Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-8-1 - MOTOR FUEL REGULATIONS › Section 810-8-1-.25.02 - Permit Issued To Pay Lubricating Oil Tax Directly To The Department

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Any person,
			 distributor, storer, retail dealer, user, or user who sells to others, unable
			 to determine at the time of purchase, transport, delivery, storage, or sale of
			 lubricating oil the applicability of the additional excise tax levied in §
								40-17-220 may apply for a lubricating oil permit. This lubricating oil permit will allow
			 the holder to purchase lubricating oil free of all lubricating oil excise tax
			 and pay such taxes directly to the department.
(2) Application for a lubricating oil permit
			 will be made upon forms prepared by the department. Upon receipt and approval
			 of the application by the department, a numbered permit will be issued to the
			 applicant.
(3) The lubricating oil
			 permit holder may purchase all lubricating oil products tax free and is not
			 required to remit to the seller the excise tax levied in §
								40-17-171 or the additional excise tax levied in §
								40-17-220.
			 The lubricating oil permit holder must furnish to each vendor from whom
			 lubricating oil is purchased the assigned permit number.
(4) The lubricating oil permit holder is
			 required to file a lubricating oil excise tax return for each month on a form
			 prescribed by the department. A return must be filed even if no lubricating oil
			 is purchased, distributed, sold, used, or if no tax is due. The return and
			 payment of any tax shown as due must be filed and remitted to the department on
			 or before the twentieth (20th) day of each calendar month for the preceding
			 calendar month in which the tax accrues.
(5) Tax is deemed to have been collected at
			 the time of the sale irrespective of when payment for the amount of the invoice
			 including the tax is received by the lubricating oil permit holder. Failure to
			 collect the tax from the purchaser does not relieve the lubricating oil permit
			 holder from this liability to pay the department the amount of the tax to be
			 collected.
(6) The lubricating oil
			 permit holder must keep records to substantiate any item appearing on the
			 monthly lubricating oil tax return. Records must be maintained in a form
			 satisfactory to the department and made available for inspection or audit by
			 the department. Records must be retained by the lubricating oil permit holder
			 for a period not less than three years.
(7) The lubricating oil permit holder
			 conducting business at different locations requires only one permit, if monthly
			 lubricating tax returns are prepared at one central location.
(8) A lubricating oil permit holder claiming
			 sales or use of lubricating oil exempt from the additional excise tax as
			 enumerated in §
								40-17-220(c),
			 (1) through (8)   must exercise reasonable care
			 to assure that the lubricating oil is used for the exempt purpose. Each exempt
			 sale of lubricating oil must be supported by a copy of the original invoice
			 showing invoice number, date, number of gallons, and the correct name and
			 address of the purchaser. A user of lubricating oil must keep records
			 substantiating the exempt use.
(9)
			 The lubricating oil permit is a personal privilege and is not transferable. The
			 permit may be canceled by the department upon notice to the holder thereof in
			 accordance with the provisions of §
								40-2A-8.
(10) Vendors of lubricating oil must maintain
			 a file of lubricating oil permit holders' names and numbers to substantiate tax
			 free sales of lubricating oil permit holders. Vendors selling tax free
			 lubricating oil to non-lubricating oil permit holders could incur liability for
			 the tax due.
(11) Violations of
			 these regulations carry the same penalties as are prescribed for violations of
			 the law itself.
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The December 14, 1987, amendment was not published. The
				  amendment only involved a division name
				  change.
Author:
Bonita Calhoun
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2-11,
				  40-17-18,
				  40-17-152,
				  40-17-221.