Standards and Inspections Generally.

Ala. Code tit. 8, ch. 17, art. 5, div. 1

in effect

Ala. Code § 8-17-80 Definitions.

8-17-80. Definitions. (a) The following words and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: (1) AVIATION GASOLINE. Motor fuel designed for use in the operation of aircraft other than jet aircraft, and sold or used for that purpose. (2) BIODIESEL FUEL. Any motor fuel or mixture of motor fuels that is derived, in whole or in part, from agricultural products or animal fats, or the wastes of such products or fats, and is advertised as, offered for sale as, suitable for use as, or used as motor fuel in a diesel engine. (3) BLENDED FUEL. A mixture composed of gasoline or diesel fuel and any other liquid that can be used as a motor fuel in a highway vehicle. (4) BOARD. The Alabama Board of Agriculture and Industries. (5) BRAND. The trade name or other designation under which a particular petroleum product is sold, offered for sale, or otherwise identified. (6) BULK TRANSFER. Any transfer of motor fuel from one location to another by pipeline tender or marine delivery within a bulk transfer/terminal system, including, but not limited to, the following: a. The movement of motor fuel from a refinery or terminal to a terminal by marine vessel or barge. b. The movement of motor fuel from a refinery or terminal to a terminal by pipeline. c. The book or in-tank transfer of motor fuel within a terminal between licensed suppliers prior to the completion of removal across the rack. d. A two-party exchange between licensed suppliers or between licensed suppliers and permissive suppliers. (7) BULK TRANSFER/TERMINAL SYSTEM. The motor fuel distribution system consisting of refineries, pipelines, marine vessels, and terminals. (8) BULK USER. A person who receives into his or her own storage facilities, in transport truck lots, taxable motor fuel for his or her own consumption. (9) COMMISSIONER. The Alabama Commissioner of Agriculture and Industries. (10) DEPARTMENT. The Alabama Department of Agriculture and Industries. (11) DIESEL FUEL. Any liquid that is advertised, offered for sale, or sold for use as or used as a motor fuel in a diesel-powered engine. Diesel fuel includes #1 and #2 fuel oils, kerosene, special fuels, and blended fuels which contain diesel fuel, but shall not include gasoline or aviation fuel. (12) DYED DIESEL FUEL. Diesel fuel that meets the dyeing and marking requirements of Section 4082, Title 26 of the United States Code. (13) DYED KEROSENE. Kerosene that meets the dyeing and marking requirements of Section 4082, Title 26 of the United States Code. (14) GASOHOL. A blended motor fuel composed of gasoline and motor fuel grade alcohol. (15) GASOLINE. Any product commonly or commercially known as gasoline, regardless of classification, that is advertised, offered for sale, or sold for use as or used as motor fuel in an internal combustion engine, including gasohol and blended fuel which contains gasoline. Gasoline also includes gasoline blendstocks as defined under Section 4081, Title 26 of the United States Code and the regulations promulgated thereunder. Gasoline does not include special fuel or aviation gasoline sold to a licensed aviation fuel purchaser for use in an aircraft motor. (16) IMPORT. To bring petroleum products into this state for sale, use, or storage by any means of conveyance other than in the fuel supply tank of a motor vehicle. Petroleum products delivered into this state from out-of-state by or for the seller constitutes an import by the seller. Petroleum products delivered into this state from out-of-state by or for the purchaser constitutes an import by the purchaser. (17) IMPORTER. A person who imports petroleum products into this state. (18) INSPECTION FEE PERMIT HOLDER. A person to whom the Department of Revenue has issued an inspection fee permit. (19) K-1 KEROSENE. A petroleum product having an A.P.I. gravity of not less than 40 degrees, at a temperature of 60 degrees Fahrenheit and a minimum flash point of 100 degrees Fahrenheit, and which meets American Society for Testing Materials Standard D-3699 as in effect on January 1, 1999. (20) KEROSENE. All grades of kerosene, including, but not limited to, the two grades of kerosene, No. 1-K and No. 2-K, commonly known as K-1 kerosene and K-2 kerosene, respectively, described in the American Society for Testing Materials Standard D-3699, in effect on January 1, 1999, and kerosene-type jet fuel described in the American Society for Testing Materials Standard D-1655 and military specifications MIL-t-5624r and MIL-t-83133d (grades jp-5 and jp8) and any grade described as kerosene or kerosene-type jet fuel by the Internal Revenue Code and administrative guidance promulgated thereunder. (21) LUBRICATING OIL. Those products of petroleum that are commonly used in lubricating or oiling engines and any devices or substitutes for such products of petroleum. (22) NET GALLONS. The amount of dyed diesel fuel and dyed kerosene measured in gallons when adjusted to a temperature of 60 degrees Fahrenheit and a pressure of fourteen and seven-tenths pounds pressure per square inch. (23) PERMISSIVE SUPPLIER. An out-of-state supplier that elects, but is not required, to have a supplier’s license as required in Section 40-17-332. (24) PERSON. Any natural person, firm, partnership, association, corporation, receiver, trust, estate, or other entity as well as any other group or combination thereof acting as a unit. (25) PERSON FIRST SELLING. Any person, as herein defined, who first sells dyed diesel fuel, dyed kerosene, and/or lubricating oil in Alabama on which an inspection fee is imposed by this article. The first seller of dyed diesel fuel, dyed kerosene, and/or lubricating oil must obtain an inspection fee permit by making application to the Department of Revenue. (26) PETROLEUM PRODUCTS. Gasoline, diesel fuel, and lubricating oil. (27) RETAILER. A person other than a wholesale distributor that engages in the business of selling or distributing taxable motor fuel to the end user within this state. (28) REVENUE COMMISSIONER. The Commissioner of the Alabama Department of Revenue. (29) SPECIAL FUEL. Any gas or liquid, other than gasoline, used or suitable for use as motor fuel in an internal combustion engine or motor to propel any form of vehicle, machine, or mechanical contrivance, and includes products commonly known as natural or casing-head gasoline, biodiesel fuel, and transmix. Special fuel does not include any petroleum product or chemical compound such as alcohol, industrial solvent, or lubricant, unless blended in or sold for use as motor fuel in an internal combustion engine. (30) STATE. The State of Alabama. (31) SUPPLIER. A person who is subject to the general taxing jurisdiction of this state and registered under Section 4101 of the Internal Revenue Code for transactions in motor fuel in the bulk transfer/terminal distribution system and who owns motor fuel in the bulk transfer/terminal system, or a person who receives motor fuel in this state pursuant to a two-party exchange. A terminal operator shall not be considered a supplier based solely on the fact that the terminal operator handles motor fuel consigned to it within a terminal. (32) UNDYED DIESEL FUEL. Diesel fuel that has not been dyed in accordance with the Internal Revenue Service fuel dyeing provisions. (b) The definitions set forth in this section shall be deemed applicable whether the words defined are herein used in the singular or plural. (c) Any pronoun or pronouns used herein shall be deemed to include both singular and plural and to cover all genders. (Acts 1971, No. 1403, p. 2363, §1; Acts 1971, 3rd Ex. Sess., No. 339, p. 4643, §1; Act 2015-54, p. 198, §1; Act 2017-296, §1.)

Ala. Code § 8-17-81 Determination and Adoption of Standards and Methods of Tests; Promulgation of Rules; Effect of Prior Standards.

8-17-81. Determination and Adoption of Standards and Methods of Tests; Promulgation of Rules; Effect of Prior Standards. (a) The Board of Agriculture and Industries shall have the power and duty to: (1) Determine and adopt standards of minimum specifications for petroleum products, and the various classifications and kinds thereof, as to safety, purity, freedom from objectionable substances, distillation tests, heat-producing qualities, fire tests, and efficiency which are not inconsistent with the specifications for the same products that are published from time to time by the United States Department of Commerce; and (2) Make changes from time to time in such standards, all as the board may deem necessary to provide for the public safety and to provide that such petroleum products are satisfactory and efficient for the purposes for which they may be sold, offered for sale, stored, or used in the state; provided, that such standards shall not be adopted or altered by the board until after a specified date when any person in interest may appear before the board with reference to such standards. (b) The Board of Agriculture and Industries shall prescribe the methods of tests to be used in determining whether or not petroleum products are in compliance with such standards as shall be adopted as authorized in this section. Any testing and analysis required to be performed may be performed as provided in Section 2-2-33. (c) The Board of Agriculture and Industries shall have authority to promulgate rules and regulations necessary to secure the safe handling of petroleum products and other such rules and regulations not inconsistent with the provisions of this division as in the judgment of the board may be necessary to the proper enforcement of this division. (d) The standards of minimum specifications heretofore promulgated by the Board of Agriculture and Industries pursuant to authorization in either Article 21 of Chapter 1 of Title 2 of the Code of Alabama of 1940, or Division 2 of Article 26 of Chapter 1, shall constitute the standards of minimum specifications applicable under this division until such time as the board shall adopt standards pursuant to the provisions of this division. (Acts 1971, No. 1403, p. 2363, §5; Act 2015-262, §2.)

Ala. Code § 8-17-82 Labeling Requirement.

8-17-82. Labeling Requirement. (a) Each person selling, offering for sale, storing or using in the state any petroleum product must label, or cause to be labeled, each tank car, tank, barrel, pump, or other container in which such petroleum product is contained or marketed with the words “guaranteed legal standards” and with an additional word or words denoting the precise character of the petroleum product in the container so labeled. Each word in such label shall be legibly printed in letters not less than one-half inch in height. (b) An alternate manner for container and other labeling information as required under subsection (a) of this section may be prescribed by the Board of Agriculture and Industries pursuant to rules and regulations which shall be consistent with the evident intent and purposes of this section. (c) In addition to the requirements of subsections (a) and (b) of this section each person selling, offering for sale, storing or using in the state any petroleum product to be used as a motor fuel containing a minimum of 10 percent blend of ethyl alcohol of a purity of at least 99 percent denatured in conformity with one of the approved methods set forth by the U.S. Department of Treasury Division of Alcohol, Tobacco and Firearms and derived from agricultural or forest products or other renewable resource products commonly known as gasohol must label or cause to be labeled each container, pump, or dispenser from which such petroleum product is sold or dispensed with the word “GASOHOL.” Each such container or pump shall be conspicuously, clearly and distinctly labeled on each side which faces the motor vehicle and readily visible in an upright position with the word “GASOHOL” printed in black letters at least three inches in height and one-quarter inch in width on a yellow background. The Board of Agriculture and Industries shall have authority to make and issue rules and regulations relating to the implementation of the provisions of this subsection; provided, however, no alternate method of labeling shall be prescribed by such board for this subsection nor shall the requirements of this subsection be in any manner delayed. (Acts 1971, No. 1403, p. 2363, §3; Acts 1971, 3rd Ex. Sess., No. 339, p. 4643, §2; Acts 1987, No. 87-277, p. 385, §1.)

Ala. Code § 8-17-83 Adulteration or Lowering of Standard Prohibited.

8-17-83. Adulteration or Lowering of Standard Prohibited. It shall be unlawful for any person who has purchased for resale any petroleum product in respect of which an inspection fee has been paid or which has been designated “guaranteed legal standard” to adulterate or in any way lower the standard of the said petroleum product by the addition of any other liquid or substance, including, without limitation to, any other petroleum product, or to sell, offer for sale, store or use any petroleum product so adulterated or lowered in standard. (Acts 1971, No. 1403, p. 2363, §8.)

Ala. Code § 8-17-84 Records to Be Kept; Preservation and Inspection of Records; Regulations as to Keeping of Records.

8-17-84. Records to Be Kept; Preservation and Inspection of Records; Regulations as to Keeping of Records. (a) Each person required to be licensed under Section 40-17-332(a), (b), or (f) for gasoline, or permitted under Section 8-17-96 for dyed diesel fuel, dyed kerosene, or lubricating oil, and each bulk user and retailer shall keep and maintain all records pertaining to the petroleum products received, produced, manufactured, refined, compounded, used, sold, imported, or delivered, together with delivery tickets, invoices, bills of lading, and other pertinent records and papers required by the Department of Revenue for the reasonable administration of this article, for a period of no less than three years. (b) All such records shall be preserved for a period of three years and shall at all times during the business hours of the day be subject to inspection by the Revenue Commissioner or his or her agents or representatives. (c) The Revenue Commissioner may prescribe regulations respecting the keeping of the records required in this section and the forms thereof. (Acts 1971, No. 1403, p. 2363, §4; Act 2015-54, §1.)

Ala. Code § 8-17-85 Examinations and Tests; Permit Required for Sale, Storage, Etc.; Permit Application, Fee and Expiration Date; Nonapplicability of Section to Certain Persons.

8-17-85. Examinations and Tests; Permit Required for Sale, Storage, Etc.; Permit Application, Fee and Expiration Date; Nonapplicability of Section to Certain Persons. (a) All petroleum products sold, offered for sale, used or stored in the state shall be subject to examination and tests to determine the safety of such products and their value and efficiency for the purposes for which they are sold, offered for sale, used or stored. (b) Before selling, offering for sale, storing, or using petroleum products in the state, the person desiring to sell, offer for sale, store, or use such petroleum products in the state must submit to the Commissioner of Agriculture and Industries a written application for a permit, upon forms furnished by the commissioner, setting forth: (1) The name and brand under which any petroleum product is to be sold, offered for sale, stored or used; (2) In case said petroleum product is to be sold, offered for sale, stored or used in tanks, barrels, cans or other containers, the number of gallons, the capacity of the containers in which it is to be sold, offered for sale, stored or used, the brand applicable to each particular petroleum product referred to in the application; (3) The name or names and address of the manufacturers or dealers from which the said petroleum product was procured; and (4) A statement expressed in terms of the standards adopted by the Board of Agriculture and Industries pursuant to the provisions of Section 8-17-81, as to the standard guaranteed for the petroleum product in respect of which the application is made. The said statement may simply set forth that the petroleum product referred to therein complies with the standard applicable to that particular product that is specified in the regulations as to standards that are provided for in the said Section 8-17-81; provided, that if the person making the application claims a higher standard for any particular petroleum product, he may make a statement to that effect specifying the standard guaranteed. (c) As soon as practicable after the receipt of such statement, the Commissioner of Agriculture and Industries shall issue to the applicant a permit, provided said statement shows the petroleum product to be sold or offered for sale or stored or used in the state is equal to or above the minimum standard required in the state for such petroleum product. (d) Such applicant shall pay to the Commissioner of Agriculture and Industries, as a permit fee, the sum of &dollar;10 for each different brand specified in the application for a permit. (e) All such permits shall expire on September 30 of the fiscal year for which they were issued. (f) This section shall not apply to any person selling, offering for sale, storing, or using petroleum products obtained from a person that has complied with the provisions of this division with respect to the same petroleum products. (Acts 1971, No. 1403, p. 2363, §2; Acts 1981, No. 81-793, p. 1395, §1.)

Ala. Code § 8-17-86 Duty to Test Samples; Certificate of Tests.

8-17-86. Duty to Test Samples; Certificate of Tests. (a) It is the duty of the Commissioner of Agriculture and Industries to secure samples of all petroleum products sold, offered for sale, stored or used in the state and to determine: (1) Whether or not such petroleum products are sold, offered for sale, stored or used in correct measure or quantity claimed by the person selling or offering for sale or storing or using such petroleum products; and (2) Whether the same is of legal standard and of the standard advertised. (b) The Commissioner of Agriculture and Industries shall test, or cause to be tested, such samples in the manner provided by the rules and regulations made by the Board of Agriculture and Industries pursuant to authorization in Section 8-17-81, and shall make a certificate of such test, a copy of which certificate shall be furnished by the commissioner upon request to the person from whom the sample was obtained. (Acts 1971, No. 1403, p. 2363, §6.)

Ala. Code § 8-17-87 Inspection Fee.

8-17-87. Inspection Fee. (a) An inspection fee is imposed on the ultimate consumer of gasoline at the rate of two cents ($.02) per gallon, if the excise tax levied on gasoline under Section 40-17-325(a)(1) is refunded by the Department of Revenue unless the ultimate consumer is specifically exempted from the inspection fee by this code. The Department of Revenue is authorized to reduce the excise tax refund by the amount due for the inspection fee. (b) An inspection fee is imposed on the ultimate consumer of undyed diesel fuel at the rate of two cents ($.02) per gallon, if the excise tax levied on diesel fuel under Section 40-17-325(a)(2) is refunded by the Department of Revenue unless the ultimate consumer is specifically exempted from the inspection fee by this code or unless the undyed diesel fuel is subject to a reduced rate inspection fee in subsection (i). The Department of Revenue is authorized to reduce the excise tax refund by the amount due for the inspection fee. (c) An inspection fee of two cents ($.02) per gallon is imposed on the first sale within this state or upon importation into this state of dyed diesel fuel unless (1) the purchaser or importer is an inspection fee permit holder, in which case the inspection fee is imposed at the point the inspection fee permit holder makes a sale to a purchaser who is not an inspection fee permit holder, or (2) the purchaser is subject to a reduced rate inspection fee in subsections (e), (f), (g), and (h). The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. If the importer purchases dyed diesel fuel destined for Alabama from a supplier or permissive supplier and the importer is not an inspection fee permit holder and does not have a valid inspection fee permit issued by the Alabama Department of Revenue, the supplier or permissive supplier shall collect and remit the inspection fee imposed by this article. If the importer brings dyed diesel fuel in from bulk storage outside the terminal system, the importer is responsible for collecting and remitting the inspection fee imposed by this article. (d) An inspection fee of one cent ($.01) per gallon is imposed on the first sale within this state or upon importation into this state of dyed kerosene unless (1) the purchaser or importer is an inspection fee permit holder, in which case the inspection fee is imposed at the point the inspection fee permit holder makes a sale to a purchaser who is not an inspection fee permit holder, or (2) the purchaser is subject to a reduced rate inspection fee in subsections (e), (f), (g), and (h). The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. If the importer purchases dyed kerosene destined for Alabama from a supplier or permissive supplier and the importer is not an inspection fee permit holder and does not have a valid inspection fee permit issued by the Alabama Department of Revenue, the supplier or permissive supplier shall collect and remit the inspection fee imposed by this article. If the importer brings dyed kerosene in from bulk storage outside the terminal system, the importer is responsible for collecting and remitting the inspection fee imposed by this article. (e) Dyed diesel fuel and dyed kerosene that is used by the ultimate consumer thereof as motor fuel to operate boats, yachts, ships, or other maritime vehicles, whether such boats, yachts, ships, or other maritime vehicles are used commercially or for pleasure, shall be subject to the reduced inspection fee of one fortieth of $.01 ($.00025) per gallon. This reduced rate only applies to purchases by the ultimate consumer directly from an inspection fee permit holder. The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. (f) Dyed diesel fuel or dyed kerosene used by the ultimate consumer thereof to propel or operate tractors which are not operated on public highways but which are used exclusively in preparing and cultivating land, harvesting any agricultural commodity, or for other agricultural purposes, including pasture and hay production; provided, however, that the term tractors as used herein shall not include automobiles, trucks, pickups, trailers, semitrailers, or other such vehicles, shall be subject to the reduced inspection fee of one fortieth of $.01 ($.00025) per gallon. This reduced rate only applies to purchases by the ultimate consumer directly from an inspection fee permit holder. The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. (g) Dyed diesel fuel or dyed kerosene that is of the types customarily used as, and that is intended to be used only as, fuel to propel railroad locomotives, shall be subject to the reduced inspection fee of one fortieth of $.01 ($.00025) per gallon. This reduced rate only applies to purchases by the ultimate consumer directly from an inspection fee permit holder. The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. (h) Dyed diesel fuel or dyed kerosene used by the ultimate consumer thereof as a solvent or other agent in the treatment or preservation of wood products, shall be subject to the reduced inspection fee of one fortieth of $.01 ($.00025) per gallon. This reduced rate only applies to purchases by the ultimate consumer directly from an inspection fee permit holder. The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. (i) An inspection fee is imposed on the ultimate consumer of undyed diesel fuel at the rate of one fortieth of $.01 ($.00025) per gallon, if the excise tax levied on undyed diesel fuel under Section 40-17-325(a)(2) is refunded by the Department of Revenue and the ultimate consumer specifically used the undyed diesel fuel: (1) To operate boats, yachts, ships, or other maritime vehicles, whether such boats, yachts, ships, or other maritime vehicles are used commercially or for pleasure; (2) To propel or operate tractors which are not operated on public highways but which are used exclusively in preparing and cultivating land, harvesting any agricultural commodity, or for other agricultural purposes, including pasture and hay production; provided, however, that the term tractors as used herein shall not include automobiles, trucks, pickups, trailers, semitrailers, or other such vehicles; (3) To propel railroad locomotives; or (4) As solvent or other agent in the treatment or preservation of wood products. The Department of Revenue is authorized to reduce the excise tax refund by the amount due for the inspection fee. (j) An inspection fee of fifteen cents ($.15) per gallon is imposed on the person first selling lubricating oil in this state or importing lubricating oil into this state, regardless of whether the excise taxes levied on lube oil under Sections 40-17-171 and 40-17-220 are paid, unless the purchaser or importer is an inspection fee permit holder, in which case the inspection fee is imposed at the point the inspection fee permit holder makes a sale to a purchaser who is not an inspection fee permit holder. The person first selling, the person importing, or the inspection fee permit holder shall collect the fee imposed by this article. (k) An inspection fee of two cents ($.02) per gallon is imposed on removal within this state of gasoline and undyed diesel fuel from the terminal using the terminal rack, other than by bulk transfer, if the supplier sells the gasoline or undyed diesel fuel to a licensed entity which is exempt from the excise tax levied on gasoline or diesel fuel under Section 40-17-325(a); unless the purchaser is the federal government. The supplier shall collect the inspection fee imposed by this article from the purchaser at the time of sale of the gasoline or undyed diesel fuel. (l) An inspection fee of two cents ($.02) per gallon is imposed at the time gasoline and undyed diesel fuel is imported into this state, other than by bulk transfer, for delivery to a destination in this state, if the supplier sells the gasoline or undyed diesel fuel to a licensed entity which is exempt from the excise tax levied on gasoline or diesel fuel under Section 40-17-325(a); unless the purchaser is the federal government. The supplier or permissive supplier shall collect the inspection fee imposed by this article from the person who imports the gasoline or undyed diesel fuel into this state. (m) In each subsequent sale of petroleum products on which the inspection fee has been paid, the amount of the inspection fee shall be added to the selling price so that the inspection fee is paid ultimately by the person using or consuming the petroleum product. (n) Petroleum products in a refinery, a pipeline, a terminal, or a marine vessel transporting petroleum products to a refinery or terminal is in the bulk transfer/terminal system. Petroleum products in a motor fuel storage facility including, but not limited to, a bulk plant that is not part of a refinery or terminal, in the motor fuel supply tank of any engine or motor vehicle, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. (o) The inspection fee provided for in this section is in addition to all other fees and all taxes payable with respect to petroleum products. The inspection fee shall be paid on the net gallons of dyed diesel fuel or dyed kerosene. (p) Aviation gasoline and aviation jet fuel are exempt from the inspection fee. (Acts 1971, No. 1403, p. 2363, §9; Acts 1971, 3rd Ex. Sess., No. 339, p. 4643, §3; Acts 1973, No. 641, p. 949, §1; Acts 1984, No. 84-185, p. 279, §1; Act 2004-546, p. 1164, §1; Act 2015-54, p. 198, §1; Act 2017-296, §1.)

Ala. Code § 8-17-88 Sale, Storage, Etc., of Nonstandard Products Prohibited; Suspension from Sale, Condemnation, Etc., of Nonstandard Products.

8-17-88. Sale, Storage, Etc., of Nonstandard Products Prohibited; Suspension from Sale, Condemnation, Etc., of Nonstandard Products. (a) No person shall sell, offer for sale, store, use or bring to rest in the state for sale, offer for sale, use or storage in the state any petroleum product which fails to comply with the standards adopted by the Board of Agriculture and Industries. (b) Publicity shall be given to any failure to comply with the standards as the Commissioner of Agriculture and Industries shall prescribe. (c) The sale, offer for sale, storage or use of petroleum products that fall below the standards fixed by the Board of Agriculture and Industries is hereby declared illegal, and such petroleum products shall be subject to suspension from sale, offer for sale, storage or use and may be condemned and sold as provided in Sections 2-2-30 through 2-2-37. (Acts 1971, No. 1403, p. 2363, §7.)

Ala. Code § 8-17-90 Driver of Delivery Vehicle to Deliver Invoice.

8-17-90. Driver of Delivery Vehicle to Deliver Invoice. No sale or delivery of petroleum products shall be made from a tank, wagon, motor vehicle or delivery truck unless the driver in charge of the vehicle shall deliver to the person receiving such product an invoice that: (1) Shows the number of gallons of the product; (2) Has plainly written or stamped thereon the words “guaranteed legal standard”; and (3) States that the inspection fee payable with respect to such petroleum product has been paid. (Acts 1971, No. 1403, p. 2363, §10; Acts 1971, 3rd Ex. Sess., No. 339, p. 4643, §4.)

Ala. Code § 8-17-91 Disposition of Funds; Overpayments.

8-17-91. Disposition of Funds; Overpayments. (a) The proceeds from the permit fees, inspection fees, and penalties, if any, collected by the Commissioner of Agriculture and Industries and the Revenue Commissioner pursuant to Section 8-17-87 together with one-third of the proceeds of the six cent ($.06) additional motor fuel excise tax levied on gasoline under subdivision (1) of subsection (a) of Section 40-17-325, shall be paid into the State Treasury and distributed by the State Treasurer as follows: (1) An amount equal to five percent or no less than $175,000, whichever is greater, of the combined proceeds received each month shall accrue to the credit of, and be deposited in, the Agricultural Fund; and (2) The balance of the proceeds shall be distributed as follows: a. 13.87 percent of the balance of the proceeds shall be distributed equally among each of the 67 counties of the state monthly. The county shall deposit the proceeds into the county’s special RRR Fund as provided for in Section 40-17-362, and may use the proceeds so deposited for any purpose authorized under that section. b. $408,981 shall be allocated to the State Department of Transportation monthly and deposited in the State Treasury to the credit of the Public Road and Bridge Fund. Such funds are hereby appropriated to the State Department of Transportation to be used to match federal aid discretionary funds that may from time to time become available to the State Department of Transportation. In the event that in any fiscal year other State Department of Transportation funds are insufficient to match the department’s regular federal aid apportionment, then at the Director of the State Department of Transportation’s recommendation, and approval by the Governor, funds appropriated under this subsection may be used to match the federal aid apportionment. c. 2.76 percent of the balance of the proceeds shall be allocated among the incorporated municipalities of the state as follows: 1. A portion of the municipalities’ share of the balance of the proceeds that is equal to 45.45 percent of the municipalities’ share of the balance of the proceeds shall be allocated equally among the 67 counties of the state. 2. The entire residue of the municipalities’ share of the balance of the proceeds being an amount equal to 54.55 percent of the municipalities’ share of the balance of the proceeds shall be allocated among the 67 counties of the state on the basis of the ratio of the population of each such county to the total population of the state according to the then next preceding federal decennial census, or any special federal census heretofore held in any county subsequent to the effective date of the 1980 federal decennial census. 3. The amount so allocated or apportioned to each county shall be distributed among the municipalities in the county with respect to which the allocation or apportionment is made, each such distribution among the municipalities to be on the basis of the ratio of the population of each such municipality to the total population of all municipalities in the applicable county according to the then next preceding federal decennial census. 4. The population of any municipality incorporated subsequent to the taking of the then next preceding federal decennial census shall be deemed to be the population shown by the census for that municipality taken pursuant to the requirements of Section 11-41-4. Any municipality incorporated after September 1983, shall not participate in the distribution provided for in this section until the fiscal year next succeeding the fiscal year during which it is incorporated, the first distribution to such municipality to be made in respect of receipts of the inspection fee by the state during October of the fiscal year next succeeding the incorporation. 5. Use of the inspection fee by a municipality shall be for transportation planning, the construction, reconstruction, maintenance, widening, alteration, and improvement of public roads, bridges, streets, and other public ways, including payment of the principal of and interest on any securities at any time issued by the municipality pursuant to law for the payment of which any part of the net tax proceeds were or may be lawfully pledged; provided, that no part of the balance of the proceeds referred to in this section shall be expended contrary to the provisions of the Constitution; and provided further, that funds distributed to municipalities under the provisions of this division shall not be commingled with other funds of the municipality, except the municipalities’ portion of the highway gasoline tax, and shall be kept and disbursed by such municipality from a special fund only for the purposes hereinabove provided. d. An additional five percent of the balance each month computed after deducting the distributions in paragraphs a. and c. shall accrue to the credit of, and be deposited in, the Agricultural Fund. e. In addition to any and all other funds heretofore or hereafter appropriated, for the fiscal year beginning October 1, 2015, there is appropriated to the Department of Revenue as a first charge against the fees collected pursuant to this article, the sum of five hundred thousand dollars ($500,000) to offset the Revenue Department’s costs to implement and administer this article. Beginning October 1, 2016, and every year thereafter an amount equal to two and one-half percent of the balance of the proceeds received each month after deducting the distributions in paragraphs a., b., c., and d. or no less than eighty-seven thousand five hundred dollars ($87,500), whichever is greater, is appropriated and shall accrue to the credit of, and be deposited to, the Department of Revenue to offset its costs of collection. f. The balance of the proceeds after a., b., c., d., and e. above have been distributed monthly shall accrue to the credit of and be deposited in the Public Road and Bridge Fund. (b) In the event of the collection hereunder from any person of an amount in excess of the amount of all inspection fees, interest, or penalties properly and lawfully required to be paid by such person, such person may apply to the Revenue Commissioner in the case of the inspection fees, interest, and penalties paid to the Revenue Commissioner. In the case of overpayment of the permit fees or penalties paid to the Commissioner of Agriculture and Industries, the person may apply to the Commissioner of Agriculture and Industries for a refund of the amount of such overpayment. If such application for refund is approved in whole or in part by the commissioner, the commissioner shall submit to the state Comptroller a statement, approved by the state Attorney General, setting forth the amount determined to have been overpaid and the date of the overpayment. If an application for refund submitted to the Revenue Commissioner is approved in whole or in part by the Revenue Commissioner, he or she shall submit to the state Comptroller a statement, setting forth the amount determined to have been overpaid and the date of the overpayment. In each case, the state Comptroller shall then draw his or her warrant in favor of the person making such overpayment upon the State Treasurer for the amount specified in the statement, and such amount shall be paid out of current months’ collections before any distribution is made under subsection (a) of this section. (c) The application for refund of the permit fees provided for in this article shall be filed with the Commissioner of Agriculture and Industries within 12 calendar months from the date upon which the overpayment was made, and no amount shall be refunded unless the application therefor is filed within the time prescribed herein. For any period prior to October 1, 2016, the application for refund of the inspection fee provided for in this article shall be filed with the Revenue Commissioner within 12 calendar months from the date upon which the overpayment was made, and no amount shall be refunded unless the application therefor is filed within the time prescribed herein. For the period beginning October 1, 2016, the application for refund of the inspection fee provided for in this article must be filed with the Revenue Commissioner within the time limits provided by the Taxpayer Bill of Rights in Chapter 2A of Title 40. No amount shall be approved for refund by the Revenue Commissioner unless the application therefor is filed within the time prescribed therein. (d) The Department of Agriculture and Industries or the Department of Revenue shall have authority to make and issue rules and regulations relating to the procedure to be followed in filing an application for a refund and for payment of any refund made under this article. (e) In the event of the collection from any person by the Revenue Commissioner of an amount in excess of the amount lawfully required for the six cent ($.06) additional motor fuel excise tax levied on gasoline under subdivision (1) of subsection (a) of Section 40-17-325, when one-third of the amounts so collected have been deposited in the State Treasury and distributed as provided herein, any refund properly approved by the Revenue Commissioner shall be paid out of current months’ collections before any distribution of the current months’ collections is made under subsection (a) of this section. (Acts 1971, No. 1403, p. 2363, §11; Acts 1979, No. 79-307, p. 460, §1; Acts 1984, No. 84-185, p. 279, §2; Acts 1986, Ex. Sess., No. 86-716, p. 132, §1; Act 2004-516, p. 996, §1; Act 2004-546, p. 1164, §1; Act 2012-400, p. 1092, §1; Act 2015-54, §1.)

Ala. Code § 8-17-92 Injunctive Relief.

8-17-92. Injunctive Relief. (a) In addition to penalty and other enforcement provisions of this division and notwithstanding the existence of another adequate remedy, the circuit court shall have jurisdiction for cause shown to grant a temporary restraining order or permanent injunction, or both, restraining and enjoining any person from violation or continuing to violate any requirements of this division declared to be unlawful. (b) Any such person may also be restrained or enjoined from selling, offering for sale, storing, or using any petroleum product without having a permit as required by Section 8-17-96, from selling, distributing, offering for sale, storing, or using in this state any petroleum product upon which the inspection fee imposed by Section 8-17-87 is not paid or from otherwise violating any of the provisions and requirements of this chapter. (c) Such injunction or restraining order shall be issued without bond. (d) Any action commenced under this section shall be brought in the name of the State of Alabama upon the relation of the Attorney General. (Acts 1971, No. 1403, p. 2363, §12; Acts 1971, 3rd Ex. Sess., No. 339, p. 4643, §5; Act 2015-54, §1.)

Ala. Code § 8-17-93 Penalty for Violation; Revocation of Permits.

8-17-93. Penalty for Violation; Revocation of Permits. (a) Any person who sells, offers for sale, stores, or uses any petroleum product in the state which is below the legal standard, who makes a false statement or certificate as to the quantity or standard of such petroleum product, sells, offers for sale, stores, or uses any petroleum product without having procured a permit as required by Section 8-17-85, fails to make any report to the Revenue Commissioner as required by this article, makes a false certificate of the number of gallons of such petroleum product sold, stored, or used during the preceding month or who otherwise violates or fails to comply with the provisions of this article shall be guilty of a misdemeanor. (b) The Commissioner of Agriculture and Industries may revoke the permit, referenced in Section 8-17-85, of any person found upon investigation to have sold, offered for sale, stored, or used any petroleum product below the minimum standards adopted by the Board of Agriculture and Industries pursuant to the provisions of this article or when the Revenue Commissioner has notified the Commissioner of Agriculture and Industries that the taxpayer has failed or refused, subject to the appeal provisions of Chapter 2A of Title 40, to file the delinquent tax return or to pay the inspection fee required by this article. (c) The holder of any permit, referenced in Section 8-17-85, that may be revoked pursuant to the provisions of this section shall have the right, upon request of such holder, to a hearing before the Commissioner of Agriculture and Industries, at which such holder may appear personally or by legal representative, and he or she may appeal from the decision of the commissioner by filing in the Circuit Court of Montgomery County a petition for an injunction against the commissioner. In the event such an injunction is sought, sufficient bond shall be filed with the court and conditioned as the law now provides relative to injunction bonds. The findings of the commissioner shall be presumed to be correct. (Acts 1971, No. 1403, p. 2363, §12; Acts 1971, 3rd Ex. Sess., No. 339, p. 4643, §5; Act 2015-54, §1.)

Ala. Code § 8-17-94 Division Not Applicable to Certain Shipments.

8-17-94. Division Not Applicable to Certain Shipments. The provisions of this division shall not be construed to be applicable to petroleum products unloaded in any port of the state for shipment from such port into any other state or to any shipments of petroleum products through the state from any other state to a destination point outside the state. (Acts 1971, No. 1403, p. 2363, §13.)

Ala. Code § 8-17-95 (Effective October 1, 2016) Floor-Stocks Inspection Fee.

8-17-95. (Effective October 1, 2016) Floor-Stocks Inspection Fee. (a) There is hereby imposed a floor-stocks inspection fee on gasoline held in inventory outside of the bulk transfer/terminal system, as defined in Section 40-17-322, but not at the retail level, on October 1, 2016, if: (1) No inspection fee was imposed on the gasoline under Section 8-17-87, as of September 30, 2016; and (2) The inspection fee would have been imposed on the gasoline by this article had it been in effect for the periods prior to October 1, 2016. (b) The rate of the inspection fee imposed by this section shall be the amount of the fee imposed under Section 8-17-87, on September 30, 2016. (c) Any person owning gasoline on October 1, 2016, to which the inspection fee imposed by this section applies, shall be liable for the inspection fee. The inspection fee imposed by this section shall be paid on or before December 31, 2016, and shall be paid in the manner prescribed by the Department of Revenue. (Act 2015-54, §3.)

Ala. Code § 8-17-96 Inspection Fee Permit; Liability of Surety.

8-17-96. Inspection Fee Permit; Liability of Surety. (a) The supplier or permissive supplier of gasoline or undyed diesel fuel sold to a licensed exempt entity other than the federal government at the rack, or the supplier or permissive supplier selling dyed diesel fuel or dyed kerosene at the rack at an out-of-state terminal to an importer for delivery into Alabama that does not have a valid inspection fee permit issued by the Alabama Department of Revenue, or the person first selling, the person importing, or the person who makes application to become an inspection fee permit holder of dyed diesel fuel, dyed kerosene, or lubricating oil in this state shall submit an application for an inspection fee permit to the department, which shall be approved by the department. Upon approval of the inspection fee application, the department shall issue to the applicant an inspection fee permit. This permit is not transferable and remains in effect until surrendered or canceled. (b) The surety will remain liable for any liability that has accrued or will accrue prior to May 16, 2017. (Act 2015-54, p. 198, §3; Act 2017-296, §1.)

Ala. Code § 8-17-97 Collection and Payment of Inspection Fee; Filing Requirements; Rulemaking Authority.

8-17-97. Collection and Payment of Inspection Fee; Filing Requirements; Rulemaking Authority. (a) It shall be the duty of the person first selling dyed diesel fuel, dyed kerosene, or lubricating oil in this state or importing dyed diesel fuel, dyed kerosene, or lubricating oil into the state, on which an inspection fee is due to collect and pay such inspection fee to the Department of Revenue each month in respect of all dyed diesel fuel, dyed kerosene, or lubricating oil sold or imported in the state during the preceding month unless the purchaser is an inspection fee permit holder. (b) It shall be the duty of the supplier or permissive supplier to collect and pay the inspection fee to the Department of Revenue each month in respect of all dyed diesel fuel or dyed kerosene destined for Alabama that is sold to an importer that does not have a valid inspection fee permit issued by the Alabama Department of Revenue. (c) It shall be the duty of the supplier or permissive supplier to collect the inspection fee imposed by this article from the licensed exempt entity unless the licensed exempt entity is an entity of the federal government on sales at the terminal rack and remit payment each month in respect of all gasoline or undyed diesel fuel sold in the state during the preceding month to licensed exempt entities other than the federal government. (d) Each supplier, permissive supplier, importer, first seller, or inspection fee permit holder shall file the monthly returns and monthly remittance, in a format prescribed by the Revenue Commissioner, on or before the 20th day of each calendar month for the preceding month with the Department of Revenue. The taxpayer is required to file an electronic report through the Department of Revenue’s electronic filing system. (e) The inspection fee provided for in this section shall be paid but once with respect to the same product; but in the event any person fails to make the required electronic report or payment as herein provided on or before the date such payment is due, the Revenue Commissioner shall add to the inspection fee already due interest as prescribed in Section 40-1-44 and any applicable penalties as prescribed in Chapter 2A of Title 40. The Revenue Commissioner shall then proceed to collect the inspection fee, together with the interest and penalties, in accordance with the provisions of Title 40. (f) The inspection fee, interest, and any penalties added thereto shall constitute and operate as a lien at all times until paid upon any petroleum products sold, offered for sale, stored, or used in the state by the person liable for the fee, and shall be immediately enforceable by the Revenue Commissioner in accordance with established collection procedures of the Department of Revenue. (g) The Revenue Commissioner shall have authority to adopt and promulgate reasonable rules and regulations to effectuate the evident intent and purpose of this section with respect to reporting, collection, remittance, and payments of the petroleum products inspection fees imposed under this article which shall not conflict with any of the express provisions and requirements of this section. (Act 2015-54, p. 198, §3; Act 2017-296, §1.)

Ala. Code § 8-17-98 (Effective October 1, 2016) Inspection Fee of Ultimate Consumers Having Submitted Refund Petition.

8-17-98. (Effective October 1, 2016) Inspection Fee of Ultimate Consumers Having Submitted Refund Petition. (a) Having submitted a refund petition for the excise tax under the provisions of Section 40-17-329(h), the following ultimate consumers shall owe an inspection fee to the Department of Revenue at a reduced rate of one-fortieth of a cent ($.00025) per gallon on undyed diesel fuel. The Department of Revenue is authorized to reduce the excise tax refund by the amount of the inspection fee that is due. (1) Undyed diesel fuel used by the ultimate consumer to operate boats, yachts, ships, or other maritime vehicles, whether such boats, yachts, ships, or other maritime vehicles are used commercially or for pleasure. (2) Undyed diesel fuel used by the ultimate consumer to propel or operate tractors which are not operated on public highways but which are used exclusively in preparing and cultivating land, harvesting any agricultural commodity, or for other agricultural purposes, including pasture and hay production; provided, however, that the term tractors as used herein shall not include automobiles, trucks, pickups, trailers, semitrailers, or other such vehicles. (3) Undyed diesel fuel used to propel railroad locomotives. (4) Undyed diesel fuel used by the ultimate consumer as a solvent or other agent in the treatment or preservation of wood products. (b) Having submitted a refund petition for the excise tax under the provisions of Section 40-17-329(h) on undyed diesel fuel used by the ultimate consumer in firing steam boilers or combustion generating turbines by compression, the ultimate consumer shall be exempt from the inspection fee on undyed diesel fuel used in firing steam boilers or combustion generating turbines by compression. (c) If a refund is issued by the Department of Revenue for excise taxes levied under Section 40-17-325(1) on gasoline or Section 40-17-325(2) on undyed diesel fuel for sales to the United States government or any agency thereof, the inspection fee levied under this article shall not be due. (d) If a refund is issued by the Department of Revenue for excise taxes levied under Section 40-17-325(1) on gasoline or Section 40-17-325(2) on undyed diesel exported out of Alabama, the inspection fee levied under this article shall not be due. (Act 2015-54, §3.)

Ala. Code § 8-17-99 Deduction on Monthly Returns.

8-17-99. Deduction on Monthly Returns. (a) The person first selling, the person importing, or the inspection fee permit holder of dyed diesel fuel or dyed kerosene may take a deduction on the monthly return for sales of dyed diesel fuel or dyed kerosene to the following: (1) United States Government. (2) Exports by the inspection fee permit holder. (3) Sales from one Alabama inspection fee permit holder to another Alabama inspection fee permit holder. (4) Sales to the ultimate consumer for use in firing steam boilers or combustion generating turbines by compression. (b) The person first selling, the person importing, or the inspection fee permit holder of lubricating oil may take a deduction on the monthly return for sales of lubricating oil to the following: (1) United States Government. (2) Exports by the inspection fee permit holder. (3) Sales from one Alabama inspection fee permit holder to another Alabama inspection fee permit holder. (Act 2015-54, p. 198, §3; Act 2017-296, §1.)

Ala. Code § 8-17-100 (Effective October 1, 2016) Refusal of Inspection Fee Permit; Appeals.

8-17-100. (Effective October 1, 2016) Refusal of Inspection Fee Permit; Appeals. (a) The Department of Revenue may refuse to issue an inspection fee permit under this article if the applicant or any principal of the applicant has done any of the following: (1) Had a motor fuel license or registration issued by this state or another state canceled for cause. (2) Been convicted of any offense involving fraud or misrepresentation. (3) Been convicted of any other offense that indicates that the applicant may not comply with this article if issued an inspection fee permit. (b) The Department of Revenue may also refuse to issue an inspection fee permit if the applicant is in arrears to the state for any taxes or fees or for other good cause shown. (c) Any refusal by the Department of Revenue under this section to issue an inspection fee permit may be appealed under the provisions of Chapter 2A of Title 40. (Act 2015-54, §3.)

Ala. Code § 8-17-101 Cancellation of Inspection Fee Permit.

8-17-101. Cancellation of Inspection Fee Permit. (a) In accordance with the provisions of Chapter 2A of Title 40, the Department of Revenue may cancel the inspection fee permit required under Section 8-17-96, upon written notice sent to the permit holder’s last known address, as it appears in the Department of Revenue’s files, for any of the following reasons: (1) Filing by the permit holder of a false report of the data or information required by this article. (2) Failure, refusal, or neglect of the permit holder to file a report or to provide any information required by this article. (3) Failure of the permit holder to pay the full amount of all excise taxes and inspection fees due or to pay any penalties or interest due. (4) Failure of the permit holder to keep accurate records of the quantities of petroleum products received, produced, refined, manufactured, compounded, sold, imported, or used in Alabama. (5) Conviction of the permit holder or a principal of the permit holder for any act prohibited under this article. (6) Failure, refusal, or neglect of a permit holder to comply with any other provision of this article or any rule promulgated pursuant to this article. (7) Having a motor fuel license or registration issued by this state or another state canceled for cause. (8) For any change in the ownership or control of the business. (b) Upon cancellation of any permit for any cause listed above, the inspection fee levied under this article becomes due and payable on all untaxed petroleum products held in storage or otherwise in the possession of the permit holder and all petroleum products sold, delivered, imported, or used prior to the cancellation on which the fee has not been paid. (c) The permit can be canceled upon the written request of the permit holder. (Act 2015-54, p. 198, §3; Act 2017-296, §1.)

Ala. Code § 8-17-102 Filing of Returns.

8-17-102. Filing of Returns. Every return required to be filed under this article shall be on forms and by means prescribed by the Revenue Commissioner and furnished by the Department of Revenue and shall contain any information the Department of Revenue considers necessary for the enforcement of this article. (Act 2015-54, §3.)

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