SB122 Alabama 2023 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Shay ShelnuttSenator
Republican
Session: Regular Session 2023
Title: Relating to municipalities and counties; to require the proceeds from motor fuel taxes levied by municipalities and counties to be used for road and bridge construction and maintenance with certain exceptions.
Summary: SB122 would require motor fuel taxes levied by Alabama municipalities and counties to be used only for road and bridge construction and maintenance, with limited exceptions.
What This Bill Does
It restricts municipal and county motor fuel tax revenues to road and bridge construction and maintenance. If a municipality or county currently uses such revenue for other purposes and it is pledged to debt, that use may continue for up to five years, after which the revenue must be redirected to road/bridge work or the tax plan must be repealed. If any portion of a proposed tax increase is tied to non-road用途, the increase would not take effect unless approved by a local referendum held prior to the levy. The act becomes effective on the first day of the third month after passage, and conflicting laws would be repealed.

Who It Affects
Municipalities and counties that levy motor fuel taxes in Alabama, who would be required to use the proceeds only for road and bridge construction and maintenance and would face a five-year debt-related exception and referendum requirements.
Local residents and businesses in those municipalities and counties, who may see changes in how motor fuel taxes are used and potential referendum requirements for tax increases.

Key Provisions
Section 1(a): All motor fuel taxes levied by municipalities or counties must be used only for road and bridge construction and maintenance (with specified exceptions).
Section 1(b): If revenue from such a tax is currently used for non-road purposes and pledged to debt, it may continue for up to five years, with other municipal revenue pledged to fully pay the debt after five years; after five years, the revenue must be used for road/bridge work or the tax must be repealed.
Section 1(c): Any proposed increase in a motor fuel tax that uses revenue for non-road purposes must be approved by a local referendum held before the levy.
Section 3: The act becomes effective on the first day of the third month after passage and approval, and conflicting laws are repealed.

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.