AL HB235

Amends Section 40-17-328 of the Code of Alabama 1975 to expand motor fuel tax liability to include dyed diesel fuel used in highway vehicles (excluding city and county vehicles).

Extends tax to motor fuel used on highways after a refund application is denied, and to aviation gasoline or jet fuel used for non-aircraft purposes at standard motor fuel tax rates.

Makes highway vehicle operators liable for taxes on untaxed or refunded motor fuel used for taxable purposes, with joint and several liability for motor carriers and vendors who knew the fuel would be used taxably.

Licensed aviation fuel dealers are liable for taxes owed on aviation gasoline or jet fuel not used in aircraft.

Becomes effective October 1, 2016, following passage and gubernatorial approval.