HB561 By Representative Beech RFD Local Legislation Rd 1 20-APR-16

A BILL TO BE ENTITLED AN ACT

Relating to Washington County; authorizing the county commission to levy an excise tax on the business of selling, distributing, storing, or withdrawing from storage, for any purpose whatsoever, gasoline or motor fuel and substitutes in the county not to exceed two cents ($.02) per gallon; providing for the collection and payment of the tax and for the distribution of the tax proceeds; authorizing the county commission to make reasonable rules and regulations for the collection and enforcement of the tax levied; and providing for a referendum.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act applies to Washington County.

Section 2. For the purposes of this act the following words shall have the following meanings:

(1) COUNTY. Washington County.

(2) COUNTY COMMISSION. The Washington County Commission.

(3) DISTRIBUTOR. Any person who engages in the selling of gasoline or motor fuel in this state by wholesale domestic trade, but shall not apply to any transaction of the distributor in interstate commerce.

(4) GASOLINE. Gasoline, naphtha, and other liquid motor fuels or any device or substitute commonly used in internal combustion engines. The term shall not be held to apply to aviation fuels or to those products known commercially as "kerosene oil," "fuel oil," or "crude oil" when used for lighting, heating, or industrial purposes.

(5) MOTOR FUEL. Diesel fuel, tractor fuel, distillate, kerosene, jet fuel or any substitute therefor. The term shall not be held to apply to aviation fuels or to those products commercially known as "kerosene oil," "fuel oil," or "crude oil," when used for lighting, heating or commercial purposes.

(6) PERSON. Persons, corporations, copartnerships, companies, agencies, associations, incorporated or otherwise, singular or plural.

(7) REFINER. Any person who manufactures, distills, blends, compounds, or mixes any one or more products in the production of gasoline or motor fuel as defined in this act.

(8) RETAIL DEALER. Any person defined in this act as a distributor who is also engaged in the selling of gasoline or motor fuel in this state at any place in this state in broken quantities.

(9) STORER. Any person who ships, causes to be shipped, or receives in any quantities, stores in any manner and withdraws or uses gasoline or motor fuel for any purpose.

(10) USER. Any person who uses or consumes gasoline or motor fuel in this state in any manner or for any purpose. The term "user" shall not include any refiner who has a refinery or refineries located within the State of Alabama when using gasoline or motor fuel in the manufacturing or refining process, or any person who holds a federal permit to blend motor fuels under the federal law and statutes and who pays the federal excise tax on the motor fuels directly to the federal government, when the person uses gasoline or motor fuel in this state in the blending process.

Section 3. (a) The county commission may levy, in addition to all other taxes imposed by law, an excise tax on persons selling, distributing, storing, or withdrawing from storage for any purpose whatever, gasoline or motor fuel within the county at a rate not to exceed two cents ($.02) per gallon, and require every distributor, retail dealer, or storer of gasoline or motor fuel to pay the excise tax upon the selling, distributing, or withdrawing from storage for any use, gasoline or motor fuel in the county. The excise tax levied pursuant to this act shall not be levied upon the sale of gasoline or motor fuel in interstate commerce. If the excise tax levied pursuant to this act upon the sale of gasoline or motor fuel has been paid by a distributor or by a retail dealer or storer, the payment shall be sufficient, so that the tax shall not be paid but once. The excise tax levied pursuant to this act shall apply to persons, firms, corporations, dealers, or distributors storing gasoline or motor fuel and distributing or allowing the gasoline or motor fuel to be withdrawn from storage, whether the withdrawal is for sale or other use, provided that sellers of gasoline or motor fuel and substitutes paying the tax, may pay the tax computed and paid on the basis of their sales as required, and storers and distributors shall compute and pay the tax on the basis of their withdrawals or distributions. The tax levied shall be in addition to any and all excise or other taxes imposed on gasoline or motor fuel or any device or substitute, or on the business of selling, distributing, storing, or withdrawing from storage for any purpose, gasoline or motor fuel. The tax shall not be levied by the county commission upon any gasoline or motor fuel when used in governmental functions by the State of Alabama or an agency of the state, county governing agencies, municipalities, and boards of education.

Section 4. On or before the 20th day of each month after this act has become effective, every person upon whom the excise tax is levied shall render to the county commission on forms prescribed by the county commission a true and correct statement of all sales and withdrawals of gasoline and motor fuel made by him or her during the next preceding month, liable for payment of the excise tax imposed pursuant to the provisions of this act, and shall furnish to the county commission such additional information as the county commission may require upon forms to be furnished by the county commission, and at the time of making such report shall pay to the county commission an amount of money equal to the excise tax levied under this act. The statement herein required to be made by the distributor, storer or retail dealer shall be sworn to before some officer authorized to administer oaths, and any false statement sworn to shall constitute perjury and upon conviction thereupon the person so convicted shall be punished as provided by law for the crime of perjury.

Section 5. It shall be the duty of the county commission to enforce the collection of the tax levied under this act, and it shall have the right, through its officers or its agents to examine the books, reports, and accounts of every distributor, storer, or retail dealer on which the tax has been imposed and to make rules and regulations for the collection of the tax. Provided, however, upon resolution of the county commission, the State Department of Revenue shall collect the tax now or hereafter levied by the county under this act. All persons, firms, businesses, and corporations subject to and owing the tax shall be and hereby are directed to pay the same over to the department and such payment shall be a full and complete discharge of all liability therefor to the county. The department may promulgate reasonable rules and regulations to facilitate the orderly and efficient collection of the taxes. The department may recover all costs of collecting the tax, not to exceed five percent of the proceeds thereof, from the proceeds and shall pay the net amount remaining thereafter to the county.

Section 6. If any distributor, storer, or retail dealer fails to make monthly reports or fails to pay the tax imposed under this act, the tax shall be delinquent and there shall be added to the amount of the tax a penalty of 25 percent, and if in the opinion of the county commission a good and sufficient cause or reason is shown for the delinquency, the penalty may be remitted. The county commission may make returns for delinquent taxpayers upon the information reasonably obtained and add the penalty prescribed by this act. If any person is delinquent in the payment of the tax imposed under this act, the county commission shall issue execution for the collection of the tax, directed to the county sheriff, who shall proceed to collect the tax in the manner now provided by law for the collection of delinquent taxes by the county tax collector and make return of the execution to the county commission. The tax and the penalties provided for shall be held as a debt payable to the county by the person against whom the tax shall have been imposed or against whom the penalties shall have accrued, and all taxes and penalties shall be a lien upon the property of the person against whom the tax shall have been imposed and the penalties shall have accrued in the county and anywhere in this state.

Section 7. The acceptance of any amount paid for any excise tax imposed pursuant to this act shall not preclude the collection of the amount actually due. The amount actually paid shall constitute a credit against the amount actually due.

Section 8. Any distributor, storer, or dealer who violates this act, or fails to comply with any rule or regulation promulgated, may be restrained, and proper prosecution instituted in the name of the county by the county attorney or the Attorney General of the State of Alabama, or by such counsel as the county commission appoints, from distributing, selling, storing, or withdrawing from storage any gasoline or motor fuel the sale or withdrawal of which is taxable until there is compliance with this act.

Section 9. The proceeds of the tax imposed under this act shall be deposited into a county special revenue fund to be expended for the replacement and construction of bridges and resurfacing of existing paved roads in Washington County.

Section 10. Sections 1 through 9 of this act shall become operative only if approved by a majority of the qualified electors of Washington County who vote in an election to be held in conjunction with the next regularly scheduled or special election held in the county. The notice of the election shall be given by the judge of probate and the election shall be held, conducted, and the results canvassed in the manner as other county elections. The question shall be, "Do you favor the adoption of Act No.__ of the 2016 ________ Session of the Alabama Legislature, which authorizes the levy of a gasoline tax in Washington County for county roads and bridges? Yes ( ) No ( )." The county shall pay any costs and expenses not otherwise reimbursed by a governmental agency which are incidental to the election. If a majority of the votes cast in the election are "Yes," Sections 1 through 9 of this act shall be operative immediately. If a majority of the votes cast are "No," Sections 1 through 9 of this act shall be null and void and shall have no further effect. The judge of probate shall certify the results of the election to the Secretary of State.

Section 11. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Washington County

Counties

County Commissions

Taxation

Excise Tax

Gasoline Tax

Elections

Oil and Gas