From The Trussville Tribune staff reports
MONTGOMERY — A proposed increase in the Alabama gas tax has gotten one step closer after clearing a major committee in the state House on Thursday.
See Related: Ivey proposes 10 cent per gallon gas tax hike, API says offset gas tax increase with tax cuts
The House Transportation, Utilities and Infrastructure Committee approved the proposal for consideration and further debate by the full House, according to U.S. News and World Report.
Ivey is promoting the tax increase be phased in with an immediate 6 cent per gallon hike and 2 cents to be added next year with another 2 cent 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.
“My Rebuild Alabama Infrastructure Plan is a comprehensive approach to a glaring issue affecting citizens in every corner of the state,” 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.”
U.S. News and World Report said that the approval of the committee came via a voice vote.