Alabama Gas Tax Advances in House

MONTGOMERY, Ala. — Alabamians would pay another 4 cents per gallon at the gas pump under a bill that moved forward in the Alabama House of Representatives on April 11.

The bill, by Rep. Bill Poole, (R-Tuscaloosa), would impose the 4-cent tax in September, with additional 2-cent and 3-cent hikes scheduled for later years.

Poole said the state needs more money to fix its roads because the state has fallen behind other states in maintaining roads.

"If you want to bring manufacturing back to this state, what's it going to take? Roads and bridges," Poole told the House Committee on Transportation, Utilities and Infrastructure in a public hearing on the bill.

Transportation officials have long complained of a squeeze on road funds due to the state's 18 cents per gallon gas tax, which hasn't increased since the early 1990s. Better gas mileage allows cars to put more wear on roads while using less gas — and generating less tax, gas tax advocates said.

Poole said the cost of road maintenance has gone up by about 60% since 1990. He said car repairs related to road damage are costing Alabama drivers money, and he said road conditions could be to blame for a 25% spike in traffic deaths last year.

"It's the right thing to do for the economy of the state of Alabama," Poole said.

Past efforts to raise the gas tax have failed, despite growing agreement among business groups and lawmakers that some sort of increase is needed. Pressure this year is higher, because of a widespread sense that the Trump administration will produce a federal road-building proposal that will require local matching funds.

Poole's bill would set aside tax money to pay for a $1.2 billion bond issue for road repairs. The money would be split between the state, counties and cities. Drivers of alternative-fuel vehicles that don't use gas would pay a fee of $100 per year.

Representatives of several organizations — including the Alabama Farmers Federation, typically a formidable foe of tax proposals — spoke in favor of the bill in the public hearing April 11. Lobbyists for cities criticized the split in state funds, saying cities would get too little of the money.

Steve Raby, speaking for Huntsville city leaders, said the tax would take $71 million per year from the city and give $7 million back for road repairs.

"Tithing is really good for Sunday School but it's really tough to take 10% and build a road," he said.

Phillip Wiedmeyer of the Alabama Clean Fuels Coalition said the $100 fee would amount to a double tax on cars fueled by natural gas, due to a tax already imposed by the state.

Committee members in a voice vote gave the bill their approval. The bill heads to the House for consideration.