Alabama: Fuel Excise Taxes
Alabama Cigarette and Fuel Excise Taxes
In addition to (or instead of) traditional sales taxes, gasoline and other Fuel products are subject to excise taxes on both the Alabama and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Alabama Gasoline Tax
| Excise: | $0.16 / gallon |
|---|---|
| Addl. Tax: | $0.02 / gallon† |
| Total Tax: | $0.18 / gallon |
Alabama Diesel Tax
| Excise: | $0.19 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.19 / gallon |
Alabama Gasohol Tax
| Excise: | $0.16 / gallon |
|---|---|
| Addl. Tax: | $0.02 / gallon† |
| Total Tax: | $0.18 / gallon |
† Additional Applicable Taxes: Inspection fee
Other Alabama Fuel Excise Tax Rates
The primary excise taxes on fuel in Alabama are on gasoline, though most states also tax other types of fuel.
Alabama Aviation Fuel Tax
In Alabama, Aviation Fuel is subject to a state excise tax of $.095 per gallon (Effective October 1, 2012)
Point of Taxation: Terminal (October 1, 2012)
Alabama Jet Fuel Tax
In Alabama, Jet Fuel is subject to a state excise tax of $.035 per gallon (Effective October 1, 2012)
Point of Taxation: Terminal (October 1, 2012)
Payment of Alabama Fuel Excise Taxes
Payments of fuel excise taxes are made by fuel vendors, not by end consumers, though the taxes will be passed on in the fuel's retail price. Fuel tax is due the 22nd of each month as well as reports and payments from those involved in buying, selling and transporting fuel. Lubricating oil tax for returns and payments is due on the 20th of each month.
Alabama Fuel Tax Reports
Fuel producers and vendors in Alabama have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Alabama government. Click the button below to view details on six AL fuel tax reports.
View Fuel Tax ReportsStorage Tank Trust Fund Charge
Report Due: Due on or before the 20th day of the month following the month of activity
Report Penalties: The greater of 10% of the tax due or $50.00
Payment Due: Due on or before the 20th day of the month following the month of activity
ReportPenalties: The greater of 10% of the tax due or $50.00
PaymentPenalties: 10% of the tax due
Terminal Excise Tax Returns (Supplier, Permissive Supplier, Importer, Exporter, & Blender)
Report Due: Due on or before the 22 nd day of the month following the month of activity
Report Penalties: The greater of 10% of the tax due or $50.00
Payment Due: Due on or before the 22 nd day of the month following the month of activity. Importers importing motor fuel acquired at an out-of- state terminal from a supplier who has not pre- collected the Alabama
ReportPenalties: The greater of 10% of the tax due or $50.00
PaymentPenalties: 10% of the tax due
Terminal Operator - Annual Return
Report Due: Due on or before January 31 for the prior calendar year
Report Penalties: The greater of 10% of the tax due or $50.00
Payment Due: Due on or before January 31 for the prior calendar year
ReportPenalties: The greater of 10% of the tax due or $50.00
Terminal Operator - Monthly Return
Report Due: Due by the last day of the month following the month covered by the report
Report Penalties: $50.00, no tax due
Payment Due: No payment due by terminal Operator
ReportPenalties: $50.00, no tax due
Transporter
Report Due: Due by the last day of the month following the month covered by the report
Report Penalties: $50.00, no tax due
Payment Due: No payment due by Transporters
ReportPenalties: $50.00, no tax due
Wholesale Oil/Import License Fee
Report Due: Due on or before October 14 of each calendar year for the period October 1 through September 30
Report Penalties: The greater of 10% of the tax due or $50.00
Payment Due: Due on or before October 14 of each calendar year for the period October 1 through September 30
ReportPenalties: The greater of 10% of the tax due or $50.00
PaymentPenalties: 1% per month or fraction thereof, not to exceed 25%
Federal Fuel Excise Taxes
The price of all motor fuel sold in Alabama also includes Federal motor fuel excise taxes, which are collected from the manufacturer by the IRS and are used to support the Federal Highway Administration. Federal excise tax rates on various motor fuel products are as follows:
| Gasoline | $0.18.4 per gallon |
|---|---|
| Diesel and Kerosene | $0.242 per gallon |
| Liquefied Petroleum Gas | $0.183 per gallon † |
| Liquefied Natural Gas (LNG) | $0.243 per gallon † |
| Compressed Natural Gas (CNG) | $0.184 per gallon † |
Included in the Gasoline, Diesel/Kerosene, and Compressed Natural Gas rates is a 0.1 ยข per gallon charge for the Leaking Underground Storage Tank Trust Fund (LUST).
† These tax rates are based on energy content relative to gasoline.
What percentage of the cost of gas in Alabama comes from taxes and gas station profit?
The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution / marketing, and taxes. In most areas, state and federal excise taxes amount to about 13% of the cost of a gallon of gas. Gas stations generally only profit a few cents per gallon.
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