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Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-17-341

Remitting of Taxes Due to Supplier or Permissive Supplier

Official textalison.legislature.state.al.us

# (a)

Each distributor or importer shall remit to the supplier or permissive supplier, as applicable, the motor fuel tax levied by Section 40-17-325 due on motor fuel removed at a terminal rack. At the election of a licensed distributor or licensed importer, the supplier or permissive supplier may not require the licensed distributor or licensed importer to pay the tax levied by Section 40-17-325 earlier than one business day before the date the supplier or permissive supplier is required to pay the tax to this state. An election under this subsection is subject to the condition that remittances by the licensed distributor or licensed importer of all tax due to the supplier or permissive supplier shall be paid by electronic funds transfer. An election under this subsection may be terminated by the supplier or permissive supplier if the licensed distributor or licensed importer does not make timely payments to the supplier or permissive supplier as required by this subsection.

# (b)

A licensed exporter shall remit destination state tax due on motor fuel removed at a terminal rack to the supplier of the motor fuel. If the laws of the destination state prohibit the collection of the destination state’s tax, the tax levied by Section 40-17-325 shall be collected.

# (c)

All tax payments received by a supplier or permissive supplier shall be held in trust by the supplier or permissive supplier until the supplier or permissive supplier remits the tax payment to this state or to another state, and the supplier or permissive supplier shall constitute the trustee for the tax payments.

# (d)

A licensed distributor or importer that timely pays the tax due a supplier or permissive supplier as required in this section, may deduct from the amount otherwise due to the supplier or permissive supplier a discount of four tenths of one percent (.004) of the amount of tax payable. The discount covers the expense of furnishing a bond and losses due to shrinkage and evaporation. A supplier or permissive supplier may not directly or indirectly deny the discount to a licensed distributor or licensed importer that timely pays the tax due the supplier or permissive supplier as required by this section.

Last amended: Act 2011-565, p. 1084, §22.

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In this chapter (40 sections)
  1. 40-17-321 · Legislative Intent
  2. 40-17-322 · Definitions
  3. 40-17-323 · Promulgation of Rules; Reporting Forms or Format
  4. 40-17-324 · Exchange of Information with Other States
  5. 40-17-325 · Levy of Excise Tax; Rates
  6. 40-17-326 · Taxable Activities; Terminal Operators Deemed Suppliers;…
  7. 40-17-327 · Taxable Unaccounted for Motor Fuel Losses at a Terminal
  8. 40-17-328 · Fuels on Which Tax Is Levied; Who Is Liable for Tax
  9. 40-17-329 · Exemptions
  10. 40-17-330 · Refund Petitions and Claims
  11. 40-17-331 · Floor-Stocks Tax on Motor Fuel
  12. 40-17-332 · Licenses Required
  13. 40-17-333 · Application for License
  14. 40-17-334 · Licensed Permissive Suppliers
  15. 40-17-335 · Surety Bond. (Amended by Act 2026-528)
  16. 40-17-336 · Refusal to Issue License; Appeal
  17. 40-17-337 · Issuance of License; Nontransferability
  18. 40-17-338 · Discontinuance of Business by a Licensee
  19. 40-17-339 · Cancellation of License
  20. 40-17-340 · Filing of Monthly Return and Payment Due
  21. 40-17-341 · Remitting of Taxes Due to Supplier or Permissive Supplier
  22. 40-17-342 · Requirements for Returns
  23. 40-17-343 · Deductions from Monthly Return for Payments Not Previously…
  24. 40-17-344 · Payments Held in Trust for the State; Notification of…
  25. 40-17-345 · Import Verification Number; Licensing
  26. 40-17-346 · Monthly Exporter Returns
  27. 40-17-347 · Monthly Informational Report of Terminal Operators; Annual…
  28. 40-17-348 · Monthly Informational Report of Motor Fuel Transporter
  29. 40-17-349 · Violations
  30. 40-17-350 · Transportation of Motor Fuel; Inspections
  31. 40-17-351 · Civil Penalties
  32. 40-17-352 · Criminal Penalties
  33. 40-17-353 · (Amended by Act 2026-528) Seizure of Storage Receptacles…
  34. 40-17-354 · Recordkeeping
  35. 40-17-355 · Refusal to Permit Inspection
  36. 40-17-356 · Dyed Diesel Fuel
  37. 40-17-357 · Preemption of Local Laws
  38. 40-17-358 · Taxes to Be Borne by Consumer and Paid Once
  39. 40-17-359 · Distribution and Use of Proceeds
  40. 40-17-360 · Disposition of Aviation Fuel Proceeds
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