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Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-17-370

Levy, Administration, and Collection of Additional Excise Tax

Official textalison.legislature.state.al.us

# (a)

Effective for tax periods beginning after August 31, 2019, an additional excise tax of six cents ($0.06) is imposed on each net gallon of gasoline and diesel fuel.

# (b)

Effective October 1, 2020, this additional excise tax is increased by two cents ($.02) to eight cents ($0.08) on each net gallon of gasoline and diesel fuel.

# (c)

Effective October 1, 2021, this additional excise tax is increased by two cents ($.02) to ten cents ($0.10) on each net gallon of gasoline and diesel fuel.

# (d)

Beginning October 1, 2023, and on July 1 of every other year thereafter, the excise tax rate provided in this section shall be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) issued by the U. S. Federal Highway Administration (FHWA) for the most recent 12-month period ending December 31, compared to the base year average, which is the average for the 12-month period ending December 31, 2020 and rounded to the nearest whole cent. The maximum amount of increase or decrease in the excise tax rate shall not exceed $.01 per net gallon of gasoline or diesel fuel and shall take effect every other year. The Department of Revenue shall notify each terminal supplier, position holder, licensed distributor, and importer of the tax rate adjustment applicable under this subsection on or before March 1.

# (e)

This additional excise tax shall be levied, administered, and collected in accordance with Article 12, provided that the due date for payment and filing of returns for all motor fuel taxes, including the additional amounts levied in this article, shall be the 20th day of the month following the month in which the tax accrues, except as otherwise provided in Section 40-17-340 (d), and the bond required under Section 40-17-335 (a)(1) shall not exceed three million dollars ($3,000,000). The net tax proceeds, after the cost of collection and distribution to the Alabama Highway Finance Corporation authorized by this article shall be distributed to the state and to each county and municipality for transportation infrastructure purposes in accordance with this article.

Last amended: Act 2019-2, 1st Sp. Sess., §6.

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In this chapter (40 sections)
  1. 40-17-332 · Licenses Required
  2. 40-17-333 · Application for License
  3. 40-17-334 · Licensed Permissive Suppliers
  4. 40-17-335 · Surety Bond. (Amended by Act 2026-528)
  5. 40-17-336 · Refusal to Issue License; Appeal
  6. 40-17-337 · Issuance of License; Nontransferability
  7. 40-17-338 · Discontinuance of Business by a Licensee
  8. 40-17-339 · Cancellation of License
  9. 40-17-340 · Filing of Monthly Return and Payment Due
  10. 40-17-341 · Remitting of Taxes Due to Supplier or Permissive Supplier
  11. 40-17-342 · Requirements for Returns
  12. 40-17-343 · Deductions from Monthly Return for Payments Not Previously…
  13. 40-17-344 · Payments Held in Trust for the State; Notification of…
  14. 40-17-345 · Import Verification Number; Licensing
  15. 40-17-346 · Monthly Exporter Returns
  16. 40-17-347 · Monthly Informational Report of Terminal Operators; Annual…
  17. 40-17-348 · Monthly Informational Report of Motor Fuel Transporter
  18. 40-17-349 · Violations
  19. 40-17-350 · Transportation of Motor Fuel; Inspections
  20. 40-17-351 · Civil Penalties
  21. 40-17-352 · Criminal Penalties
  22. 40-17-353 · (Amended by Act 2026-528) Seizure of Storage Receptacles…
  23. 40-17-354 · Recordkeeping
  24. 40-17-355 · Refusal to Permit Inspection
  25. 40-17-356 · Dyed Diesel Fuel
  26. 40-17-357 · Preemption of Local Laws
  27. 40-17-358 · Taxes to Be Borne by Consumer and Paid Once
  28. 40-17-359 · Distribution and Use of Proceeds
  29. 40-17-360 · Disposition of Aviation Fuel Proceeds
  30. 40-17-361 · Disposition of Diesel Proceeds
  31. 40-17-362 · Use of Tax Proceeds for Highway Purposes
  32. 40-17-362.1 · Use of Motor Fuel Taxes for Road and Bridge Purposes;…
  33. 40-17-363 · Funding
  34. 40-17-370 · Levy, Administration, and Collection of Additional Excise…
  35. 40-17-371 · Cost of Collection; Distribution of Tax Proceeds
  36. 40-17-380 · Definitions
  37. 40-17-381 · Development of System for Filing Electronic Tax Return for…
  38. 40-17-382 · Authorization and Use of System
  39. 40-17-383 · Local Motor Fuel Tax Advisory Committee
  40. 40-17-384 · Construction of Article
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