New Alabama law raises gas tax to improve transportation infrastructure

March 14, 2019

The Rebuild Alabama Act includes plans for an indexed 10-cent fuel tax hike

Alabama Gov. Kay Ivey this week signed into law the Rebuild Alabama Act, a key piece of infrastructure legislation that includes a fuel tax increase for the state.

According to a report from Transport Topics, Ivey signed the bill at a public ceremony March 12, shortly after it was approved by the state legislature. The governor announced her Rebuild Alabama infrastructure plan Feb. 27.

The law includes plans for an indexed 10-cent gas tax hike. The revenue created through the fuel tax boost will be split among various government agencies at local and state levels for infrastructure improvement and maintenance projects.

The current excise tax is 19 cents per gallon for diesel and 18 cents per gallon for gasoline. The revenue created from these taxes creates 80% of Alabama’s transportation funding. The law also presents new registration fees for electric and hybrid vehicles. The license and registration fee for electric vehicles is $250, while the fee for hybrid vehicles is $125.

The American Society of Civil Engineers’ (ASCE) most recent infrastructure report card in 2015 graded Alabama an overall C-. The ASCE bestowed Alabama's bridges with a C- while the state's roads were given a D+. According to transportation research from The Road Information Program, about 30% of Alabama’s roads and highways are in poor or mediocre condition due to a lack of sufficient funding.


Source: Transport Topics