HB122 Alabama 2015 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2015

Title

Petroleum products, taxation, collection and distribution by Revenue Department, certain duties transferred from Agriculture and Industries Department, aviation fuel exempt, Secs. 8-17-95, 8-17-96, 8-17-97, 8-17-98, 8-17-99, 8-17-100, 8-17-101, 8-17-102 added; Sec. 8-17-89 repealed; Secs. 8-17-80, 8-17-84, 8-17-87, 8-17-91, 8-17-92, 8-17-93, 40-17-325, 40-17-329, 40-17-340, 40-17-359, 40-17-362 am'd.

Summary

This bill shifts petroleum inspection fee collection to the Department of Revenue, updates petroleum tax rules and aviation fuel exemptions, and restructures how highway tax proceeds are distributed to the state, counties, and municipalities along with creating a transportation planning committee.

What This Bill Does

It requires the Alabama Department of Revenue to collect inspection fees for gasoline, dyed diesel fuel, dyed kerosene, and lubricating oil (with separate returns for some products) and to enforce new bonding, permit, and recordkeeping requirements. It clarifies definitions of petroleum products, adjusts how funds are distributed, and introduces a floor-stocks inspection fee for gasoline inventory outside the bulk transfer/terminal system. It also reorganizes the distribution of highway tax proceeds, creates the Secondary Road Committee to set criteria and standards, and directs funds to state and local road projects, conservation programs, and related transportation activities.

Who It Affects

• Petroleum product sellers and distributors (including first sellers, importers, bonded distributors, permissive suppliers, and retailers) who would be responsible for collecting and remitting inspection fees, obtaining and maintaining permits, posting bonds, keeping records, and facing penalties or liens for nonpayment.
• Local governments (counties and municipalities) and transportation-related agencies that would receive revised shares of highway tax proceeds and be subject to new distribution rules and oversight through the Secondary Road Committee.

Key Provisions

• Provision 1: Transfers the collection of petroleum inspection fees from the Department of Agriculture and Industries to the Department of Revenue, updates definitions for petroleum products, requires new bonds and permits for various players, and adds a floor-stocks inspection fee for gasoline held outside the bulk transfer/terminal system (effective October 1, 2016 with phased implementation). Aviation gasoline and jet fuel are treated separately with specific tax and exemption rules.
• Provision 2: Overhauls the allocation of highway tax proceeds, creating a structured distribution to the state, counties, and municipalities, and establishing the Secondary Road Committee to set criteria and standards for road/bridge projects and recreation access. It also specifies fund uses, matching requirements for federal aid, and conditions for transferring or withholding funds to support transportation-related construction, maintenance, and related programs.

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