Ala. Admin. Code r. 810-8-1-.22

Current through Register Vol. 43, No. 1, October 31, 2024

Section 810-8-1-.22 - Exemptions Pertaining To The Additional Excise Tax On Lubricating Oil

(1) The additional excise tax, as provided for in Section 40-17-220, does not apply with respect to that lubricating oil which the permit holder establishes to the satisfaction of the Department as being:

(a) Sold to the United States.

(b) Used to propel aircraft powered by reciprocating engines.

(c) Used to propel ships, vessels, barges, railroad locomotives, and other railroad equipment.

(d) Sold for agricultural purposes. The additional excise tax applies for lubricating oil used in motor vehicles traveling the highways of this state although engaged exclusively in agricultural purposes, or only incidentally operated upon a highway in moving between farms or parts of farms contiguous or in close proximity.

(e) Sold to governing bodies of counties and incorporated municipalities.

1. The governing body of a county or incorporated municipality is that body of the county or incorporated municipality which performs the legislative function and has the ultimate power to determine the policies of the county or incorporated municipality and control the activities of the county or incorporated municipality.

2. Governing bodies of counties and incorporated municipalities exempt from the additional excise tax include county commissions and city councils or city commissions or town councils.

3. Sales claimed by the permit holder as being made to a governing body of a county or incorporated municipality for highway use must be supported by invoice or other documents specifically billed to that governing body. It is further required that payments be made directly by the governing body. Any questionable sales may be substantiated or disallowed by determining whether payment for the lubricating oil is made from an account controlled solely by the governing body of the county or incorporated municipality.

(f) Used in off-road vehicles which presently do not require state licensing; specifically, but not limited to, forklifts and other like devices not for use on the streets and highways of this state.

(g) Sold to city and county boards of education.

(h) Sold to private and church school systems which essentially offers the same curriculum as offered in grades K-12 in the public schools, the Alabama Institute for Deaf and Blind, and the Department of Youth Services.

Ala. Admin. Code r. 810-8-1-.22

Amended: December 14, 1987, January 19, 1996. Amended: Filed April 29, 1996; effective June 3, 1996. Amended: Filed December 18, 2008; effective January 22, 2009. Amended: Filed June 29, 2012; effective August 3, 2012. Amended: Filed July 26, 2013; effective August 30, 2013.

The December 14, 1987, amendment was not published.

The amendment only involved correcting a division name change.

Author: Bonita Calhoun

Statutory Authority:Code of Ala. 1975, §§ 40-2-11, 40-17-18, 40-17-221(a), 40-17-221(b), and 40-17-221(c).