HB540 Alabama 2016 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2016

Title

Houston Co., co. commission, excise tax on motor fuel, const. amend.

Summary

HB540 would let Houston County add a local road and bridge excise fee on motor fuels of up to five cents per gallon, with proceeds used for county roads and bridges.

What This Bill Does

It would authorize the Houston County Commission to levy a road and bridge maintenance and construction excise fee on motor fuels within the county at up to 5 cents per gallon. Net proceeds would go into a special local transportation safety fund, with 2 cents per gallon distributed to incorporated cities for road/bridge purposes and the remainder to the county for county roads and bridges. The fee would be collected like the state motor fuel tax, can be administered by the county or contracted to the Department of Revenue, and all funds would be subject to audit; the measure would not reduce existing road funding, and if a statewide motor fuel tax is enacted within four years, the local rate would drop to 2 cents per gallon with distribution adjustments.

Who It Affects

• Motor fuel sellers, distributors, storers, and users within Houston County would pay the new excise fee up to 5 cents per gallon.
• Incorporated cities in Houston County and the county government would receive and use portions of the net proceeds for road and bridge projects (cities receive 2 cents per gallon; the remainder goes to the county).

Key Provisions

• Authorizes a local constitutional amendment to empower Houston County to levy a road and bridge maintenance and construction excise fee on motor fuels within the county at up to 5 cents per gallon.
• Net proceeds are deposited into a special local transportation safety fund; 2 cents per gallon go to incorporated cities for road/bridge purposes, and the remainder goes to the county for county roads and bridges.
• The fee is collected like the state motor fuel tax and may be administered by the county or contracted to the Department of Revenue, with procedures matching the state tax.
• All records are audited by the Office of Examiners of Public Accounts; the new revenue cannot reduce existing county or municipal road funding.
• If a statewide motor fuel excise tax is enacted within four years, the local rate decreases to 2 cents per gallon and distributions are adjusted accordingly.
• After ratification, no incorporated city or town may levy a privilege license or excise tax on liquid motor fuels (except ordinary business licenses).
• Act 82-727 is repealed upon implementation of the local excise fee.
• An election to ratify the amendment will be held at the next general election with specified ballot language.

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