HB564 Alabama 2017 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

Regular Session 2017

Title

Gasoline and motor fuel tax, county commission authorized to levy up to five cents, referendum, distributed on transportation projects

Summary

HB564 would let counties put a local ballot measure to raise a gasoline tax of up to 5 cents per gallon for up to 5 years to fund specific road and bridge projects.

What This Bill Does

The bill allows a county commission to call a local referendum to authorize a county excise tax on gasoline and motor fuels up to five cents per gallon for designated road and bridge projects identified before the referendum. If voters approve, the tax would run for up to five years and the proceeds would go into a local transportation safety fund to pay for the project list approved by the county; funds must be spent on those listed projects until they are completed. The project list cannot be changed after adoption, and the county can hold further referendums for additional levies. The tax would be collected from fuel distributors (and, if necessary, retailers or storers), with exemptions specified, and could be administered by the county or through a contract with state agencies.

Who It Affects

• County residents and motorists, who would pay the tax if the referendum passes (through the price of gasoline/motor fuel).
• Fuel distributors, retailers, and storers, who would be responsible for collecting and remitting the tax (with liability assigned if collection fails).
• County government and commissioners, who would propose referenda, oversee the project list, administer funds, award contracts, and ensure compliance.
• Municipalities within the county, which could have projects funded with the tax if the county approves and with the municipality’s consent.

Key Provisions

• Allows a county commission to call for a local referendum to levy a county excise tax on gasoline and motor fuels not to exceed 5 cents per gallon, for up to 5 years, to fund designated road and bridge projects.
• Pre-referendum requirement to compile a project list funded by the tax; total estimated project costs may not exceed 120% of estimated revenues; projects must be identified and approved; list cannot be altered after adoption; posting and transparency requirements.
• If approved, the tax applies to distributors (primary collectors) and, if needed, to retailers or storers; exemptions apply for government use, interstate commerce, certain dyed fuels, aviation fuel, refineries, and federal blending permits.
• Proceeds go to a special local transportation safety fund; the county is the awarding authority for projects; contracts must follow state procurement rules; no more than 30% of funds may be used for materials by county work forces and salaries/equipment purchases are prohibited.
• Design standards require low volume road standards for routes with under 2,500 average daily traffic and standard DOT standards for higher traffic roads.
• Annual reporting by the county engineer on fund expenditures and project status, with public accessibility and forwarding to the Association of County Commissions of Alabama.
• The act can supersede conflicting laws only to the extent of the conflict; effective immediately upon governor's approval.
• The county may authorize subsequent local referendums for new levies under the same rules.

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