SB277 Alabama 2022 Session

Summary

Primary Sponsor

Larry StuttsSenator

Republican

Session

Regular Session 2022

Title

Rebuild Alabama Act, removing index provisions, motor fuel excise taxes, Sec. 40-17-370 am'd.

Summary

This bill would eliminate automatic NHCCI-based adjustments to Alabama's additional motor fuel tax under the Rebuild Alabama Act, effectively freezing future rate changes.

What This Bill Does

It removes the provision that would adjust the motor fuel tax rate every other year based on the National Highway Construction Cost Index (NHCCI). It also removes the start date (October 1, 2023) and the biannual adjustment schedule, including the cap of a $0.01 per gallon change. As a result, the additional excise tax on gasoline and diesel would no longer be changed automatically by NHCCI, and rate changes would not occur under this mechanism.

Who It Affects

• Motorists and other buyers of gasoline and diesel, who would pay a fixed additional tax rate instead of potential future increases or decreases tied to NHCCI.
• State and local governments that rely on the tax revenue for transportation infrastructure, which would have more predictable funding since the tax rate would not be automatically adjusted.

Key Provisions

• Eliminates the adjustment of the motor fuel excise tax rate by the NHCCI every other year.
• Removes the provision that beginning Oct 1, 2023 and on July 1 of every other year thereafter, the tax rate could be adjusted, including the cap of a $0.01 per gallon change.
• Amends Section 40-17-370 to reflect removal of the indexing/adjustment mechanism for the additional motor fuel tax.

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