A bill to increase both gas and diesel taxes by five cents in Alabama has passed its first committee on a voice vote and goes to the full House of Representatives on Thursday. The bill indexes both taxes using only two-cent increments.
"A committee in the Alabama House of Representatives gave its approval Monday to a bill that would add a 5-cent-per-gallon tax to gasoline and diesel fuel," writes Tim Lockette for The Anniston Star. On Thursday, it goes to the full House, one of eight tax and fee increases needed to balance a budget shortfall, according to the ABC3340 video report.
The bill [HB28], which now moves to the full House for a vote, would automatically add a 2-cent-per-gallon increase in some years, if the price of gas falls within a limit set by a complex formula outlined in the bill.
The Associated Press clarifies that depending on the price of gas and diesel, the tax could decrease as well. What's unusual is that the tax will only change in two-cent increments. Adjustments will be made based on the Consumer Price Index (CPI) and the price of gas and diesel according to that "complex formula" Lockette mentions. See HB28 text for more information [PDF].
The state's 20.87 cents per gallon gas tax "hasn't increased the per-gallon tax since 1992 and can't continue to operate on 1990s revenue levels," state the bill's sponsor, Rep. Mac McCutcheon, R- Huntsville.
Our last post on Alabama transportation funding was on a 2010 proposal to use funds "from an investment account that generates earnings to support Medicaid, prisons, public health and other non-education state services" to pay for roads, typical of state legislators that will resort to diverting existing revenue streams rather than increasing fuel taxes.
Bobby Atkinson of Equipment World reports that the tax increase is opposed by the Alabama Trucking Association. Spokesman Jim Sizemore said it would be damaging to the trucking industry.
“We’re opposed to the bill,” Sizemore said. “It is a massive increase, and it’s not good for the economy.
However, their national counterpart, the American Trucking Associations, has been an outspoken proponent for raising the federal gas tax.
According to the American Petroleum Institute, Alabama had the 11th lowest gas prices in the nation as of April [PDF].
Hat tip: AASHTO Daily Journal Update.
FULL STORY: Gas tax increase gets nod from Alabama House committee
ICYMI: 12 States Hiked Gas Taxes on Monday
On July 1, Illinois and Ohio increased gas taxes by double digits: 19 cents per gallon and 10.5 CPG, respectively, followed by California at 5.6 CPG, all due to legislation passed this year or in 2017. Diesel tax hikes were even higher.
Democrats Balk at Gov. Newsom's Gas Tax Holiday
Saving motorists 3 cents a gallon may be a slam dunk for Republican leaders in the California legislature who opposed hiking the gas tax in the first place, but Democratic leaders are reluctant to tamper with a hard-fought legislative and ballot win.
Washington State to Decide on Transition From Gas Tax to Road Usage Charge
Having completed a pilot program last year, the Washington State Transportation Commission will hear a report in October and vote in December on phasing out its 49.4 cents per gallon gas tax, fourth highest in the nation but not indexed to inflation.
Montreal Mall to Become 6,000 Housing Units
Place Versailles will be transformed into a mixed-use complex over the next 25 years.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
Four Reasons Urban Planners Can’t Ignore AI
It’s no longer a question of whether AI will shape planning, but how. That how is up to us.
Bend, Deschutes County Move to Restrict Major Homeless Encampment
City and county officials are closing off portions of an area known as Juniper Ridge where many unhoused residents find shelter, hoping to direct people to housing and supportive services.
High Housing Costs Driving Down Transit Ridership in LA
When neighborhoods gentrify and displace lower-income residents, transit ridership suffers, new research shows.
Iowa Legalizes Accessory Dwelling Units
A new law will allow property owners to build ADUs on single-family lots starting on July 1.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
City of Mt Shasta
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
City of Camden Redevelopment Agency
Municipality of Princeton (NJ)
Regional Transportation Commission of Southern Nevada