SB89 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

County governments could hold local referendums to approve a temporary up to 5-cent per gallon gas/diesel tax to fund specific road and bridge projects.

What This Bill Does

If passed, a county may vote to levy up to five cents per gallon on gasoline and diesel for up to five years to pay for designated road and bridge projects. A project list must be prepared before the referendum and funds must be limited to the listed projects, with a total cost not exceeding 120% of expected revenues. Funds would be collected by distributors and may be administered by the county or collected by the Department of Revenue, with monthly reporting, penalties for delinquency, and liens as needed. Net proceeds go to a special local transportation safety fund for project costs, with the county serving as the awarding authority and following bidding rules; there are exemptions and reporting requirements, and the possibility of future referendums for additional levies.

Who It Affects

• County commissions and county governments, who would prepare the project list, propose referendums, administer the tax, and oversee project funding and contracting.
• Gasoline and diesel fuel distributors, retail dealers, and storers in the county, who would collect and remit the excise tax, file monthly distributions/sales/withdrawals reports, and face penalties or lien actions for noncompliance.

Key Provisions

• The county commission may call a local referendum to levy a county excise tax on gasoline and diesel fuel up to five cents per gallon, for up to five years, to fund designated road and bridge projects identified beforehand by the county.
• A project list must be compiled before the referendum, funded projects cannot exceed 120% of estimated revenue, and the list cannot be altered after adoption; the list may include projects within municipalities within the county.
• Net proceeds go to a special local transportation safety fund; the county is the awarding authority for projects; contracts follow standard competitive bidding procedures; no more than 30% of proceeds may be used for materials purchased for county work; design standards depend on traffic levels.
• Tax collection is intended to be handled by distributors; retailers or storers may be liable if the tax is not collected; monthly reporting is required; a 25% delinquency penalty may be imposed unless waived for good cause; liens and possible court actions are allowed.
• Exemptions include fuel used by government, interstate commerce, dyed diesel (with specific exceptions), aviation fuel, refinery use, and certain federally permitted blending activities.
• The county may contract with the Department of Revenue to collect the tax, with net proceeds after costs delivered to the county; the Department may adopt collection rules.
• Subsequent referendums for additional levies are allowed under the same procedures; each levy cannot exceed five cents or five years.
• Annual reporting by the county engineer on expenditures and project status is required, with audits by the Office of Examiners of Public Accounts and public posting.

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