HB81 Alabama 2019 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2019

Title

Motor vehicles and motor fuels, Rebuild Ala. Act., add'l tax on gasoline and diesel fuel of eight cents in two increments, add'l licensing tax on electric and hybrid electric automobiles, distribution of proceeds for state, county, municipal, and State Port Authority transportation purposes, floor stock tax provided, bond of motor fuel terminal operators increased, taxes increased based on changes in National Highway Construction Cost Index, portion to finance improvements to ship channel related to Ala. St. Docks, ATRIP-II Committee estab., authorized to enter agreements for debt financing, Secs. 40-12-242, 40-17-331, 40-17-335 am'd.

Summary

HB 81 would raise fuel taxes and add vehicle fees to fund Alabama transportation improvements, create electric vehicle infrastructure programs, and direct funds to state, county, municipal, and port projects under a Rebuild Alabama framework.

What This Bill Does

It imposes an additional excise tax on gasoline and diesel starting at 6 cents per gallon, increasing to 8 cents in 2020 and 10 cents in 2021, with future NHCCI-based adjustments beginning in 2023 and a cap on yearly changes. Revenues are distributed to fund transportation projects at the state, county, and city levels, plus special allocations for the Alabama State Port Authority’s ship channel improvements; initial allocations include routing part of the EV and hybrid vehicle fees to the Rebuild Alabama Fund and local governments before broader distribution, with changes once electric/hybrid vehicle registrations exceed 2% of total registrations. The act also creates the Electric Transportation Infrastructure Grant Program under the Department of Transportation to fund charging infrastructure, establishes ATRIP-II with dedicated funding for local road and bridge projects, and imposes a floor stocks tax on motor fuels; it includes bonding and licensing changes for motor fuel operators.

Who It Affects

• Vehicle owners, drivers, and electric/hybrid vehicle owners in Alabama would face higher fuel taxes and annual registration fees for EVs and hybrids (with minimums and periodic increases).
• State and local transportation agencies (ALDOT, counties, municipalities, and the State Port Authority) would manage, allocate, and oversee new funds, grants, and project bidding for roads, bridges, ports, and related infrastructure; fuel distributors and terminal operators would face revised bonding requirements and tax administration.

Key Provisions

• Imposes an additional excise tax on gasoline and diesel: $0.06 per net gallon starting in tax periods after August 31, 2019; $0.08 starting October 1, 2020; $0.10 starting October 1, 2021; starting October 1, 2023 and every other year thereafter, the rate is adjusted by the NHCCI with a maximum change of $0.01 per net gallon per adjustment.
• Distributes tax proceeds: the first $150 of electric private passenger automobile annual fee and the first $75 of hybrid-electric annual fee go to the state (66.67%), counties (25%), and cities (8.33%), with the remainder deposited in the Rebuild Alabama Fund for electric vehicle charging infrastructure until EV/HEV registrations reach 2% of total private passenger automobile registrations; after that point, proceeds go to the Rebuild Alabama Fund and are distributed 66.67% to the state, 25% to counties, and 8.33% to municipalities.
• A portion of net tax proceeds is used to fund ship channel improvements through the Alabama Highway Finance Corporation (up to $150 million) and can be pledged as security for related loans, with termination or debt repayment by 2035 or earlier if repaid.
• Creates the Electric Transportation Infrastructure Grant Program within DOT to fund charging infrastructure and requires DOT to promulgate application rules and manage grants under the Alabama Administrative Procedures Act.
• Establishes the ATRIP-II program to fund local road and bridge projects, with annual funding of $30–$50 million (at the Director of ALDOT’s discretion) and requires projects to be bid/let by ALDOT; includes DBE goals and annual reporting to state leaders.
• Imposes a floor stocks tax on motor fuels held outside the bulk transfer/terminal system on specified dates and at each tax increase, with bonding and security requirements for licensees (suppliers, exporters, importers, distributors) and a bond framework for these licenses.
• Requires counties and municipalities to use funds for transportation projects and to post plans and annual reports; includes requirements for bid procedures, compliance certificates, and audit oversight by Examiners of Public Accounts.
• Amends Sections 40-12-242, 40-17-331, and 40-17-335 and creates the Rebuild Alabama Fund, specifying how proceeds are collected, distributed, and used for transportation purposes.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles