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Gas tax would mean millions for Birmingham area

By Mary Sell and Caroline Beck, Alabama Daily News

MONTGOMERY, Ala. – Alabama’s more than 400 cities and towns currently share about $22 million a year from the statewide gas tax. They’ll get an additional $26 million a year under a proposed 10-cent-a-gallon increase.

Alabama’s counties now receive a combined $176.5 million; if House Bill 2 becomes law, they’ll receive an additional $80 million.

“It’s enormous,” said Greg Cochran, deputy directory of the Alabama League of Municipalities, about the potential impact of the gas tax.

That local impact was used by proponents to sell Alabama House members on the tax hike that’s expected to general $320 million a year. Representatives passed the bill on an 84-20 vote Friday evening. It moves to the Senate where at least some Republicans say they want changes.

Local impact

About 66 percent of new revenue will go to the state. But a different distribution formula means municipalities get more of the new money than they do with the current 18-cent tax. Each town and city will get a base amount $14,109, then additional money based on population.

“Some communities don’t receive $14,000 now,” Cochran said. “(The tax increase) will give small communities some money to pool for local projects.”

Birmingham, Huntsville, Montgomery and Mobile would all get more than $1 million in new money.

Rep. Neil Rafferty, D-Birmingham, voted yes for the bill after talking with some of his constituents over the past few days.

“I took a lot of time to reach out to my constituents and correct a lot of the misinformation that’s been floating out there about this bill, so I wanted to call them up and explain and clear some stuff up with them before I made a final decision,” Rafferty said.

The bill dedicates about $11.7 million a year in gas tax revenue to improvements and expansions at the Port of Mobile. The state money would be used to match even more federal dollars.

The infrastructure plan is Gov. Kay Ivey’s No. 1 priority and last week she called a special session of the Legislature in order to fast-track the bill and make it easier to pass.

House Bill 2 also place an annual fee of $200 on electric vehicles and $100 on “plug in” hybrid vehicles.

The increase would be phased in over three years and then in 2023, it could increase or decrease by one cent every two years based on construction costs.

Despite the benefits for local road and bridge coffers, Rep. David Wheeler, R-Vestavia Hills, voted against the measure because he did not like the possibility of future increases.

“There were several things that I was concerned with but the reason I voted no was because of the indexing,” Wheeler said.

Wheeler was one of several Jefferson and Shelby County Republicans voting against the bill. Reps. Jim Carns, April Weaver, Allen Farley, Matt Fridy, Arnold Mooney and Allen Treadaway each voted against the measure.

Some lawmakers and groups have advocated for a tax cut somewhere else to offset the gas tax increase.

“It is the poor and middle class that will bear the brunt of the gas tax increase,” said Phil Williams, director of policy at the institute. “Why don’t we offer them a modest reform to offset it and to show them that we care about them in the process?”

Late last month, the Alabama Republican Party passed a resolution opposing any gas tax increase.

Also in the bill are:

  • An annual allocation of at least $10 million in grants that cities and counties can apply. It’s for projects that are beyond local governments’ abilities to address, an ALDOT spokesman said.
  • A congestion relief program that will require ALDOT to develop a prioritization plan to allocate funds to increase capacity on crowded state, U.S. and interstate routes. Tony Harris, a spokesman for ALDOT, said I-565 in the Tennessee Valley is an example of a potential project.
  • An economic development roads program requiring ALDOT to develop a prioritization plan to allocate funds for economic development road projects “with priority give to projects in economically underserved areas.”

“We believe there are about a dozen counties that do not have a four-lane route to an interstate highway,” Harris said. “So we want to address that.”

  • An annual allocation between $30 million and $50 million for “projects of local interest on the state maintained highway system, which may also include local roads and bridges essential to such projects.”

The bill also says the new revenue can’t be spent on salaries, equipment or property.

This year, ALDOT had total appropriations of about $1.5 billion. About $785 million comes from state revenue; $720 million comes from federal and local sources, according to the Legislative Fiscal Office.

The bill will be in a Senate committee Monday afternoon.

How they voted

Rep. Louise Alexander, D-Bessemer: Yes

Rep. Jim Carns, R-Birmingham: No

Rep. Merika Coleman, D-Birmingham: Yes

Rep. Dickie Drake, R-Leeds: Yes

Rep. Juandalynn Givan, D-Birmingham: Yes

Rep. Rolanda Hollis, D-Birmingham: Yes

Rep. Arnold Mooney, R-Birmingham: No

Rep. Mary Moore, D- Birmingham: No

Rep. Neil Rafferty, D-Birmingham: Yes

Rep. John Rogers, D-Birmingham: No

Rep. April Weaver, R- Alabaster: No

Rep. David Wheeler, R- Vestavia Hills: No

Rep. Danny Garrett, R-Trussville: Yes

Rep. Jim Hill, R- Moody: Yes

Rep. Connie Rowe, R-Jasper: Yes

Rep. Tim Wadsworth, R-Arley: Yes

Dollars and cents

Under House Bill 2, the gas tax increase bill, municipalities would receive an additional $26 million, bringing their total to $48.7 million. Counties would receive an additional $80 million, bringing their total to $256.4 million

How much would local counties and the municipalities within them receive under the gas tax increase?


Shelby County: $2.41 million

Alabaster: $201,570

Calera: $92,768

Chelsea: $83,041

Columbiana: $42,520

Harpersville: $25,190

Helena: $127,786

Indian Springs Village: $30,105

Montevallo: $56,911

Pelham: $158,647

Vincent: $27,566

Westover: $22,740

Wilsonville: $26,476

Wilton: $18,759


Jefferson County: $6.53 million 

Adamsville: $44,720

Argo: $41,667

Bessemer: $199,967

Birmingham: $1,450,804


Brookside: $23,335

Cardiff: $14,481

Center Point: $128,652

Clay: $79,825

County Line: $15,855

Fairfield: $89,363

Fultondale: $70,835

Gardendale: $108,155

Graysville: $28,764

Helena: $127,786

Homewood: $184,471

Hoover: $566,612

Hueytown: $123,128

Irondale: $97,703

Kimberly: $32,460

Leeds: $93,804

Lipscomb: $29,069

Maytown: $15,720

Midfield: $50,426

Morris: $26,693

Mountain Brook: $152,290

Mulga: $19,786

North Johns: $15,090

Pinson: $62,597

Pleasant Grove: $82,546

Sumiton: $31,167

Sylvan Springs: $24,547

Tarrant: $57,412

Trafford: $18,482

Trussville: $149,041

Vestavia Hills: $244,488

Warrior: $35,608

West Jefferson: $16,397


St. Clair County: $1.32 million

Argo: $41,667

Ashville: $29,082

Margaret: $44,083

Moody: $93,486

Odenville: $38,337

Pell City: $100,045

Ragland: $25,204

Riverside: $29,055

Springville: $41,728

Steele: $21,169


Walker County: $1.13 million

Carbon Hill: $27,790

Cordova: $28,290

Dora: $27,817

Eldridge: $14,989

Kansas: $15,639

Jasper: $111,262

Nauvoo: $15,605

Oakman: $19,450

Parrish: $20,756

Sipsey:  $17,607

Sumiton: $31,167

Source: Alabama Department of Transportation, Association of County Commissions of Alabama




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