Tag: gas tax

Governor Signs Gas Tax Into Law

The Alabama Senate passed the 10-cent a gallon gas Tax on Tuesday and Gov. Kay Ivey signed it into law the same day.

The new law will gradually raise the state’s tax on gasoline and diesel fuel by 10 cents a gallon over three years. The tax will go up by 6 cents this year, 2 cents in 2020 and 2 cents in 2021. Future increases of a penny are possible every other year after that, depending on inflation. Read more.

Gas Tax Plan Could Get Final Approval Tuesday

MONTGOMERY — Gov. Kay Ivey’s gas tax and infrastructure proposal could get to her desk Tuesday if it clears the Alabama Senate. Senate leadership said there is a growing comfort level with the bill in the 35-member chamber. The bill would gradually raise the state’s tax on gasoline and diesel fuel by 10 cents a gallon over three years, with possible penny increases every other year after that, depending on inflation. Read more.

Gas Tax Bill Means Millions for Birmingham Area

Alabama’s more than 400 cities and towns currently share about $22 million a year from the statewide gas tax. They would get an additional $26 million a year under a proposed 10-cent-a-gallon increase.

Alabama’s counties now receive a combined $176.5 million; if House Bill 2 becomes law, they would receive an additional $80 million.

“It’s enormous,” said Greg Cochran, deputy director of the Alabama League of Municipalities, about the potential impact of the gas tax. Read more.

Local Gas Tax Payouts

Under House Bill 2, the gas tax increase bill, municipalities would receive an additional $26 million a year, bringing their total to $48.7 million. Counties would receive an additional $80 million, bringing their total to $256.4 million a year.

Here’s how much area counties would receive under the gas tax increase. Click here for the list of municipalities.

Jefferson Co.: $6.53 million         St. Clair Co.: $1.32 million
Shelby Co.: $2.41 million             Walker Co.: $1.13 million

Local Gas Tax Payouts

Under House Bill 2, the gas tax increase bill, municipalities would receive an additional $26 million a year, bringing their total to $48.7 million. Counties would receive an additional $80 million, bringing their total to $256.4 million a year.

Here’s how much area counties would receive under the gas tax increase. Click here for the list of municipalities.

Jefferson County: $6.53 million             St. Clair County: $1.32 million
Shelby County: $2.41 million                 Walker County: $1.13 million

Gas Tax Headed to Senate After Passing the House

The House of Representatives approved an increase Friday in gas taxes to fund infrastructure improvements, sending the bill to the Senate.

The proposed 10-cent-a-gallon increase is expected to generate more than $300 million a year. It’s being fast-tracked in a special session Gov. Kay Ivey called to consider the issue and could be approved by early next week.

Ivey’s Release of Proposed Budgets on Hold as She Focuses Legislators on the Gas Tax

Details of Gov. Kay Ivey’s proposed 2020 General Fund and education budgets won’t be released until lawmakers dispense with her proposed gas-tax increase.

Traditionally, the budgets are made public the day after a governor’s State of the State address, which Ivey delivered Tuesday.

State law says the governor has until the second legislative day of a regular session to submit budgets to the Legislature. But that second day won’t happen for almost two weeks because the special session on the gas tax that began Wednesday has put the regular session on hold.

Daniel Sparkman, Ivey’s spokesman, said the budgets are important to the governor, but they won’t be presented until March 19, after lawmakers are finished dealing with the “task at hand.”

“During her State of the State address, Governor Ivey laid out her proposals for the 2020 budgets to the people of Alabama,” Sparkman said. “Though the budgets are important, right now the Legislature must focus on the task at hand, the Rebuild Alabama plan. This critical infrastructure legislation package is vital to improving public safety, economic development and quality of life in Alabama.” Read more.

Gas Tax Got First Vote Thursday

By Mary Sell and Caroline Beck, Alabama Daily News

The gas tax was passed by a House committee Thursday and is now heading to the full House for debate.

MONTGOMERY — The proposed 10-cent-a-gallon gas tax increase to fund infrastructure improvements is expected to get its first vote in committee Thursday morning.

A new version of Gov. Kay Ivey’s priority bill was filed Wednesday afternoon in the special session dedicated to the issue.

The tax is expected to generate more than $300 million a year. House Bill 2 increases the allocation for improvements at the Port of Mobile from the originally proposed $10.2 million a year to $11.7 million.

Some critics have raised strong objections to redirecting gas tax revenues toward the port. Expanding the port to take on greater capacity is a priority for U.S. Sen. Richard Shelby, who last year secured federal matching dollars to deepen and widen the Mobile Bay shipping channel.

Several north Alabama lawmakers said they supported sending money to the port to improve and expand it.
“I am in favor of it, because it is critical to the entire state,” said Rep. Parker Moore, R-Decatur. Read more.

Gas Tax Proposal Punishes Clean-Fuel Vehicles, Ties Alabama For Nation’s Highest Fees, Groups Say

Environmental groups are alarmed that the gas tax bill filed in the Legislature today would make owners of electric and plug-in hybrid vehicles pay more to the state than owners of gas-fueled vehicles.

A summary version of the special session bill makes it less onerous than an earlier version but still is causing concern that the EV and plug-in hybrid owners would be penalized for using technology that pollutes less or not at all, conservation advocates say. After the concessions, Alabama’s fee would be tied with Georgia for the highest in the nation.

The gas tax would fund the Gov. Kay Ivey-backed infrastructure bill, called the Rebuild Alabama Act, and is estimated to cost the average driver an additional $55 a year in gasoline tax, according to authors of the legislation. But EV owners would pay a $200 annual license and registration fee; plug-in hybrid vehicle owners would pay $100. There would be no fee for conventional hybrid vehicles.

That’s down from the original bill’s $250 for EVs and $150 for hybrids. Read more.

Ivey’s Budget Proposes Shifting Funds, Including Moving CHIP Costs to Education Fund, as Part of Plan to Improve Roads and Bridges

MONTGOMERY – Gov. Kay Ivey is proposing a redistribution of some tax revenue — including more than $30 million from the Education Trust Fund to the General Fund — to help sell her initiative to raise more revenue for building roads and bridges. Read more.

Gas Tax, Lottery, Teacher Pay Raises Are Issues to Watch in 2019 Legislative Session

MONTGOMERY – Gov. Kay Ivey’s first legislative session since winning a term in her own right will feature a laundry list of contentious issues when it begins Tuesday.

On the top of that list is Ivey’s proposal to raise the state’s gas tax to pay for improving roads and bridges, which could be one of the first votes the GOP-led Alabama Legislature will be asked to take.

Ivey’s infrastructure plan will be the predominant issue of the 15-week session. Advocates for the first statewide gas tax increase since 1992 say bad roads are dangerous, cause costly congestion and hinder economic development. But passage of the legislation is not a sure thing in the 140-member Legislature where 41 members are new this year.

Other potential high-profile bills include a proposal for a statewide lottery, a likely teacher pay raise request and continued attempts to address the state’s understaffed and aging prisons.

In a recent interview with Alabama Daily News, Ivey said she knew that confronting difficult issues was going to be necessary when she decided to run.

“When I was trying to wrestle with the idea of even making a race for governor, I had to face the fact that our state has some very difficult challenges and needs,” Ivey said.

“Because they’ve been, with the prisons and the infrastructure, neglected for years and years and decades. I knew if I was successful in running for governor, I was going to have to deal with those. And you don’t look forward to dealing with difficult things, but that was one of the soul-searching questions that I had to answer for myself. Was I willing, if I was going to run for governor, would I be willing to take on the high priority needs that the state has because of neglect by others through the years?

“And it was a hard decision for me to make because we have some heavy lifts.” Read more.