distributors to obtain an inspection-fee permit, post a bond of $5,000, and file monthly electronic returns; permits can be canceled for noncompliance.
• Amends multiple sections (8-17-80, 84, 87, 91-93 and 40-17-325, 329, 359, 362) to redefine terms and to reorganize how motor-fuel tax revenues are distributed among state and local governments and designated funds (including Agricultural Fund, Public Road and Bridge Fund, and others).
• Creates the Secondary Road Committee to set criteria and standards for high-density roads and bridges and requires counties to submit plans for use of the proceeds, with oversight from the Department of Transportation.
• Provides rules for refunds, credits, exemptions, and enforcement related to inspection fees, including exports and government sales, and establishes administrative procedures for refunds and appeals.

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