First sale or import of dyed diesel fuel, dyed kerosene, or lubricating oil in Alabama. Gasoline or undyed diesel sold by a supplier or permissive supplier at the rack to a licensed exempt entity other than the federal government, or dyed diesel or dyed kerosene sold to an importer that does not have a valid inspection fee permit. 

Section 8-17-87 

• Dyed diesel fuel – $.02 per gallon.
• Dyed kerosene – $.01 per gallon.
• Lubricating oil – $.15 per gallon. 
• Gasoline or undyed diesel fuel sold by a supplier at the rack to a licensed exempt entity other than the federal government – $.02 per gallon.
• Dyed diesel fuel or dyed kerosene used to operate maritime vessels, tractors for agricultural purposes, or railroad locomotives, or used in the treatment or preservation of wood products – $.00025 per gallon.

Exemption

Section 8-17-87

• Aviation gas and jet fuel 

Section 8-17-99 

Dyed Diesel Fuel or Dyed Kerosene

• Federal Government 
• Exports by bonded distributor
• Sales to other bonded distributors 
• Sales for use in turbines or steam boilers

Lubricating Oil 

• Federal Government 
• Exports by bonded distributor
• Sales to other bonded distributors 

Distributed to the Inspection Fee Fund which is further distributed as follows: 

5% or no less than $175,000, whichever is greater, to the Agricultural Fund. 

a) 13.87% of balance of proceeds distributed equally to the counties. 

b) $408,981 distributed to Department of Transportation Public Road and Bridge Fund. 

c) 2.76% of balance of proceeds allocated among incorporated municipalities. 

d) 5% of balance of proceeds after distributions to (a) and (c) is distributed to Agricultural Fund. 

e) 2.5% of balance of proceeds after (a), (b), (c), and (d) or no less than $87,500, whichever is greater, is distributed to ALDOR. 

f) Balance after (a), (b), (c), (d), and (e) is distributed to the Department of Transportation Public Road and Bridge Fund, as provided in Section 8-17-91.