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Terminal Excise Tax (Aviation Fuel Tax)

Tax Types >
  • Terminal Excise Tax (Aviation Fuel Tax)

Resources

Authority

Sections 40-17-325(a)(3), 40-17-326, and 40-17-360, Code of Alabama 1975.

Fuel used to propel powered aircraft. Tax is imposed upon the withdrawal from the terminal, upon import, or when the product is blended.

Aviation gasoline – $.095 per gallon. Jet fuel – $.035 per gallon.

Section 40-17-329 exempts the following:

1) Having first paid the tax owed under Section 40-17-325, an exporter shall have the right to apply to ALDOR on a monthly basis for a refund of the taxes paid to this state on the gallons of motor fuel that are ultimately exported by the exporter. ALDOR will require the exporter to provide proof of payment of the applicable destination state excise taxes before issuing a refund.

2) Having first paid the tax owed under Section 40-17-325, a licensed aviation fuel purchaser shall have the right to apply to ALDOR on a monthly basis for a refund of the taxes paid to this state on the gallons of jet fuel sold to a certificated or licensed air carrier that purchases jet fuel within this state and uses the jet fuel to propel aircraft powered by jet or turbine engines operated in scheduled all-cargo operations being conducted on international flights or in international commerce.

3) Having first paid the tax to its vendor, the entities listed below shall have the right to apply to ALDOR for a refund on a quarterly basis for any purchases of motor fuel (Note: These entities that have a Motor Fuel Exemption License may purchase tax-free from a licensed distributor):

  • The United States government or any agency thereof.
  • Any county governing body of this state.
  • Any incorporated municipal governing body of this state.
  • City and county boards of education of this state.
  • The Alabama Institute for Deaf and Blind, the Department of Youth Services school district, and private and church school systems as defined in Section 16-28-1, and which offer essentially the same curriculum as offered in grades K-12 in the public schools of this state.

4) Having first paid the tax, a licensed air carrier with a hub operation within this state shall have the right to apply to ALDOR for a refund on a quarterly basis for any purchases of jet fuel used to propel aircraft.

Department of Transportation.