HB562 Summary

• Transfers collection of petroleum product inspection fees from the Alabama Department of Agriculture and Industries to the Alabama Department of Revenue, effective October 1, 2015.

• Establishes separate inspection fee structures: gasoline fees collected via terminal excise tax returns; dyed diesel fuel, dyed kerosene, and lubricating oil collected through separate monthly returns to the Department of Revenue.

• Creates bonded distributor permit system for dyed diesel fuel, dyed kerosene, and lubricating oil sellers, requiring $5,000 bond and monthly reporting to Department of Revenue.

• Allocates collected inspection fees with Department of Revenue retaining up to $500,000 in fiscal year 2014 and 2.5% of balance thereafter for administrative costs, with remaining proceeds distributed to counties, municipalities, and Agricultural Fund per existing formulas.

• Increases gasoline excise tax from 16 cents to 18 cents per gallon (adding 2 cents) and clarifies inspection fee exemptions for exports, government purchases, and specific end uses; provisions effective October 1, 2015.