HB149 Alabama 2019 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2019

Title

Rebuild Alabama Act, amended to sunset the automatic indexing of the gasoline and disesel fuel tax after a specified time frame, Act 2019-2 am'd.

Summary

HB149 would sunset the automatic indexing of gasoline and diesel fuel taxes after 20 years, stopping future NHCCI-based rate changes while preserving the base tax increases from Act 2019-2.

What This Bill Does

It keeps the base fuel tax increases that Act 2019-2 established (6 cents per gallon starting August 31, 2019; then 8 cents on October 1, 2020; then 10 cents on October 1, 2021). It ends automatic indexing of the fuel tax after September 1, 2039, so there would be no NHCCI-based adjustments after that date. Until 2039, adjustments would still occur under the Act 2019-2 framework, with each adjustment capped at no more than 1 cent per net gallon and occurring every other year. Net tax proceeds would continue to be distributed to the state, counties, and municipalities for transportation infrastructure as provided by the act.

Who It Affects

• Gasoline and diesel fuel buyers (drivers and businesses) who would pay the at-pump tax increases through 2039, after which automatic increases would stop.
• State and local governments and transportation programs that rely on net tax revenues for funding transportation infrastructure, which would continue under the existing framework but without automatic indexing after 2039.

Key Provisions

• Sunsets the indexing provisions of Act 2019-2 (the automatic NHCCI-based rate adjustments) on September 1, 2039.
• Maintains the base fuel tax increases from Act 2019-2: 6 cents per gallon beginning August 31, 2019; 8 cents per gallon beginning October 1, 2020; and 10 cents per gallon beginning October 1, 2021.
• Indexing adjustments are capped at no more than 1 cent per net gallon per adjustment and occur every other year through 2039.
• The Department of Revenue must notify relevant industry parties (terminal suppliers, position holders, licensed distributors, importers) of the applicable rate adjustment for the 12-month period beginning March 1.
• The act becomes effective immediately upon passage and approval by the Governor.

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