SB433 Alabama 2014 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

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on motor fuels, Secs. 8-17-95, 8-17-96, 8-17-97, 8-17-98, 8-17-99, 8-17-100, 8-17-101, 8-17-102 added; Sec. 8-17-89 repealed; Secs. 8-17-80, 8-17-84, 8-17-87, 8-17-91, 8-17-92, 8-17-93, 40-17-325, 40-17-329, 40-17-359, 40-17-362 am'd.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

SB433 shifts the collection and administration of petroleum product inspection fees from the Department of Agriculture to the Department of Revenue, adds a new floor-stocks inspection fee, and reorganizes definitions and the distribution of fuel tax funds.

What This Bill Does

It moves gasoline inspection fee collection to the terminal excise tax return and places the inspection fees for dyed diesel fuel, dyed kerosene, and lubricating oil on a separate return, with the Alabama Department of Revenue as the collector. It creates a floor-stocks inspection fee on gasoline held outside the bulk transfer system as of October 1, 2015, payable by December 31, 2015. It establishes a new permit and bonding regime for those handling the inspection fees, requires electronic monthly reporting, and provides for penalties and enforcement. It also clarifies definitions and reorganizes how motor fuel tax proceeds are distributed to state funds, counties, municipalities, and exempt entities, including provisions to offset Revenue’s administration costs and various refund and credit rules.

Who It Affects

• Businesses involved in motor fuel distribution (sellers, importers, bonded distributors, and permissive suppliers) would be responsible for collecting and remitting inspection fees, posting bonds, obtaining permits, maintaining records, and filing electronic returns.
• State and local governments and agencies (Department of Revenue, Department of Agriculture and Industries, counties, municipalities, and certain exempt entities) would administer and receive distributions from fuel tax proceeds, process refunds and credits, and enforce compliance, including potential penalties and permit cancellations.

Key Provisions

• Shift of petroleum product inspection fee collection from the Department of Agriculture and Industries to the Department of Revenue; gasoline inspection fees on the terminal excise tax return; dyed diesel fuel, dyed kerosene, and lubricating oil on a separate return; Revenue to collect all fees.
• Introduction of new floor-stocks inspection fee on gasoline held in inventory outside the bulk transfer/terminal system as of October 1, 2015, with payment required by December 31, 2015.
• Creation of Sections 8-17-95 through 8-17-102 adding definitions and establishing a permit and bond system (including $5,000 bonds) for inspection fee holders, plus enforcement mechanisms and appeal rights.
• Requirement for monthly electronic returns and payments by suppliers, permissive suppliers, importers, first sellers, and bonded distributors; penalties and interest for late payments or filings; liens to secure payment of fees.
• Revisions to the motor fuel excise tax structure and exemptions, including rules for refunds and credits related to exports, casualties, transmix, and use of fuels by exempt entities; detailed distribution formulas for net tax proceeds and supplemental net tax proceeds to the Agricultural Fund, Public Road and Bridge Fund, counties, municipalities, and other designated funds.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation