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Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-17-328

Fuels on Which Tax Is Levied; Who Is Liable for Tax

Official textalison.legislature.state.al.us

# (a)

The tax levied pursuant to Section 40-17-325 is levied on all of the following:

# (1)

Dyed diesel fuel that is used to operate a highway vehicle other than dyed diesel fuel used in city and county vehicles.

# (2)

Motor fuel that is used to operate a highway vehicle after an application for a refund of tax paid on the motor fuel is made or allowed on the basis that the motor fuel was used for an off-highway purpose.

# (3)

Aviation gasoline on which a tax was imposed under subdivision (3) of subsection (a) of Section 40-17-325 that is used other than for fuel in an aircraft is subject to the tax rate imposed under subdivision (1) of subsection (a) of Section 40-17-325.

# (4)

Aviation jet fuel on which a tax was imposed under subdivision (3) of subsection (a) of Section 40-17-325 that is used other than for fuel in an aircraft is subject to the tax rate imposed under subdivision (2) of subsection (a) of Section 40-17-325.

# (b)

The operator of a highway vehicle that uses untaxed or refunded motor fuel that is taxable under subdivisions (1) and (2) of subsection (a) is liable for the tax. If the highway vehicle that uses the motor fuel is owned by or leased to a motor carrier, the operator of the highway vehicle and the motor carrier are jointly and severally liable for the tax. If the ultimate vendor of motor fuel taxable under this section knew or had reason to know that the motor fuel would be used for a purpose that is taxable under this section, the operator of the highway vehicle and the end seller are jointly and severally liable for the tax.

# (c)

The licensed aviation fuel dealer selling the aviation gasoline or aviation jet fuel that is not used in an aircraft is liable for the tax owed under subdivisions (3) and (4) of subsection (a).

# (d)

The tax liability levied by this section is in addition to any other penalty imposed pursuant to this article.

Last amended: Act 2011-565, p. 1084, §9.

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In this chapter (40 sections)
  1. 40-17-275 · Audit
  2. 40-17-290 · Discount Authorized
  3. 40-17-291 · Floor-Stocks Tax on Motor Fuel
  4. 40-17-300 · Definitions
  5. 40-17-301 · Purposes
  6. 40-17-302 · Eligibility for Refund; Amount
  7. 40-17-303 · Filing and Form of Claim for Refund
  8. 40-17-304 · Time for Filing Claim
  9. 40-17-305 · Payment of Refund; Appropriation
  10. 40-17-306 · Powers of Commissioner of Revenue
  11. 40-17-307 · Assessment of Tractors for Ad Valorem Tax
  12. 40-17-308 · False or Fraudulent Claims
  13. 40-17-320 · Short Title
  14. 40-17-321 · Legislative Intent
  15. 40-17-322 · Definitions
  16. 40-17-323 · Promulgation of Rules; Reporting Forms or Format
  17. 40-17-324 · Exchange of Information with Other States
  18. 40-17-325 · Levy of Excise Tax; Rates
  19. 40-17-326 · Taxable Activities; Terminal Operators Deemed Suppliers;…
  20. 40-17-327 · Taxable Unaccounted for Motor Fuel Losses at a Terminal
  21. 40-17-328 · Fuels on Which Tax Is Levied; Who Is Liable for Tax
  22. 40-17-329 · Exemptions
  23. 40-17-330 · Refund Petitions and Claims
  24. 40-17-331 · Floor-Stocks Tax on Motor Fuel
  25. 40-17-332 · Licenses Required
  26. 40-17-333 · Application for License
  27. 40-17-334 · Licensed Permissive Suppliers
  28. 40-17-335 · Surety Bond. (Amended by Act 2026-528)
  29. 40-17-336 · Refusal to Issue License; Appeal
  30. 40-17-337 · Issuance of License; Nontransferability
  31. 40-17-338 · Discontinuance of Business by a Licensee
  32. 40-17-339 · Cancellation of License
  33. 40-17-340 · Filing of Monthly Return and Payment Due
  34. 40-17-341 · Remitting of Taxes Due to Supplier or Permissive Supplier
  35. 40-17-342 · Requirements for Returns
  36. 40-17-343 · Deductions from Monthly Return for Payments Not Previously…
  37. 40-17-344 · Payments Held in Trust for the State; Notification of…
  38. 40-17-345 · Import Verification Number; Licensing
  39. 40-17-346 · Monthly Exporter Returns
  40. 40-17-347 · Monthly Informational Report of Terminal Operators; Annual…
Full table of contents →