HB362 Alabama 2017 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Elaine Beech
Democrat
Session: Regular Session 2017
Title: Washington Co., gas and diesel fuel tax, sales and use tax, and leasing tax authorized, referendum
Summary: HB362 would let Washington County impose new taxes on fuel, sales, and leasing to fund roads and bridges, but only if voters approve in a county referendum, with specific rate caps and exemptions.
What This Bill Does
It authorizes a gasoline/diesel excise tax up to 2 cents per gallon on distributions, sales, or withdrawals within the county, with distributors generally responsible for collection (retail dealers or storers if the distributor doesn’t collect). It also authorizes a 1% county sales and use tax and a 1% leasing tax on equipment and vehicles, collected like state taxes, with a 0.5% rate applied to certain vehicle and trailer categories. Net proceeds go to a county special revenue fund for roads and bridges, and enforcement includes penalties, liens, and Department of Revenue collection options; exemptions apply for government use, interstate commerce, aviation fuel, among others. The taxes and their operation depend on a county referendum; if voters approve, Sections 2 and 3 take effect immediately; if not, the act is repealed.

Who It Affects
Gasoline and diesel fuel distributors, retail dealers, and storers in Washington County would be responsible for collecting and remitting the new fuel tax, reporting monthly, and keeping records; penalties and enforcement apply for noncompliance.
Washington County residents and local businesses that buy fuel or lease equipment/vehicles would pay the new taxes (added to prices) and would benefit from improved roads and bridges funded by the proceeds.

Key Provisions
Section 2: Gasoline/diesel excise tax authorized up to 2 cents per gallon on the distribution, retail sale, or withdrawal from storage; tax collected primarily by distributors, with retailers or storers liable if the distributor doesn’t collect; exemptions include government use, dyed diesel, interstate commerce, aviation fuel, refinery use, and certain federal blending permits.
Section 2: Tax is in addition to existing taxes; monthly reporting, payment due with filings; records must be kept for at least three years; penalties for delinquency (25%) and enforcement through liens and possible executions; county can adopt rules or contract collection, with the Department of Revenue able to collect if elected.
Section 3: Sales and use tax of 1% (with a 0.5% rate on certain vehicles) and a 1% leasing tax on equipment/vehicles; gross proceeds exemptions mirror state exemptions; tax collected by the Department of Revenue like state taxes; penalties and administration aligned with state tax law; costs of collection may be up to 5% and paid from tax proceeds.
Section 3: Proceeds go to a county special revenue fund for roads and bridges; taxes are a debt with liens; state and county tax laws apply to administration and enforcement; the Department of Revenue administers and enforces the taxes.
Section 4: A referendum is required; if a majority vote Yes, Sections 2 and 3 become operative immediately; if No, the act is repealed.

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