Deadline Nears for Farmer State Gas Tax Refund

Finances are tight for farmers across the country, and with growing operating costs, they are trying to find every break possible.

Now, the state of Alabama is trying to help, but time is running out.

The Alabama department of revenue is offering a tax refund for farmers who used clear or on road, motor fuel in tractors or auxiliary equipment last year. This type of fuel has roughly an 11-cent tax, that dyed or off-road diesel fuel most farmers use does not.

The deadline is quickly approaching. You must file the refund by Thursday, March 31.

"The farmer must have his receipt from where the vendor was when you purchased this on-road diesel, and the date, and the type of fuel, the amount of gallons, and it must be legible," says Extension Specialist, William Birdsong.

There is also a form to fill out, that the Department of Revenue can email to you.

Since that's a lot of information to gather in such a short period of time, Birdsong has a suggestion.

"Go ahead and circle your calendar starting the first of January, or make a note to start collecting these receipts from here to next March 31st when that farmer might be able to take advantage of this refund.”

This tax refund has been in existence since 1957, but many farmers are unaware of it.

While the clear fuel isn't commonly used on the farm, when it is, it's important for farmers to keep track of so they can be reimbursed.

"Farmers consume an enormous amount of input, and diesel fuel is just one of those inputs. In order to get 11-cent a gallon on something that they might use thousands of gallons every year, certainly amounts up to a value to them,” says Birdsong.

For the form, call the Department of Revenue at (334)242-9608.

It must be postmarked by Thursday, March 31.

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