SB295 Alabama 2024 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2024

Title

Motor vehicles; additional license tax and registration fee; distribution of proceeds to the Alabama Public Transportation Trust Fund

Summary

SB295 would impose new annual fees on motor vehicles, especially battery electric and plug-in hybrid vehicles, and direct the money to public transportation, EV charging infrastructure, and road projects in Alabama.

What This Bill Does

It adds a $200 annual license tax/registration fee for battery electric vehicles and a $100 fee for plug-in hybrid vehicles, in addition to the existing vehicle fees. These BEV and PHEV fees would increase by $3 every four years starting July 1, 2023. The fees can be reduced in the future if federal surcharges are imposed, but not below $150 for BEVs and $75 for PHEVs. It creates the Electric Transportation Infrastructure Grant Program within the Department of Transportation to fund EV charging infrastructure, and specifies how the fee revenues are distributed, with an initial split to state, counties, and municipalities and the remainder going to the Rebuild Alabama Fund for EV charging until BEV+PHEV reach 4% of total vehicle registrations, after which the funds support road projects via the Rebuild Alabama Fund; starting October 1, 2024, a separate $5 annual fee applies to all vehicles, with proceeds going to the Alabama Public Transportation Trust Fund to improve public transportation.

Who It Affects

• Battery electric vehicle and plug-in hybrid vehicle owners who would pay the new BEV ($200/year) or PHEV ($100/year) fees (in addition to existing taxes), with potential future increases and possible reductions due to federal surcharges.
• State and local governments (state, counties, and municipalities) and public transportation riders who receive distributions from the fee revenues to fund roads, bridges, EV charging infrastructure, and public transit improvements through the new fund and grant program.

Key Provisions

• Imposes $200 annual license tax/registration fee on battery electric vehicles and $100 on plug-in hybrid vehicles, in addition to existing annual taxes/fees for private passenger cars and motorcycles; BEV and PHEV are defined in the bill.
• Requires BEV/PHEV fees to increase by $3 every four years beginning July 1, 2023, and allows reductions if future federal surcharges or fees are placed on these vehicles, but not below $150 BEV and $75 PHEV.
• Creates the Electric Transportation Infrastructure Grant Program within the Department of Transportation to fund EV charging infrastructure, with rules for applications, evaluation, grant distribution, and use of funds under the Alabama Administrative Procedure Act.
• Distributes the first $150 of BEV and $75 of PHEV fees to the state (66.67%), counties (25%), and municipalities (8.33%); the remainder goes to the Rebuild Alabama Fund to support EV charging infrastructure until BEV+PHEV registrations reach 4% of total vehicle registrations, after which BEV/PHEV fees remain at $150/$75 and funds are used for road construction, maintenance, and other eligible Rebuild Alabama Fund purposes.
• Any previously collected but unspent funds dedicated to the Electric Transportation Infrastructure Grant Program continue to be used for that program.
• A separate $5 annual vehicle fee takes effect October 1, 2024, with all proceeds deposited into the Alabama Public Transportation Trust Fund to increase public transportation options.

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 & Revenue