Motor Fuels Tax Frequently Asked Questions
WHAT KINDS OF TAXES ARE ADMINISTERED BY THE MOTOR FUELS SECTION? The excise taxes administered are: gasoline, diesel fuel, aviation, wholesale oil / import license, lubricating oil, scrap tire environmental fee, motor carrier mileage tax, and local excise taxes for Bullock County, Cullman County, and Lowndes County.
WHERE DO I FIND THE FAQS FOR THE NEW ALABAMA TERMINAL EXCISE TAX – MOTOR FUELS? You can click on the following link to find the FAQs: http://revenue.alabama.gov/motorfuels/racktax.html
WHERE CAN I GET INFORMATION ON THE ALABAMA UNDERGROUND AND ABOVEGROUND STORAGE TANK TRUST FUND ACT? The Alabama Underground and Aboveground Storage Tank Trust Fund are administered by the Tobacco Tax Section of the Business & License Tax Division. For more information regarding the Act, click here.
WHEN ARE THE TAX RETURNS DUE? The terminal excise tax returns for Supplier, Importer, Exporter, and Blender are due on the 22nd of the month. Lubricating oil, local counties, and scrap tire environmental fee are due on the 20th of each month. The Wholesale Oil / Import License Fee return is an annual return that is due on October 14th of each year. Motor carrier mileage tax is due on the 15th of each month. The Transporter and Terminal Operator monthly reports are due the last day of each calendar month following the period covered. The annual Terminal Operator report is due the last day of January for the prior calendar year.
IF THE DUE DATE FALLS ON A WEEKEND OR A HOLIDAY, WHEN IS THE DUE DATE? The return must be submitted electronically or postmarked on or before the next business day based on the return type's mandatory filing requirements. If you remit payment by EFT through My Alabama Taxes, then your payment must be initiated on or before the due date by 4:00pm CST.
HOW DO I APPLY FOR A LICENSE FOR THE ALABAMA TERMINAL EXCISE TAX (MOTOR FUELS), AND LUBRICATING OIL? For the Alabama Terminal Excise Tax (Motor Fuels), you find the paper application at http://revenue.alabama.gov/motorfuels/racktax.html or you can submit the application electronically through My Alabama Taxes by going to https://myalabamataxes.alabama.gov/ and by choosing "Register a New Business or Tax Account." For the Lubricating Oil Permit Application, you can go to http://revenue.alabama.gov/motorfuels/mfforms.htm and choose Form: SUBT-LOAP and mail in the completed application. If you have any questions, then you can call the Motor Fuels Section at (334) 242-9608 and speak with a representative of the Section.
WHAT IS THE TAX RATE? The rate is $.06 per gallon.
WHAT PRODUCTS ARE INCLUDED? Any product that performs a lubricating function, i.e. grease, transmission fluid, motor oil, and Slick 50. The definition of lubricating oil per Section 40-17-170, Code of Alabama 1975, is "Any devices or substitutes therefor, commonly used in lubricating or oiling engines, bearings, journals, axles, hubs, and other parts of machinery; provided, that nothing contained in this article shall be held to apply to those products known commercially as "kerosene oil," "fuel oil," or "crude oil.""
IS THE TRACTOR HYDRAULIC/TRANSMISSION FLUID SUBJECT TO THE EXCISE TAX OR SALES TAX? Excise taxable, because the primary function is to lubricate the engine and gears.
HOW DO I CONVERT POUNDS TO GALLONS? Divide the total pounds by 8.
IS LUBRICATING OIL BOARDED ON A VESSEL AT THE PORT OF MOBILE TAXABLE? If it is sold from one permit holder to another it is not taxable. If it is sold to an unlicensed entity, it is considered taxable. The Port of Mobile is considered to be a part of the State, so title would be changing in Alabama.
WHAT IS THE ACCEPTABLE METHOD OF FILING MY LUBRICATING OILS TAX RETURN? Beginning with the October 2012 return, it is mandatory that these returns are filed online through My Alabama Taxes (MAT) at https://myalabamataxes.alabama.gov.
WHERE DO I FIND A LIST OF ACTIVE LUBRICATING OILS PERMIT HOLDERS? The list of active lubricating oils permit holders can be found at https://myalabamataxes.alabama.gov.
WHEN IS THE LUBRICATING OILS RETURN/PAYMENT DUE? The lubricating oils excise tax return and payment are both due by 4:00pm CST on the 20th of the month following the month that the transaction took place.
WHAT LOCAL EXCISE TAXES DOES THE DEPARTMENT ADMINISTER AND WHAT ARE THE TAX RATES? The department administers Bullock, Lowndes, and Cullman county local fuel taxes. Click here to view the tax rates administered by the Department of Revenue. (This listing also includes local gasoline tax rates based on information submitted by the localities. You may need to verify the rates with the locality for any of the non-administered cities and counties.)
HOW DO I FILE AND PAY MY STATE ADMINISTERED LOCAL FUEL TAXES FOR BULLOCK, LOWNDES, AND CULLMAN COUNTIES? You can file a paper return that can be found http://revenue.alabama.gov/motorfuels/mfforms.htm and by choosing Form SUBT:MFCO for Bullock and Lowndes Counties and by choosing Form SUBT:CUL for Cullman County.
Also, you have the option to file through My Alabama Taxes (MAT) at https://myalabamataxes.alabama.gov. You will need to be registered in MAT to file the return. If you are already registered in MAT, then you can log into MAT and "Add Access to an Account."
WHAT IS THE WHOLESALE OIL LICENSE FEE RATE? The fee is $.0075 per gallon of diesel fuel.
WHAT PRODUCTS ARE SUBJECT TO THE WHOLESALE OIL/IMPORT LICENSE FEE? The fee is charged on diesel fuel. Diesel fuel includes undyed diesel fuel, dyed diesel fuel, undyed kerosene, dyed kerosene, special fuels, and blended fuels which contain diesel fuel. Lube oil is no longer included in the computation.
This page last updated June 26, 2013.