Alabama House Approves Gas Tax Increase

Gigi Douban | March 8, 2019

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The Alabama House of Representatives on Friday approved legislation to increase the state gas tax by 10 cents per gallon. The tax increase would be phased in over three years. After that, it would be adjusted to keep up with construction costs up to a penny every two years.

Under the proposal, electric and hybrid vehicle owners would pay additional annual fees — $200 on electric cars and $100 for plug-in hybrids. According to the Montgomery Advertiser, those could be adjusted depending on the presence of federal taxes.

Revenue from the tax increase would go toward rebuilding the state’s roads and bridges. Gov. Kay Ivey has pushed the infrastructure plan as an initiative that’s been long overdue. Proponents have argued the state’s deteriorating infrastructure is a hindrance to economic development. Some of those opposed want to be sure the state is spending the funds wisely.

A companion oversight bill adopted by the House requires state Department of Transportation projects to be ranked on an objective criteria, according to the Montgomery Advertiser.