Selling, distributing, or withdrawing from storage in Alabama, for any use, lubricating oils or greases. (Does not include products commercially known as “fuel oils” or “crude oil.”)

$.02 per gallon levied under Section 40-17-171.

$.04 per gallon levied under Section 40-17-220.

$.06 per gallon total.

(Eight pounds of grease equals one gallon.)

EXEMPTION

The United States Government, governing bodies of counties and incorporated municipalities, city, and county boards of education, the Alabama Institute for Deaf and Blind, the Department of Youth Services school district, and private and church schools as defined in Section 16-28-1 are exempt from the $.02 per gallon tax levied under Section 40-17-171.

Governing bodies of counties and incorporated municipalities, city and county boards of education, the United States Government, sales for use in off-road vehicles, aircraft, ships, vessels, barges, railroad locomotives, and railroad equipment, private and church school systems as defined in Section 16-28- 1, Alabama Institute for Deaf and Blind, Department of Youth Services, and lubricating products sold for agricultural purposes are specifically exempt from the $.04 per gallon tax levied under Section 40-17-220.

$.02 revenues – General Fund.

$.04 revenues:

• 45% – State Road and Bridge Fund.
• 55% – To be shared by the counties and their municipalities as follows:
  • 25% of the net tax is distributed equally to the 67 counties.
  • 30% of the net tax is allocated to the 67 counties based on population.
    • 10% of county’s share received shall be allocated to each municipality therein, based on a population ratio.
    • Remaining portion to the county.