HB539 Alabama 2016 Session

Updated Feb 26, 2026

High Interest

Summary

Primary Sponsor: Donnie ChesteenSenator
Republican
Session: Regular Session 2016
Title: Geneva Co., co. commission, excise tax on motor fuel, const. amend.
Summary: HB539 would allow Geneva County to levy up to 5 cents per gallon in a motor fuel excise tax for road and bridge work, with proceeds split between the county and its cities for transportation projects.
What This Bill Does
The bill proposes a local constitutional amendment to authorize the Geneva County Commission to impose a road and bridge maintenance and construction excise fee on motor fuels sold, stored, or withdrawn in the county, at a rate up to 5 cents per gallon. Net proceeds would be placed in a special local transportation safety fund: 2 cents per gallon would go to incorporated cities within the county and the remaining funds would go to the county for road and bridge maintenance and construction. The fee would be collected similarly to the state motor fuel tax, with the county able to contract collection to the Department of Revenue or handle it itself, and records would be audited by the state’s public accounting office. The measure includes exemptions for fuels used by government functions, and, if a statewide motor fuel tax is enacted within four years, the local rate would drop to 2 cents per gallon with the same distribution structure.

Who It Affects
Businesses and individuals who sell, distribute, store, or withdraw motor fuels within Geneva County would be subject to the new excise fee (up to 5 cents per gallon).
Incorporated cities and towns within Geneva County would receive a share of the revenue (2 cents per gallon) for transportation-related purposes.
Geneva County government would collect and manage the funds and use them for road and bridge maintenance and construction, with annual audits.
The Alabama Department of Revenue may administer or assist in collection if the county chooses to contract, under the same rules as the state tax.
Fuels used in governmental functions would be exempt from the fee.
If a statewide motor fuel tax is enacted within four years, the local rate would be reduced to 2 cents per gallon and distributions would be adjusted accordingly.

Key Provisions
Authorizes the Geneva County Commission to levy a road and bridge maintenance and construction excise fee on motor fuels within the county at up to five cents per gallon.
Net proceeds are placed into a special local transportation safety fund; 2 cents per gallon goes to incorporated cities within the county, and the remainder stays with the county for road/bridge projects.
The fee is collected like the state motor fuel tax and may be administered by the Department of Revenue or the county, with rules aligned to state tax procedures.
Fuels used in governmental functions are exempt from the fee.
The county may contract for administration/collection and would have the same rights as the Department of Revenue if collecting itself, including applicable procedures and rules.
All records are audited by the Office of Examiners of Public Accounts.
The new revenue cannot reduce existing funding for road and bridge maintenance and construction.
If a statewide motor fuel excise tax is enacted within four years, the rate is lowered to 2 cents per gallon and distributions follow the established split.
Post-ratification, no incorporated city or town in Geneva County may levy or collect a liquid motor fuel excise tax on selling, delivering, storing, or keeping motor fuels (except ordinary business licenses).
Election to approve the amendment would be held at the next general election with voter description provided on the ballot.

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