The Alabama state Senate March 12 approved legislation that will help generate more than $300 million per year in additional transportation infrastructure investment. Senators agreed 28-6 to increase Alabama’s fuel tax by 10 cents-per-gallon, phased in over three years and indexed to the National Highway Construction Cost, and new annual registration fees of $200 for electric motor vehicles and $100 for hybrid motor vehicles. Gov. Kay Ivey (R) signed the bill into law the same day.
Increasing revenue for roads and bridges is a key initiative of Gov. Ivey’s “Rebuild Alabama Infrastructure Plan.” She convened a special legislative session for the sole purpose of finding a transportation funding solution.
House Bill 2 (HB 2) was widely acclaimed for achieving overwhelming, 83-20 bipartisan support in the House. Only 18 of 77 House Republicans, and two of 28 Democrats in the chamber, voted against it. House Minority Leader Anthony Daniels (D-Huntsville) declared that consensus on transportation investment is only the start of “an extremely exciting four years of bipartisanship.”
Alabama is now the 28th state that has increased or adjusted its state motor fuel tax to support needed transportation investments since 2013. Several other states are currently advancing their own legislation to increase motor fuel taxes for transportation investment.