Category: Alabama Legislature

Cities, counties disagree on how to share possible gas tax increase

Alabama county and municipal leaders will push the Alabama Legislature this year to approve a statewide gasoline tax increase to fund road improvements, but they disagree about how any new money should be split among local governments.

The distribution of funds is one of several possible sticking points for the gas tax legislation that is expected to be a major issue of the 2019 legislative session.

While many lawmakers recognize the need for the first gas-tax increase since 1992, some also want more “skin in the game” from the majority of counties that haven’t enacted their own gas taxes to fund their local road needs.

Meanwhile, there is the issue of the transfer of existing money from the gas tax to other state agencies. More than $63 million of existing money from the tax is pulled from the Alabama Department of Transportation each year and transferred to other agencies.
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