fbpx
You Are Here: Home » Metro/State/Nation » Gas tax bill passes Senate committee

Gas tax bill passes Senate committee

From The Trussville Tribune staff reports

MONTGOMERY — An Alabama Senate committee has approved a 10 cent gas tax increase.

The Senate Transportation and Energy Committee approved the tax 12-0, according to Senate President Pro Tem Del Marsh’s office.

Governor Kay Ivey is promoting the tax increase be phased in with an immediate 6 cents per gallon hike and 2 cents to be added next year, with another 2 cents per gallon increase in 2021.

The current state gas tax, which has been in place since 1992, is 18 cents per gallon. There are additional federal, county and city gas taxes already in place.

Under Ivey’s plan, the tax is expected to raise about $320 million per year in additional revenue when fully implemented. The state would retain 60 percent of the revenue, with counties receiving 25 percent and cities splitting about 8 percent. An additional 7 percent would be used for improvements to Mobile Bay.

The measure now moves to the Alabama Senate floor.

Scroll to top