Ala. Admin. Code r. 810-6-4-.15 - Permit To Pay Sales And Use Taxes On Motor Fuels Direct To The Department Of Revenue
(1)
The term "Department" as used in this regulation shall mean the Department of
Revenue of the State of Alabama.
(2) The definition of the term "motor fuel"
contained in Code of Ala. 1975, Section
40-17-1, is incorporated by
reference herein.
(3) Except as
outlined in paragraphs (4) and (10) below, in-state sellers must collect and
remit sales tax on retail sales of motor fuels which are not subject to the
motor fuels excise tax and do not qualify for a sales tax exemption; and,
out-of-state sellers, who do not have a place of business in Alabama but for
whose business sufficient nexus exists, must collect and remit seller's use tax
on retail sales of motor fuels which are not subject to the motor fuels excise
tax and do not qualify for a use tax exemption.
(4) Where the Department finds that it is
practically impossible at the time of purchase for the purchaser or the
purchaser's vendors to determine with any degree of certainty the applicability
of sales or use tax to purchases of motor fuels and where it would facilitate
and expedite the collection of the taxes to permit the purchaser to purchase
all motor fuels without payment of sales or use tax to the vendor, a user of
motor fuels may obtain a permit which will allow the holder to purchase all
motor fuels free of sales and use taxes and to report and pay the applicable
tax directly to the Department. An application for the permit shall be made on
forms furnished by the Department and shall require the following information:
(a) Applicant's Federal Employer
Identification Number,
(b)
Applicant's legal name and complete mailing address,
(c) Business address(es) in Alabama including
city, county, and street address or, if location is on a highway or rural
route, including details sufficient to allow Department personnel to find the
place of business,
(d) Indication
of the nature of business,
(e)
Business phone number,
(f) Desired
effective date of permit, and
(g)
Signature and title of sole proprietor, each partner, or an elected corporate
officer and the date of each signature.
(5) The permit holder shall be required to
pay sales or use tax directly to the Department on motor fuels purchased
without payment of sales or use tax to the vendor when the motor fuel is
subsequently used in a manner that (i) is exempt from the motor fuels excise
tax and (ii) does not qualify for a sales and use tax exemption.
(6) A permit holder, who purchases motor
fuels with motor fuels excise tax paid and subsequently uses the motor fuel in
a manner which qualifies the user for a refund of the motor fuels excise tax
pursuant to Sections
40-17-2(c) and
40-17-220(g),
shall report and pay the applicable sales or use tax to the Department, Sales
or use tax accrues at the time the motor fuel is used, provided the motor fuel
does not qualify for a sales or use tax exemption.
(7) The permit holder shall maintain books
and records which clearly disclose the total amounts of motor fuels purchased
and the use of motor fuels for taxable and nontaxable purposes.
(8) The permit referenced in paragraph (4)
above shall be restricted to purchases of motor fuels only, shall be entitled
Sales and Use Tax Motor Fuel Permit, and shall contain the following
information:
(a) Taxpayer's direct pay permit
number, legal name, and complete address,
(b) Statement of the conditions to which the
permit is subject,
(c) Effective
date of the permit,
(d) Signature
on behalf of the Department of Revenue and the date signed, and
(e) Attesting signature of the Departmental
Secretary.
(9) Permit
holders shall file returns on forms furnished by the Department and pay the
sales or use taxes due on or before the twentieth day of the month next
succeeding the tax reporting period in which the motor fuel is used in a manner
subject to sales or use tax. Motor Fuels Sales Tax Direct Pay Permit Returns
shall require the following information:
(a)
The holder's direct pay permit account number, legal name, and complete
address,
(b) Period covered by the
return and due date of the return,
(c) Estimated tax due for the current month,
if applicable,
(d) total gallons of
motor fuel used during the period covered by the return which are not subject
to the motor fuels tax,
(e) Cost of
the fuel not subject to the motor fuels tax,
(f) Sales tax due on the motor
fuel,
(g) Estimated tax paid on
previous month's return, if applicable,
(h) Tax due after deducting credit for
previous month's estimate,
(i)
Total tax due (tax shown due in item (h) plus current month's estimate, if
applicable),
(j) Penalties and
interest due, if applicable,
(k)
Credits claimed,
(l) Total amount
due,
(m) Total amount
remitted,
(n) An indication if
payment of tax is made through electronic funds transfer (EFT), and
(o) Taxpayer's signature and the date
signed.
(10) The holder
of a Sales and Use Tax Direct Pay Permit shall not be issued a separate Sales
and Use Tax Motor Fuel Permit. Instead, all purchases of motor fuels and the
payment of applicable sales or use taxes due thereon by holders of Sales and
Use Tax Direct Pay Permits shall be made in accordance with the provisions of
Sales and Use Tax Rule
810-6-4-.14 Sales and Use Tax
Direct Pay Permit.
Author: Dan DeVaughn, Asst. Chief, Sales Tax Division
Notes
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-31, 40-23-83.
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