HB516 Alabama 2022 Session

Summary

Primary Sponsor

Dexter Grimsley

Democrat

Session

Regular Session 2022

Title

Taxation, gasoline and motor fuels taxes, portion of state excise taxes suspended on gasoline and motor fuels from May 1, 2022, until September 1, 2022.

Summary

HB516 would suspend a portion of Alabama's gasoline and motor fuels excise taxes from May 1, 2022 to September 1, 2022, with a price-based trigger to reinstate earlier if prices rise or fall to January 2022 levels.

What This Bill Does

Under current law, gasoline taxes are $0.28 per gallon and motor fuels taxes are $0.29 per gallon. HB516 would suspend a portion of those excise taxes from May 1, 2022 to September 1, 2022. The suspension can end earlier if the average monthly price for gasoline or motor fuels in Alabama during any suspension month falls to or below the January 2022 average price, as reported by the EIA. The Department of Revenue would implement the suspension and could reinstate the taxes before September 1 if the price condition is met, and it may adopt rules to carry out these changes, with the measure taking effect immediately upon the governor's approval.

Who It Affects

• Consumers who buy gasoline and motor fuels in Alabama would pay less in state excise taxes during the suspension period, potentially lowering fuel prices.
• The Alabama Department of Revenue and fuel retailers would implement the suspension, monitor fuel prices, and administer any reinstatement of the taxes.

Key Provisions

• Suspends a portion of the state excise taxes on gasoline and motor fuels from May 1, 2022, to September 1, 2022.
• Taxes affected are those levied under Section 40-17-370; base rates are $0.28 per gallon for gasoline and $0.29 per gallon for motor fuels (as of Oct 1, 2021).
• The suspension can end early if the average monthly price for gasoline or motor fuels during any suspension month falls to or below the January 2022 average price, as reported by the EIA.
• The Department of Revenue may lift the suspension and reinstate the taxes if the price condition is met and may adopt rules to implement these provisions.
• The act takes effect immediately upon passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation