Alabama House committee OKs six-cent gas tax increase

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A bill to raise the state gas tax in Alabama by about six cents per gallon was approved by an Alabama House committee last week Thursday. The bill now moves to the House of Representatives for a vote. The bill would create a separate excise tax that would be adjusted in 2019, 2023, and 2027 based on the average gas tax in surrounding states, which include Florida, Georgia, Mississippi, and Tennessee. Alabama’s gas tax is currently 18 cents per gallon and hasn’t been increased since 1992. The bill would also assess an annual fee of $100 for private alternative fuel vehicles and $150 for commercial alternative fuel vehicles, excluding hybrids. A companion bill, also approved by the committee, would create a Transportation Safety Fund that designates money from the tax to road and bridge projects.

For more information about the bill, read the article from the Montgomery Advertiser.