HB560 Alabama 2016 Session

Summary

Primary Sponsor

Mac McCutcheon

Republican

Session

Regular Session 2016

Title

Gas and diesel fuel, additional taxes provided for, adjustment based on average of border states, additional taxes by counties prohibited except by referendum, additional fees for alternative fuel vehicles, const. amend.

Summary

A constitutional amendment to raise fuel taxes to match border states, add annual fees for alternative fuel vehicles, and limit county fuel taxes unless approved by voters.

What This Bill Does

If passed, the amendment would (1) add a 6-cent-per-gallon gasoline/diesel tax starting Oct 1, 2016, with revenue going to the Alabama Transportation Safety Fund; (2) in 2019, 2023, and 2027, add further taxes equal to the difference between the border states’ average gasoline tax and Alabama’s tax, calculated by the Department and collected into the Safety Fund, with rates updating based on recalculations and potential legislative action; (3) prohibit counties from levying local fuel taxes unless approved by a voter referendum, while municipalities could levy such taxes; and (4) charge annual fees for alternative fuel vehicles ($100 for private passenger, $150 for commercial), with funds going to the Transportation Safety Fund for specified purposes.

Who It Affects

• Gasoline and diesel vehicle owners in Alabama, who would pay higher excise taxes (initial 6-cent per gallon increase, plus later adjustments) and, if they own alternative fuel vehicles, annual fees of $100 (private) or $150 (commercial).
• Owners of private passenger and commercial alternative fuel vehicles, who would pay annual fees that fund the Alabama Transportation Safety Fund.
• Counties, which would be barred from imposing local gasoline or diesel fuel taxes unless voters approve via referendum (with some conditions); cities and municipalities could still authorize local fuel taxes after ratification.
• The Alabama Department of Revenue and the Legislature, which would compute and adjust the tax rates over time and determine how funds are collected and spent.
• The Alabama Transportation Safety Fund and transportation programs that depend on these funds, as revenue must be deposited there and spent only for purposes specified by the related act.

Key Provisions

• Section 1(a)-(b): Adds a new 6-cent-per-gallon excise tax on gasoline and diesel starting Oct 1, 2016, with revenue paid into the Alabama Transportation Safety Fund and spent as allowed by SB180 (2016).
• Section 1(c)-(d): Beginning Oct 1, 2019, 2023, and 2027, adds additional taxes equal to the difference between the Border States Average Gasoline Tax and the Alabama Tax on Gasoline, calculated by the Department; recalculations occur by Feb 1 of those years and rates take effect Oct 1 the following Regular Session year, unless the Legislature passes a joint resolution to continue the prior rate; after 2027, adjustments require a separate act.
• Section 1(e): All additional taxes collected under these provisions go into the Alabama Transportation Safety Fund and are spent only as allowed by SB180.
• Section 2(a)-(b): Counties may not enact local gasoline/diesel taxes unless approved by voter referendum; municipalities may enact local fuel taxes after ratification.
• Section 3(a)-(b): Starting Jan 1, 2017, there are additional annual fees of $100 for each private passenger alternative fuel vehicle and $150 for each commercial alternative fuel vehicle, with commercial fleet portions prorated by miles operated in Alabama; fees go into the Alabama Transportation Safety Fund for defined uses; definitions clarify what counts as an alternative fuel vehicle.

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