Liquefied Petroleum Gas Fuel Tax.

Ala. Code tit. 40, ch. 17, art. 3A

in effect

Ala. Code § 40-17-160 Flat Fee on Vehicles Using Liquefied Petroleum Gas or Natural Gas as Fuel; Applicability of Additional Excise Tax.

40-17-160. Flat Fee on Vehicles Using Liquefied Petroleum Gas or Natural Gas as Fuel; Applicability of Additional Excise Tax. (a) In lieu of an excise tax on liquefied petroleum gas used to propel motor vehicles over the highways of this state, there is hereby levied an annual flat fee on the following classes of vehicles which require a motor vehicle license using liquefied petroleum gas as fuel. For all other purposes other than the excise tax, the term “liquefied petroleum gas” shall be included with the term gasoline as defined in Section 40-17-322: Class 1. Passenger automobiles, vans, and trucks and pickups under one ton.....................$75.00 Class 2. Recreational vehicles and vans and trucks one ton or over but with a rear axle carrying capacity of less than 14,000 pounds.......$85.00 Class 3. Bobtail trucks and equivalent vehicles to be defined as any other vehicle having the capacity of carrying a loaded rear axle weight of 14,000 pounds or more.......$150.00 Class 4. Tractor/trailer units..............................................................$175.00 (b) In the event an additional excise tax is implemented for alternative fuel vehicles, other than those powered by compressed natural gas or liquefied natural gas, such excise tax shall also be applicable to liquefied petroleum gas used to propel motor vehicles over the highways of this state in lieu of the annual fee provided for in this section. (Acts 1980, No. 80-739, p. 1503, §1; Acts 1981, 3rd Ex. Sess., No. 81-1136, p. 409, §1; Act 2017-229, §1.)

Ala. Code § 40-17-161 Annual Decal from Liquefied Petroleum Gas Board; Reduced Fee for Certain Vehicles; Application Period; Penalties.

40-17-161. Annual Decal from Liquefied Petroleum Gas Board; Reduced Fee for Certain Vehicles; Application Period; Penalties. (a) Every person owning and/or operating such vehicles shall make application for and obtain an annual decal from the Liquefied Petroleum Gas Board which shall serve as an identification marker that the flat fee has been paid. Each decal issued by the Liquefied Petroleum Gas Board shall not exceed a cost of five dollars ($5). The decal shall be in such form and of such size as the Liquefied Petroleum Gas Board shall prescribe. The decal shall be attached or affixed to the vehicle in the place and manner prescribed by the Liquefied Petroleum Gas Board. The decals provided for in this chapter shall be issued for a term that shall begin at April 1 of each year and expire on March 31 of the following year. If any vehicle is acquired, liquefied petroleum gas system installed or vehicle put in operation after September 30 the fee shall be one-half the flat fee stated in Section 40-17-160, or after December 31, the fee shall be one-fourth of the flat fee stated in Section 40-17-160. Owners of all newly converted vehicles must apply for the required decal as provided for in Section 40-17-160 within 10 days of the completion date in which the liquefied petroleum system was installed on the vehicle. Failure to submit an application within the 10-day period requires the payment of penalties as prescribed by Section 40-17-164. (b) The board administrator and the board inspectors shall have the power and authority to issue a uniform nontraffic citation to any person violating this section. For the purpose of enforcing this section, there shall be prima facie evidence that a connected, operational liquefied petroleum gas carburetion/injection system, which is part of a dual or switchable gasoline-liquefied petroleum gas system, has been in use, if there is liquefied petroleum gas in the liquefied petroleum gas tank. Any violation of this section shall constitute a Class B misdemeanor. (Acts 1980, No. 80-739, p. 1503, §2; Acts 1981, 3rd Ex. Sess., No. 81-1136, p. 409, §1; Act 2014-145, p. 353, §1; Act 2017-229, §1.)

Ala. Code § 40-17-162 Remittance of Flat Fee and Cost of Decal; Disposition of Proceeds.

40-17-162. Remittance of Flat Fee and Cost of Decal; Disposition of Proceeds. Every person required to make application for and receive a decal under this chapter shall at the time of making said application remit to the Liquefied Petroleum Gas Board the total amount of the flat fee due plus the cost of the decal issued. The proceeds of the flat fee shall be deposited by the Liquefied Petroleum Gas Board in the State Treasury to the credit of the Public Road and Bridge Fund. The proceeds of the decal issuance fee shall be deposited in the State Treasury to the credit of the Liquefied Petroleum Gas Board Fund. Any administration costs relating to such decals shall be paid by the Liquefied Petroleum Gas Board from such fees collected. Said costs are hereby appropriated from the Liquefied Petroleum Gas Board Fund. (Acts 1980, No. 80-739, p. 1503, §3.)

Ala. Code § 40-17-163 Rules and Regulations.

40-17-163. Rules and Regulations. The Liquefied Petroleum Gas Board is authorized to promulgate any rules and regulations necessary to carry out the provisions of this chapter. (Acts 1980, No. 80-739, p. 1503, §4.)

Ala. Code § 40-17-164 Penalty for Failure to Timely Obtain Decal; Disposition of Penalty.

40-17-164. Penalty for Failure to Timely Obtain Decal; Disposition of Penalty. Any person who fails to obtain a current decal within 30 days of the date the decal is required as provided in this chapter, shall be liable for a penalty of 20 percent of the fee in addition to the fee. The penalty shall be paid at the same time and in the same manner as the flat fee; and such penalty shall be deposited by the Liquefied Petroleum Gas Board in the State Treasury, to the credit of the Liquefied Petroleum Gas Board Fund. (Acts 1980, No. 80-739, p. 1503, §5; Act 2014-145, p. 353, §1.)

Ala. Code § 40-17-165 Tax on Out-of-State Vehicles; Remittance; Purchase of Decals for Out-of-State Vehicles.

40-17-165. Tax on Out-of-State Vehicles; Remittance; Purchase of Decals for Out-of-State Vehicles. If an out-of-state vehicle comes to a propane dealer or supplier in the State of Alabama to purchase fuel, the dealer must collect in lieu of any fees levied by this chapter an amount equal to the current Alabama motor fuel tax in effect as prescribed by subdivision (a)(2) of Section 40-17-325, and remit these funds to the Alabama LP-Gas Board before the 20th of the following month after the date of the sale. Decals for out-of-state vehicles can be purchased with decal fees and issuance fees to be paid as prescribed by Sections 40-17-160 and 40-17-161. (Acts 1980, No. 80-739, p. 1503, §6; Acts 1981, 3rd Ex. Sess., No. 81-1136, p. 409, §1; Act 2014-145, p. 353, §1; Act 2017-229, §1.)

Ala. Code § 40-17-166 Exemption of Certain Vehicles from Excise Tax.

40-17-166. Exemption of Certain Vehicles from Excise Tax. Any vehicles of the classes described in Section 40-17-160 owned by the state, county, or any incorporated municipality or agency, or instrumentality thereof, or any vehicle not requiring a license plate or motor vehicle license, including but not limited to forklift trucks and agricultural vehicles, shall be exempt from any excise tax levied by the provisions of this chapter. (Acts 1980, No. 80-739, p. 1503, §7; Acts 1981, 3rd Ex. Sess., No. 81-1136, p. 409, §1.)

Ala. Code § 40-17-167 Decal Requirement Suspended.

40-17-167. Decal Requirement Suspended. (a) The Legislature of Alabama makes the following findings and statements: (1) The reduction of the dependence on foreign oil is necessary to reserve and protect our national security. (2) Reliable and affordable energy is of great importance to all sectors of Alabama’s economy. (3) Long-term sustainability of energy supply and efficient and effective distribution of energy is becoming increasingly important to Alabama’s population growth and economic expansion. (4) The future energy needs of the state also present opportunities to diversify the state’s energy supply and provide new opportunities for Alabama-based clean energy technologies. (5) The use of existing technology and development of new technologies including compressed and liquefied natural gas should be encouraged as a way of producing energy with reduced emissions. (b) The Legislature recognizes that it is in the best interest of its citizens to remove existing barriers to implementing natural gas distribution for motor vehicles until such time as a comprehensive approach is established for regulating and taxing natural gas for motor vehicles. This includes temporarily eliminating the decals and associated fees that are currently required of owners or operators of motor vehicles using compressed and liquefied natural gas, as well as temporarily suspending any motor fuel excise taxes due on compressed or liquefied natural gas used as fuel for vehicles. (c)(1) The requirement to obtain a decal from the Liquefied Petroleum Gas Board, as well as any requirement to collect the motor fuel tax as prescribed in this chapter, are hereby suspended from April 9, 2014, until October 1, 2018. (2) This section shall not apply to the remainder of this article. (Act 2014-408, p. 1506, §§1, 2; Act 2016-468, 1st Sp. Sess., §1; Act 2017-229, §1.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026