SB11 Alabama 2025 Session

Updated Feb 23, 2026

Summary

Primary Sponsor: Linda Coleman-MadisonSenator
Democrat
Session: 2025 Regular Session
Title: Motor vehicles; additional license tax and registration fee; distribution of proceeds to the Alabama Public Transportation Trust Fund
Summary: SB11 would create new battery electric and plug-in hybrid vehicle fees and a $5 annual transportation fee, directing proceeds to public transportation, EV charging infrastructure, and road projects in Alabama.
What This Bill Does
It adds a $200 annual fee for battery electric vehicles and a $100 annual fee for plug-in hybrids, on top of existing taxes; these BEV/PHEV fees increase by $3 every four years and are reduced if federal surcharges apply, but not below minimums of $150 and $75 respectively. It creates the Electric Transportation Infrastructure Grant Program in the Department of Transportation to fund EV charging infrastructure. It distributes most BEV/PHEV fee proceeds to the state, counties, and municipalities (66.67%, 25%, 8.33%) with the remainder going to the Rebuild Alabama Fund for road projects and EV infrastructure; after BEV+PHEV share reaches 4% of total registrations, the BEV/PHEV receipts are redirected to road and bridge funding with the same distribution. Starting October 1, 2025, a separate $5 annual fee is added, and all of its proceeds go to the Alabama Public Transportation Trust Fund to improve public transportation; counties and municipalities may opt out of this $5 fee by resolution.

Who It Affects
Private vehicle owners in Alabama, especially battery electric and plug-in hybrid vehicle owners, who would pay higher annual fees and may see funds directed to transportation and infrastructure.
Counties, municipalities, and the Alabama Department of Transportation, which would receive and manage a share of the fees, administer the grant program, distribute funds for roads, bridges, and public transit, and may opt out of certain fees by resolution.

Key Provisions
Imposes BEV $200 and PHEV $100 annual licenses/fees; base auto and motorcycle taxes ($13 and $7) remain separate.
BEV/PHEV fees increase by $3 every four years; reductions may apply for federal surcharges but cannot drop BEV below $150 or PHEV below $75.
Creates the Electric Transportation Infrastructure Grant Program within the DOT to fund EV charging infrastructure.
Distributes BEV/PHEV fee receipts: $150 BEV and $75 PHEV portions to state (66.67%), counties (25%), and municipalities (8.33%); remainder to the Rebuild Alabama Fund for roads/infrastructure and EV charging projects; after BEV+PHEV registrations reach 4% of total, BEV/PHEV receipts are redirected to roads/bridges with the same distribution.
Adds a $5 annual fee starting October 1, 2025, with all proceeds going to the Alabama Public Transportation Trust Fund to expand public transportation; counties/municipalities may opt out of this fee by resolution.
Effective date is October 1, 2025.

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