Gas tax increase clears committee, headed for vote in House
Published 4:27 pm Thursday, March 7, 2019
On Thursday, the Alabama House Committee on Transportation, Utilities and Infrastructure greenlighted Alabama Gov. Kay Ivey’s proposed gas tax increase and related legislation, clearing the way for it go before the full House by the end of the week.
Ivey’s legislation, which will use the revenue from a 10-cent increase in gas taxes to repair aging infrastructure across the state, will also impose additional penalties on drivers who use electric or hybrid vehicles, similar to the state’s taxation of solar panels for home electricity.
Alabama’s gas tax hasn’t been increased since 1992 but legislators continue to be divided over the issue.
According to a spreadsheet distributed to committee members and the press, Selma will see its share of gas tax revenues increase by more than $150,000 over its 2017 earnings.
In 2017, Selma collected $202,810 in fuel tax revenue – if the new legislation is passed, Selma will see its share jump to $357,422.
Orrville will collect $17,483 annually and Valley Grande will collect $80,602 each year.
The committee also approved another piece of the gas tax package, a bill from Alabama Rep. Clyde Chambliss, R-Prattville, which will put in place new oversight of the Alabama Department of Transportation (ALDOT).
The bill requires that ALDOT make its long-range plan of infrastructure projects, known as the Statewide Transportation Improvement Program (STIP), available on the department’s website and reorganizes the Joint Transportation Committee to review those plans.
“This bill dramatically increases oversight and accountability for the Department of Transportation,” Chambliss said. “Gov. Ivey has put forward her Rebuild Alabama plan for modernizing Alabama’s infrastructure and I support her proposal. At the same time, the legislature is tasked with making sure tax dollars are being spent in a transparent, efficient and accountable manner.”
If the bill clears the Alabama House of Representatives, it will be sent to the Senate and then delegated to another committee.
Once it clears the Senate committee and then the full chamber, it will go to Ivey’s desk to be signed into law.