HB50 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Jimmy Martin

Republican

Session

First Special Session 2016

Title

Gasoline tax, add'l tax provided for, additional fees for certain alternative fuel vehicles, Secs. 40-12-275 added; Sec. 40-17-325 am'd.

Summary

HB50 would raise gasoline and diesel taxes to align with neighboring states and create annual fees for alternative fuel vehicles, with all new revenue directed to the Alabama Transportation Safety Fund.

What This Bill Does

It adds an additional excise tax on gasoline and diesel equal to the difference between the Border States Average Gasoline Tax and Alabama's gasoline tax, capped at 6 cents per gallon, effective November 1, 2016; the base rates stay in place and the new revenue goes to the Alabama Transportation Safety Fund. It also imposes annual fees for alternative fuel vehicles: $100 per year for private passenger alt fuel vehicles and $150 per year for commercial alt fuel vehicles, starting January 1, 2017, with commercial fleet fees prorated by miles; these fees are deposited into the Transportation Safety Fund. The funds from these taxes and fees would be spent only as authorized by law.

Who It Affects

• Gasoline and diesel vehicle owners and drivers in Alabama would face higher fuel taxes (up to 6 cents more per gallon) once the new rate takes effect.
• Owners of alternative fuel vehicles (private passenger and commercial fleets) would pay new annual fees ($100 for private passenger, $150 for commercial) starting January 1, 2017; commercial fleet fees would be prorated by miles driven.

Key Provisions

• Amends Section 40-17-325 to impose an additional excise tax on gasoline and diesel equal to the difference between the Border States Average Gasoline Tax and the Alabama Tax on Gasoline, capped at six cents per gallon, effective November 1, 2016; proceeds go to the Alabama Transportation Safety Fund.
• Adds Section 40-12-275 to create annual fees for alternative fuel vehicles: $100 per year for private passenger alternative fuel vehicles and $150 per year for commercial alternative fuel vehicles, effective January 1, 2017; commercial fleet fees are prorated by miles operated in Alabama; fees go to the Alabama Transportation Safety Fund.
• Taxes and fees collected under the act would be deposited into the Alabama Transportation Safety Fund and expended only as provided by law.

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