HB362

ENROLLED, An Act,

Relating to Washington County; to authorize the county commission to levy an excise tax on the selling, distributing, storing, or withdrawing from storage gasoline and diesel fuel in the county; to provide exemptions; to provide for the collection of the gas tax; to provide for the distribution of the proceeds of the gas tax; to authorize the county commission to make reasonable rules for the collection of the gas tax; to provide for the enforcement of this act and the penalties for violations; to authorize the county commission to levy a sales and use tax and a leasing tax; to provide for the collection, distribution, and use of the proceeds of the taxes; and to provide for a referendum.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act shall only apply in Washington County.

Section 2. (a) For the purposes of this section, the following words have the following meanings:

(1) AVIATION FUEL. As defined in Section 40-17-322, Code of Alabama 1975.

(2) COUNTY COMMISSION. The Washington County Commission.

(3) DIESEL FUEL. As defined in Section 40-17-322, Code of Alabama 1975.

(4) DISTRIBUTOR. Any person who engages in the selling of gasoline or diesel fuel in this state by wholesale domestic trade.

(5) DYED DIESEL FUEL. As defined in Section 40-17-322, Code of Alabama 1975.

(6) GASOLINE. As defined in Section 40-17-322, Code of Alabama 1975.

(7) KEROSENE. As defined in Section 40-17-322, Code of Alabama 1975.

(8) PERSON. Any individual, firm, cooperative, association, corporation, limited liability corporation, trust, business trust, syndicate, partnership, limited liability partnership, joint venture, receiver, trustee in bankruptcy, club, society, or other group or combination acting as a unit.

(9) REFINERY. As defined in Section 40-17-322, Code of Alabama 1975.

(10) RETAIL DEALER. A person other than a wholesale distributor who engages in the business of selling or distributing taxable gasoline or diesel fuel to the end user within this state.

(11) SPECIAL FUEL. As defined in Section 40-17-322, Code of Alabama 1975.

(12) STORER. Any person who ships or causes to be shipped or receives gasoline or diesel fuel into this state in quantities and stores the same in any manner and withdraws or uses the same for any purpose.

(b)(1) Commencing January 1 following the election held pursuant to Section 4 of this act, the county commission may levy an excise tax on the distribution, retail sale, or withdrawal from storage of gasoline or diesel fuel within the county at the rate not to exceed two cents ($0.02) per gallon. The county commission shall require every distributor, retail dealer, or storer of gasoline or diesel fuel to pay the tax on the selling, distributing, or withdrawing from storage gasoline and diesel fuel in the county for any purpose or use.

(2) It is the intent of this section that the tax be collected and paid by the distributor. The distributor shall collect and pay the tax on the basis of distributions. If the tax levied under this section has been collected by a distributor, that payment shall be sufficient, the intention being that the tax shall be paid once. If the tax has not been collected and paid by the distributor, the retail dealer or storer shall be liable for the tax if gasoline or diesel fuel is sold or withdrawn from storage in the county. A retail dealer paying the tax herein provided shall pay the tax on the basis of sales and a storer shall pay the tax on the basis of withdrawals from storage.

(3) The tax provided for by this section shall be in addition to any and all excise or other taxes imposed on gasoline or diesel fuel or on the business of selling, distributing, storing, or withdrawing from storage, for any purpose, gasoline or diesel fuel as herein defined.

(c) The following shall be exempt from the excise tax levied under this section:

(1) Gasoline or diesel fuel when used in governmental functions by the federal government or any agency of the federal government, the state or any agency of the state, county governing agencies, municipalities, and boards of education.

(2) Dyed diesel fuel.

(3) The sale of gasoline and diesel fuel in interstate commerce.

(4) Aviation fuel.

(5) A refinery that uses gasoline or diesel fuel in the refining process.

(6) A person who holds a federal permit to blend motor fuels under federal law who pays the federal excise tax on motor fuels directly to the federal government when the person uses gasoline in the state in the blending process.

(d) Every person upon whom the excise tax is levied shall submit to the county commission on forms prescribed by the county commission a true and correct statement of all distributions, sales, or withdrawals of gasoline or diesel fuel made during the previous month, any additional documentation the county commission may require, and payment of the excise tax due on or before the day of each calendar month for the preceding month as set by the county commission.

(e) Each distributor, retail dealer, or storer shall keep for not less than three years within this state at some certain place or office the books, documents, or papers which show the amount of distributions, sales, or withdrawals of gasoline and diesel fuel made in the county and taxed under this section.

(f) The county commission shall enforce this section and shall have the right for its agents to examine the books, reports, and accounts of every distributor, retail dealer, or storer of gasoline or diesel fuel on which the tax has been imposed.

(g)(1) The county commission may adopt any rules necessary to administer and provide for the collection of the tax. The county commission may administer and collect the excise tax or contract for the collection of the tax as authorized in Section 11-3-11.2, Code of Alabama 1975. If the county commission elects to administer and collect the excise tax or contract for the collection of the excise tax, the county commission shall have the same rights, remedies, power, and authority, including the right to adopt and implement the same procedures, available to the Department of Revenue if the excise tax was being administered, enforced, and collected by the department.

(2) Upon resolution of the county commission, the Department of Revenue may collect all taxes levied by the county pursuant to this section. All persons subject to and owing the tax shall pay the tax to the department and the payment shall be a full and complete discharge of all liability therefor to the county. The department may adopt reasonable rules to facilitate the collection of the tax. The department may recover all costs of collecting the tax in accordance with Section 11-3-11.3, Code of Alabama 1975, from the proceeds and shall pay the net amount remaining to the county.

(h) If any distributor, retail dealer, or storer of gasoline or diesel fuel fails to make monthly reports or fails to pay the tax imposed under this section, the tax shall be deemed delinquent and there shall be added to the amount of the tax a penalty of 25 percent. If, in the opinion of the county commission, a good and sufficient cause or reason is shown for the delinquency, the penalty may be waived. The county commission may make returns for delinquent taxpayers upon such information as it may reasonably obtain and add to the tax due the penalty. If any person is delinquent in the payment of any tax imposed pursuant to this section, the county commission may issue execution for the collection of the tax, directed to any sheriff of this state, who shall proceed to collect the tax in the manner now provided by law for the collection of delinquent taxes by the tax collector or revenue commissioner of the county and make return of execution to the county commission issuing the same. The tax and any penalties authorized by this section shall be a debt payable to the county by the person against whom the tax has been imposed or against whom the penalties have accrued, and all of the taxes and penalties shall be a lien upon the property in the county and elsewhere in this state of the person against whom the tax has been imposed and the penalties have accrued.

(i) Any distributor, retail dealer, or storer who violates this section or fails to comply with any reasonable rule adopted, may be restrained, and proper prosecution instituted in the county by the Attorney General, or by counsel as the county commission of the county appoints, from distributing, selling, storing, or withdrawing from storage any taxable gasoline or diesel fuel until the person complies with this section.

(j) The net proceeds of any tax levied pursuant to this section shall be paid into a county special revenue fund to be expended only for the maintenance, repair, replacement, or construction of roads and bridges in Washington County.

Section 3. (a) For the purposes of this section, the following words have the following meanings:

(1) COUNTY COMMISSION. The Washington County Commission.

(2) EQUIPMENT. Machinery or tools employed for agriculture, horticulture, livestock, grazing, lawn and garden, construction, industrial, maritime, mining, or forestry usage, including tractors.

(3) LEASING TAX. A tax paralleling the tax imposed by the state on the leasing or renting of tangible personal property statutes, including, but not limited to, Title 40, Chapter 12, Article 4, Code of Alabama 1975.

(4) SALES AND USE TAX. A tax paralleling the tax imposed by the state sales and use tax laws, including, but not limited to, Title 40, Chapter 23, Code of Alabama 1975.

(b)(1) Commencing January 1 following the election held pursuant to Section 4 of this act, the county commission may levy the following in addition to all other previously authorized taxes:

a. A one percent sales and use tax on gross sales; provided, however, the rate shall be one-half percent on the sale or use of any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed with the judge of probate.

b. A one percent leasing tax on the gross proceeds derived from the leasing or rental of any equipment or passenger automotive vehicle.

(2) The gross proceeds of all sales presently exempt under the state sales and use tax statutes are exempt from the taxes authorized by this section.

(c) The taxes levied by this section shall be collected by the Department of Revenue at the same time and in the same manner as state sales and use tax and leasing tax are collected. On or prior to the date the tax is due, each person subject to the tax shall file with the department a report in the form prescribed by the department. The report shall set forth, with respect to all sales and business transactions that are required to be used as a measure of the tax levied, a correct statement of the gross proceeds of all the sales and gross receipts of all business transactions. The report shall also include items of information pertinent to the tax as the department may require. Any person subject to a tax levied by this section may defer reporting credit sales until after their collection, and in the event the person defers reporting them, the person shall thereafter include in each monthly report all credit collections made during the preceding month, and shall pay the tax due at the time of filing the report. All reports filed with the department under this section shall be available for inspection by the county commission, or its designee.

(d) Each person engaging or continuing in a business subject to a tax levied by this section shall add to the sales price or leasing price, as applicable, and collect from the purchaser or leasor the amount due by the taxpayer because of the sale or lease. It shall be unlawful for any person subject to a tax levied by this section to fail or refuse to add to the sales price or lease price and to collect from the purchaser or leasor the amount required to be added to the sale or lease price. It shall be unlawful for any person subject to the tax levied by this section to refund or offer to refund all or any part of the amount collected or to absorb or advertise directly or indirectly the absorption or refund of any portion of the tax.

(e) The taxes levied by this section shall constitute a debt due Washington County. The tax, together with any interest and penalties, shall constitute and be secured by a lien upon the property of any person from whom the tax is due or who is required to collect the tax. The Department of Revenue shall collect the tax, enforce this section, and have and exercise all rights and remedies that the state or the department has for collection of the state sales and use tax and state leasing tax. The department may employ special counsel as is necessary to enforce collection of a tax levied by this section and to enforce this section. The department shall pay the special counsel any fees it deems necessary and proper from the proceeds of the taxes collected by it for the county.

(f) All provisions of state law with respect to the payment, assessment, and collection of the state sales and use tax and the state leasing tax, making of reports, keeping and preserving records, penalties for failure to pay the tax, promulgating rules with respect to state sales and use tax and state leasing tax, and the administration and enforcement of state sales and use tax and state leasing tax law that are not inconsistent with this section shall apply to the taxes levied under this section. The Commissioner of Revenue and the department shall have and exercise the same powers, duties, and obligations with respect to the tax levied under this section that are imposed on the commissioner and department by state sales and use tax and state leasing tax law. All provisions of the state sales and use tax and state leasing tax laws made applicable by this section to the tax levied under this section, and to the administration and enforcement of this section, are incorporated by reference and made a part of this section as if fully set forth herein.

(g) The Department of Revenue shall charge Washington County for collecting any tax levied under this section in an amount or percentage of total collections as may be agreed upon by the commissioner and the Washington County Commission. The charge shall not exceed five percent of the total amount of the tax collected in the county. The charge may be deducted each month from the gross revenues from the tax before certification of the amount of the proceeds due Washington County for that month. The Commissioner of Revenue shall pay into the State Treasury all amounts collected under this section as the tax is received by the department on or before the first day of each successive month. The commissioner shall certify to the state Comptroller the amount collected and paid into the State Treasury for the benefit of Washington County during the month immediately preceding the certification. The state Comptroller shall issue a warrant each month payable to the County Treasurer of Washington County in an amount equal to the certified amount which shall be paid into the county general fund.

(h) The proceeds of any tax levied under this section shall be deposited in a county special revenue fund to be expended only for the maintenance, repair, replacement, or construction of roads and bridges in Washington County, and may not be used for administrative purposes of any kind.

Section 4. Sections 2 and 3 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 general 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 __ of the 2017 Regular Session of the Legislature authorizing the county commission to levy a one-half percent sales tax on the sale of motor vehicles, a sales tax of one percent on all sales in the county except for motor vehicles, to levy a one percent leasing tax on the leasing of all heavy equipment and motor vehicles, and to levy an additional tax not to exceed two cents per gallon on gasoline and diesel fuels, with proceeds of the taxes to be used on road and bridge construction and maintenance in the county? 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 2 and 3 shall become operative immediately. If the majority of the votes are "No," this act shall be repealed and shall have no further effect. The judge of probate shall certify the results of the election to the Secretary of State.

Section 5. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Washington County

County Commissions

Taxation

Gasoline Tax

Revenue Department

Sales and Use Tax

Counties