HB661 Alabama 2012 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2012

Title

Motor fuel, state levy equivalent amount of tax should Congress fail to levy, eliminate, or reduce

Summary

If Congress stops or lowers the federal motor fuel tax, Alabama would automatically impose a state motor fuel tax equal to that amount, with the money going to the road and bridge fund; the Alabama tax would adjust if the federal tax is later restored.

What This Bill Does

The bill would trigger an automatic state motor fuel tax equal to the reduction in the federal tax when Congress does not levy, eliminates, or reduces it. The state tax revenue would be deposited into Alabama's state road and bridge fund to support transportation projects. If Congress later reauthorizes or restores the federal tax to its prior level, the Alabama levy would automatically adjust to match, as determined by the Commissioner of Revenue.

Who It Affects

• Alabama drivers and other people who buy motor fuel in the state would pay the new state tax when the federal tax is not in place, with the revenue going to the road and bridge fund.
• Alabama government agencies, including the Department of Revenue and the Commissioner of Revenue, which would collect the new tax and determine adjustments if the federal tax is restored.

Key Provisions

• Automatic state levy: If Congress fails to levy, eliminates, or reduces the federal motor fuel tax, Alabama automatically levies an equivalent state tax.
• Fund destination: The proceeds are deposited into the state road and bridge fund.
• Automatic adjustment: If Congress reauthorizes or restores the federal tax to the previous level, the state levy automatically adjusts (as determined by the Commissioner of Revenue).
• Effective date: The act becomes effective immediately after passage and governor's approval (or it becomes law by operation).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation