SB133 Alabama 2015 Session

Summary

Primary Sponsor

Tom Whatley

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fuel exempt, Secs. 8-17-95, 8-17-96, 8-17-97, 8-17-98, 8-17-99, 8-17-100, 8-17-101, 8-17-102 added; Sec. 8-17-89 repealed; Secs. 8-17-80, 8-17-84, 8-17-87, 8-17-91, 8-17-92, 8-17-93, 40-17-325, 40-17-329, 40-17-340, 40-17-359, 40-17-362 am'd.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

SB133 shifts petroleum product taxation and collection to the Department of Revenue, expands inspection-fee rules, updates fuel tax rates and exemptions, and changes how tax revenue is distributed to counties, municipalities, and state programs, while exempting aviation fuel.

What This Bill Does

The bill transfers duties for petroleum product collection from Agriculture and Industries to Revenue, and creates a new, detailed inspection-fee system for gasoline, diesel, kerosene, and lubricating oil including records, bonds, permits, and penalties. It sets new motor-fuel tax rates (gasoline and diesel) and expands exemptions and refunds for exports, bonded distributors, and certain exempt entities; aviation fuel remains exempt. It repeals an existing provision and adds many new sections (8-17-95 to 8-17-102) to codify the new framework, enforcement, and reporting, and establishes a floor-stocks fee for gasoline held outside the bulk-transfer system. It also reorganizes how motor-fuel tax revenue is distributed among the state, counties, municipalities, and special funds, and creates or designates funds for agriculture, road, marine safety, and wildlife programs, with a new Secondary Road Committee to guide county criteria and spending.

Who It Affects

• Petroleum product sellers, importers, bonded distributors, and bulk-terminals: new permit, bond, reporting, and electronic filing requirements; potential penalties for noncompliance.
• Retailers, wholesalers, and bulk users: new inspection fees, recordkeeping, and monthly remittance obligations; eligibility for credits or refunds under specified uses.
• Exempt entities (e.g., United States government agencies, licensed exempt entities, counties, municipalities, boards of education, state and educational systems): possible fee exemptions or targeted refunds/credits.
• Residents and local governments: changes in fuel tax rates and the distribution of highway funds, which affects county and municipal road projects and state transportation funding.
• State and local government agencies (Department of Revenue, Department of Agriculture and Industries, DOT): shifted responsibilities, new rules, and new funding/administrative costs to manage the program.

Key Provisions

• §8-17-80 to §8-17-93 additions and amendments: defines petroleum terms (gasoline, diesel, kerosene, lubricating oil, petroleum products), first seller, importer, and related terms; requires records, bonds, permits, and penalties; repeals §8-17-89.
• §8-17-84: recordkeeping and inspection rights; three-year (plus) retention of records; governing regulations to implement the article.
• §8-17-87: imposes inspection fees per gallon for various fuels (gasoline $0.02/gal; undyed diesel $0.02/gal; kerosene $0.01/gal; lubricating oil $0.15/gal) with many special-rate and exemption provisions; aviation fuel remains exempt; floor-stock fee for gasoline outside the bulk system.
• §8-17-91 and §40-17-359/§40-17-362: outlines how inspection fees and motor-fuel taxes are distributed to the Agricultural Fund, Public Road and Bridge Fund, counties, municipalities, and other state or local programs; includes a new Secondary Road Committee structure and duties.
• §8-17-92 and §8-17-93: provides for court orders/injunctions to stop violations, and penalties for false reports, noncompliance, or failure to obtain/retain permits; permits can be revoked with appeal rights.
• §8-17-95 to §8-17-102: new floor-stocks inspection fee for gasoline held outside bulk-transfer system; specific timing, payment deadlines, and liability for the fee; provisions for refunds and credits tied to use and exports.
• §40-17-325 and §40-17-340: updates to motor-fuel excise tax rates (gasoline $0.18/gal total; diesel $0.19/gal total; aviation fuel taxed as noted) and sets exemptions, export rules, and refunds tied to various scenarios (exports, exemptions, transmix, and bulk transfers).
• Refunds and credits: multiple provisions allow refunds or credits for exports, certain exempt agencies, government sales, and specific off-road or special uses; refunds may be subject to reductions by the Department of Revenue for applicable inspection fees.
• Effective dates: most provisions become effective October 1, 2016; a new paragraph in 8-17-91(e) becomes effective October 1, 2015.

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