Alabama Governor Proposes 10-Cent Gas Tax Increase For Roads

February 28, 2019

Alabama’s governor is proposing a 10-cent per gallon gas tax increase.

Governor Kay Ivey on Wednesday announced her Rebuild Alabama Infrastructure Plan at a press conference, alongside a host of legislators, stakeholder groups and other state and local officials.

The Rebuild Alabama plan proposes a 10-cent increase in Alabama’s fuel tax with an index designed to coincide with the rising costs of building roads. The state currently imposes a flat excise tax of 18 cents-per-gallon on gas and 19 cents-per-gallon on diesel, without adjusting for inflation and other construction and maintenance costs.

This combined fuel tax revenue generates 80 percent of Alabama’s transportation funding. The plan’s 10-cent increase will be phased in over the next three years.

New revenue generated by the increase will be dispersed between state, county, and municipal governments in Alabama. These funds are to be used for transportation infrastructure improvement, preservation and maintenance projects. A separate portion of the revenues will go to pay a bond to be issued to finance improvements to the ship channel providing access to the facilities of the Alabama State Docks.

“My Rebuild Alabama Infrastructure Plan is a comprehensive approach to a glaring issue affecting citizens in every corner of the state,” Governor Ivey said. “After 27 years of stagnation, adequate funding is imperative to fixing our many roads and bridges in dire need of repair. By increasing our investment in infrastructure, we are also making a direct investment in public safety, economic development, and the prosperity of our state.”

A 2019 report by the University of Alabama’s Alabama Transportation Institute and Alabama Transportation Policy Research Center found that cars and trucks are putting approximately 69 billion miles on Alabama’s roadways annually, a 17 percent increase over the past 15 years.

With more travelers on the road, areas of congestion and public safety are a major concern. One-third of all traffic fatalities are estimated to be a direct result of a deficient roadway feature, according to the American Society of Civil Engineers.

State Representative Bill Poole has been instrumental in the crafting of this plan and will sponsor the Rebuild Alabama bill during the 2019 Regular Legislative Session.

“Today’s announcement is a major step in the right direction to improving Alabama’s infrastructure. I appreciate Governor Ivey for leading the charge and allowing me to help develop this plan,” Rep. Poole said. “A number of studies have concluded that Alabama’s aging infrastructure cannot continue to operate in its current state without severe consequences; these are simply facts we can’t ignore.”

According to TRIP, a national transportation research group, 30 percent of major roads and highways in Alabama are in poor or mediocre condition because of inadequate state and local funding. In 2015, Alabama’s roads received a D+ grade in a report card released by the American Society of Civil Engineers.

Ideally, county road resurfacing should operate on a 15-year schedule; yet, county governments are currently operating on a 56-year schedule. Additionally, a striking 1,200 bridges are classified as structurally deficient in Alabama, ranking the state as 17th in the nation. Even worse, counties should be operating on a 50-year bridge replacement schedule, but they are actually operating at a rate of 186 years.

State Senator Clyde Chambliss, who represents parts of rural Alabama, will carry the bill in the Senate.

“With one of the South’s biggest ports and the state’s growing economic development success, improving our poor infrastructure system allows us to remain competitive nationally and globally,” Sen. Chambliss said. “As a civil engineer, I applaud Governor Ivey’s efforts to address this pressing issue and look forward to working with stakeholders, from all levels of government, to ensure her infrastructure bill is successful.”

State government currently provides 40 percent of Alabama’s total transportation funding, while the rest comes from the federal government. However, increasing uncertainty about federal infrastructure funding has created a sense of urgency for states to have reliable funding sources.

Pictured: Alabama Gov. Kay Ivey on Wednesday proposed a 10-cent per gallon gas tax increase. Photo for NorthEscambia.com, click to enlarge.

Comments

13 Responses to “Alabama Governor Proposes 10-Cent Gas Tax Increase For Roads”

  1. Worried on March 6th, 2019 8:06 pm

    If this is a SMOKESCREEN and a boondoggle to get funding for the Mobile Port Alabama State Docks who do we call on to do the right thing and shoot this down ??? Also, don’t they realize they will raise the cost of all goods that are delivered via any vehicle that has to pay the additional gas tax !!! That is bad for the economy and the residents of our state !!!

  2. Bill on March 4th, 2019 11:37 pm

    SMOKESCREEN!! It is a boondoggle to get funding for the Mobile Port Alabama State Docks. Remove the docks from this bill and it would be ok, the roads need it, but DO NOT burden the citizens with maintaining a dock used by PRIVATE BUSINESSES by hiding it as infrastructure (roads) improvement taxes.

  3. Mark S Fleishour on March 4th, 2019 3:28 pm

    I think there is a horrible misconception out there that local, state and federal governments can tax the working people and they won’t do anything about it … WRONG !!!!!.. this is one more nail in the coffin for ANY politician out there who thinks his job is safe !!! I like the movement out there that is growing around the USA. It is a simple fix to all of these gouges the politicians are trying to shove down our throat !!! The movement is simply to Vote AGAINST ALL politicians who are in office now regardless of their party and ONLY vote for someone who is NOT currently a politician !!!! In 5 or 6 years we will “DRAIN THE SWAMP” ourselves and replace all the vermin with honest people who have pride in their work and respect for their voters !!!!

  4. Sam on March 2nd, 2019 7:14 am

    Alabama needs the lottery. It would have plenty of money for roads.

  5. Florida resident on March 1st, 2019 6:54 am

    I live on Florida, and regularly fill up in Alabama because the gas is so much cheaper. I think the ten cent tax will probably bring Alabama right in line with other states gas cost. I hate that it’s going up, but honestly, alot of non residents have enjoyed the lower gas prices without really contributing anything to Alabama.

  6. Joy on March 1st, 2019 12:17 am

    LOWER THE GAS TAX AND RAISE THE TABACCO TAX!

  7. Master Mechanic on February 28th, 2019 9:49 pm

    Dangerous
    Answer to your question…………WELFARE

  8. Wilykyote on February 28th, 2019 10:19 am

    All y’all within 50 miles of Flarda might as well “ come-on-down “
    And all usin can stay home instead of goin to “Buc-Eees”. b.a.g. !

  9. nod on February 28th, 2019 9:54 am

    unfair tax. only taxes people that own cars. everyone uses the roads.

  10. Niknak50 on February 28th, 2019 9:46 am

    The reason our nations infrastructure is crumbling is because politicians always rob the eggs from these funds for other projects. It happens in every state, and if you read the article you can see the what the pet project is here. The Alabama state docks! How many of you can drive your vehicle up the Mobile river? Why 10 cents a gallon? Why not 2 cents a gallon, why gouge the people when they are just starting to prosper? In a year’s time 10 cents a gallon will hurt everyone that owns a vehicle.
    Residents of Alabama need to raise sand with their legislators now to get this bill killed.

  11. Mic Hall on February 28th, 2019 9:46 am

    Wow! This is going to make gas stations on across the state lines VERY popular. I don’t know if the governor knows this but this will be primarily paid by residents of Alabama. Everyone else will fill up just before crossing the state lines. Almost any vehicle can cross the state without needing another fillup.

    This will reduce the actual dollars in taxes paid by those traveling through the state.

  12. mike on February 28th, 2019 8:49 am

    wow, 10 cents a gallon! that’s quite a haul! could you imagine the dough they’ll be rolling in!?! roy, call my wife and tell her we’re going to hawaii this summer! woohoo! :D

  13. dangerous on February 28th, 2019 7:26 am

    Republican = reduce taxes???

    The State has tax on groceries and has tax on income, where’s the money going??

Written by William Reynolds · Filed Under News