HB254 Alabama 2023 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Steve ClouseRepresentative
Republican
Session: Regular Session 2023
Title: Relating to municipalities and counties; to require all motor fuel taxes levied by municipalities and counties after the effective date of this act to be used only for road and bridge purposes with certain exceptions.
Summary: HB254 would restrict how local motor fuel tax revenues are spent, limiting new taxes to road and bridge-related uses with limited exceptions for existing local taxes.
What This Bill Does
The bill requires motor fuel taxes levied by municipalities and counties after the act’s effective date to be used only for costs related to administering the tax, construction, reconstruction, maintenance, and repair of roads, bridges, and rights-of-way, as well as mass transit, traffic regulation, and enforcement of traffic and motor vehicle laws. There is an exception for taxes that are already levied under local laws that were in effect on the act’s effective date. The act also repeals conflicting laws and sets the effective date as the first day of the third month after passage and governor approval.

Who It Affects
Municipalities and counties that levy motor fuel taxes after the act’s effective date; their proceeds would be restricted to road/bridge and related costs.
Residents and businesses within those municipalities and counties, who may see local tax money redirected toward road/bridge projects, traffic regulation, and enforcement.

Key Provisions
Section 1: After the act’s effective date, new local motor fuel taxes may be used only for administering the tax, road/bridge construction, maintenance, mass transit, rights-of-way, traffic regulation, and enforcement of traffic and motor vehicle laws, with an exception for taxes already in effect under local laws as of the effective date.
Section 2: Repeals any laws that conflict with HB254.
Section 3: The act becomes effective on the first day of the third month after its passage and governor 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: Motor fuel taxes levied by counties and municipalities, use restricted to road and bridge construction.