HB235 By Representative Greer RFD Ways and Means General Fund Rd 1 16-FEB-16

SYNOPSIS: This bill would levy a motor fuel tax on certain fuels that are delivered to a destination in this state.

A BILL TO BE ENTITLED AN ACT

To amend Section 40-17-328, Code of Alabama 1975, relating to the levy of motor fuel tax; to levy the tax on certain fuels that are delivered to a destination in this state.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-17-328, Code of Alabama 1975, is amended to read as follows:

§40-17-328.

"(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.

"(5) Motor fuel acquired exempt pursuant to subdivision (1) of subsection (a) of Section 40-17-329 that was not exported but rather was delivered to a destination in this state.

"(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."

Section 2. This act shall become effective October 1, 2016, following its passage and approval by the Governor, or its otherwise becoming law.

Motor Fuel

Taxation

Code Amended