HB360 Alabama 2018 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

Regular Session 2018

Title

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

Summary

Allows Alabama counties to put a local vote to tax gasoline and diesel by up to 5 cents per gallon for up to five years to fund specific road and bridge projects.

What This Bill Does

A county commission can call a local referendum to authorize a county excise tax on gasoline and diesel up to 5 cents per gallon for up to five years for designated road and bridge projects. If approved, the tax is collected from distributors, retailers, or storers, and net proceeds go into a local transportation safety fund to pay for county roads, bridges, public transportation, or municipal projects with consent. The county must prepare a project list before the referendum, keep it fixed after adoption, and ensure project costs fit within 120% of expected revenues; subsequent referendums for new levies are allowed under the same rules.

Who It Affects

• Distributors, retail dealers, and storers of gasoline or diesel in the affected counties who would be responsible for collecting and remitting the tax.
• County residents and travelers in the affected counties who would fund local road and bridge projects through the new fuel tax (indirectly through fuel prices).

Key Provisions

• Section 2(a): The county commission may adopt a resolution to place a local referendum on levying a county excise tax on gasoline and diesel, with a rate not exceeding 5 cents per gallon and a duration not exceeding five years.
• Section 2(b): Before the referendum, the county must compile a project list funded by the tax, based on estimated revenues and costs; total project costs cannot exceed 120% of estimated revenues.
• Section 2(c): Once the project list is adopted, it cannot be altered; funds may only go to listed projects until they are completed; the list must be publicized in specified locations.
• Section 2(d): The referendum must be placed on a ballot with specific wording and held during a county's primary or general election.
• Section 3: If voters approve, the county may levy the tax for the stated period; additional levies can be considered through subsequent local referendums under the same procedures.
• Section 4-5: Tax collection is by distributors, retailers, or storers; monthly reports and payments are due by the 20th of each month; delinquent taxes incur penalties and may be collected by the county.
• Section 7: Several exemptions apply, including government use, interstate commerce, and certain dyed diesel or aviation fuel under specified conditions.
• Section 12: Net proceeds go to a Special Local Transportation Safety Fund for county roads/bridges and related public transportation; the county awards contracts and follows bidding rules; limits on using funds for salaries, equipment, or more than 30% for materials by county workforces; design standards vary by road traffic levels.
• Section 13: The county engineer must prepare an annual public report on fund expenditures and project status, with postings for public access.
• Section 9-11: The county can adopt administrative rules, contract with the Department of Revenue for collection, and enforce compliance; penalties and liens protect the tax revenue.
• Section 15: The act becomes effective immediately after the governor signs it or it becomes law by other means.

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