SB217 Alabama 2020 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2020

Title

Gasoline and motor fuel taxes, levied by muns. and counties, use restricted to road and bridge construction and maintenance, exceptions if pledged for bonds, special projects, or after approval by referendum

Summary

SB217 would require local motor fuel taxes levied by cities and counties to be spent only on road and bridge construction and maintenance, with limited exceptions for debt financing and voter-approved changes.

What This Bill Does

If passed, the bill would restrict how municipal and county motor fuel tax proceeds can be used to road and bridge work. It allows up to five years for existing non-road uses if the revenue is pledged to bonds or other debt, after which the revenue must be redirected to road/bridge projects or the tax repealed. It also requires a referendum for any proposed tax increase if the tax has been used for non-road purposes. The act would repeal conflicting laws and take effect a few months after governor approval.

Who It Affects

• Municipalities and counties that levy motor fuel taxes, who would have to restrict use to roads and bridges and follow the debt and referendum rules.
• Residents and taxpayers in those municipalities and counties, who could see changes in how motor fuel tax revenue is spent and may need to vote in referendums for tax increases.

Key Provisions

• All motor fuel taxes levied by municipalities or counties must be used only for road and bridge construction and maintenance, with certain exceptions.
• If revenue from a motor fuel tax is used for a non-road purpose and is pledged to bonds or other debt, the municipality or county may keep using it for up to five years and must later replace that revenue with other funds to fully pay the debt; after five years, the revenue must be used only for road/bridge work or the tax is repealed.
• Any proposed increase in a municipal or county motor fuel tax that funds non-road uses is not effective unless approved by a referendum of the municipality or county before the levy.
• Conflicting laws are repealed; the act becomes effective on the first day of the third month after approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Gasoline Tax