SB133 Summary

• Transfers petroleum products inspection fee collection and administration duties from the Alabama Department of Agriculture and Industries to the Department of Revenue effective October 1, 2016.

• Increases gasoline excise tax from 16 cents to 18 cents per gallon and diesel fuel excise tax from 13 cents to 19 cents per gallon, comprising a new 6-cent additional tax on both fuels.

• Imposes inspection fees on petroleum products including dyed diesel fuel ($.02 per gallon), dyed kerosene ($.01 per gallon), and lubricating oil ($.15 per gallon), with reduced rates for agricultural, maritime, and railroad uses.

• Allocates one-third of the additional 6-cent gasoline tax revenue to the Department of Revenue to offset administration costs and two-thirds to the Department of Transportation and counties/municipalities for road and bridge purposes.

• Establishes inspection fee permit requirements and bonding obligations for suppliers, importers, and distributors of petroleum products, with specific provisions for fuel quality standards and compliance procedures.