Alabama changes inspection fee and the excise tax

Starting October 1, 2016, the agricultural inspection fee of $.02 per gallon will be added to the gasoline excise tax and the administration of the inspection fee for dyed kerosene, dyed diesel fuel, and lubricating oil will be transferred to the DOR.  The first inspection fee return, which will include dyed diesel fuel, dyed kerosene,  and lubricating oil, will be filed with the Alabama DOR for October 2016 which will be due no later than Nov 21, 2016.  The inspection fee return must be filed electronically through My Alabama Taxes (MAT).

Note, you must obtain an inspection fee permit if you are the first seller of dyed diesel, dyed kerosene, or lubricating oil in Alabama or if you are importing dyed kerosene, dyed diesel, or lubricating oil into Alabama.  An inspection fee permit is also required for suppliers or permissive suppliers that sell undyed diesel fuel or gasoline directly to a licensed exempt entity other than the federal government or that sell dyed kerosene or dyed diesel to an importer that does not have a valid inspection fee permit.

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