SB386 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

SB386 would let counties put a local vote to approve a gasoline tax of up to 5 cents per gallon for up to five years to fund specific road and bridge projects.

What This Bill Does

The bill allows a county to call a local referendum to authorize a county excise tax on gasoline and motor fuels up to 5 cents per gallon for designated road and bridge projects, lasting no more than five years. Before the referendum, the county must create a project list funded by the tax, with total project costs not exceeding 120% of estimated revenues; once adopted, the list cannot be altered. If voters approve, the tax would be collected from distributors, retailers, and storers in the county and proceeds would go into a special local transportation safety fund to pay for the listed projects, with the county as the awarding authority and contracts governed by state procurement rules; the tax may be renewed with subsequent referendums for additional levies.

Who It Affects

• County residents and motorists in the affected county, who could pay up to an additional 5 cents per gallon for gasoline and motor fuels if the referendum passes, with funds directed to local road and bridge projects.
• Gasoline distributors, retail dealers, and storers in the county, who would be responsible for collecting and remitting the tax (or the county could contract with the Department of Revenue for collection). Retailers or storers could be liable if the distributor does not collect the tax.

Key Provisions

• Allows a county commission to call a local referendum to levy a county excise tax on gasoline and motor fuels up to 5 cents per gallon for up to five years, for specified projects.
• Requires a project list before the referendum; total estimated project costs must not exceed 120% of the estimated tax revenues; the list must be approved by the county commission and cannot be altered after adoption.
• Proceeds go into a special local transportation safety fund; the county administers project funding and contracts must follow state procurement laws; no more than 30% of funds may be used for materials purchased by county work forces; salaries and equipment costs funded by the tax are prohibited.
• Tax collection can be administered by the county, contracted out to the Department of Revenue, or other authorized methods; the act provides exemptions and sets administrative penalties for noncompliance.
• Provisions for future referendums allow additional levies under the same procedures; ballot language and election timing are specified.

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