SB281 Alabama 2021 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2021

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

SB281 would require city and county motor fuel taxes to be used mainly for roads and bridges, with limited exceptions.

What This Bill Does

It changes local motor fuel tax rules so funds collected by municipalities and counties must be spent on road and bridge construction and maintenance. If a local tax is already used for non-road purposes and is pledged to pay bonds, that use can continue for up to five years, after which other revenue must fully cover the debt or the tax use must switch to roads and bridges. If a tax increase would fund non-road uses, that increase must be approved by a referendum before it could take effect.

Who It Affects

• Municipalities and counties that levy motor fuel taxes: must limit use to roads and bridges, with limited, time-bound exceptions.
• Local governments with existing bond debt funded by motor fuel tax revenues: may continue that use for up to five years, but must replace the revenue with other funds to repay the debt after five years.
• Bondholders and debt issuers: impacted by the requirement to shift revenue sources after five years to maintain debt payments.
• Voters in municipalities and counties: their approval via referendum would be needed for any proposed tax increases intended for non-road uses.

Key Provisions

• Section 1(a): After the act becomes effective, motor fuel taxes levied by municipalities or counties may be used only for road and bridge construction and maintenance, with limited exceptions.
• Section 1(b): If existing motor fuel tax revenue is used for non-road purposes and pledged to secure bonds, the municipality/county may continue that use for up to five years and must use other revenue to fully pay the debt after five years; after that period, the revenue must be used only for roads/bridges or the law would be repealed.
• Section 1(c): Any proposed increase in a motor fuel tax that would fund non-road uses would not take effect unless approved by a referendum before the levy.
• Section 2: Any conflicting laws are repealed.
• Section 3: The act becomes effective on the first day of the third month after passage and approval.

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