HB235 Alabama 2016 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Lynn Greer
Republican
Session: Regular Session 2016
Title: Motor fuel tax, tax on fuels delivered to a destination in this state, Secs. 40-17-328 am'd.
Summary: HB235 expands Alabama's motor fuel tax to cover fuels delivered to destinations in the state and clarifies who must pay the tax.
What This Bill Does
It expands the motor fuel tax to apply to fuels delivered to destinations in Alabama, including dyed diesel used in highway vehicles, motor fuel after refunds for off-highway use, aviation gasoline and jet fuel when used for non-aircraft purposes, and certain exempt fuel delivered in-state. It also sets who must pay the tax: highway vehicle operators using untaxed or refunded fuel are liable, with joint liability with the motor carrier if the vehicle is owned or leased by a carrier; end fuel sellers can be liable if they knew the fuel would be taxed; aviation fuel dealers are liable for the tax on fuels not used in aircraft. The tax would be added to penalties and takes effect October 1, 2016.

Who It Affects
Highway vehicle operators who use untaxed or refunded motor fuel and are therefore liable for the tax.
Motor carriers (owners or lessors of highway vehicles) and their operators, who may share liability for the tax.
End sellers of motor fuel who could be jointly and severally liable if they knew the fuel would be taxed.
Licensed aviation fuel dealers who would be liable for the tax on aviation gasoline and aviation jet fuel not used in aircraft.

Key Provisions
Amends Section 40-17-328 to levy the motor fuel tax on fuels delivered to a destination in Alabama, including dyed diesel used in highway vehicles (excluding city/county vehicles), motor fuel after off-highway refund, aviation gasoline and jet fuel used for purposes other than powering aircraft, and certain exempt fuel delivered in-state.
Establishes liability rules: operators of highway vehicles using taxed fuels are liable; if the vehicle is owned or leased by a motor carrier, the operator and carrier share liability; end sellers may share liability if they knew the fuel would be taxed; aviation fuel dealers are liable for taxes on aviation fuels not used in aircraft.
Tax liability is in addition to penalties and the act becomes effective October 1, 2016.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Fuel