By Mary Sell and Caroline Beck, Alabama Daily News
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 83-20 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. Terri Collins, R-Decatur, said more money for local roads, and major roadways in area, was part of the reason for her support of the bill.
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.
“Our businesses will benefit from a bigger port,” Collins said.
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 1 cent every two years based on construction costs.
That indexing is a dealbreaker for Sen. Larry Stutts, R-Tuscumbia. His district includes portions of the Shoals and Lawrence County.
Sen. Tim Melson, R-Florence, said there are good things in the bill for his district, which includes portions of Lauderdale, Limestone and Madison counties. He said there could be money for the Port of Florence in a final version.
But he doesn’t like the indexing either. He said he understands the argument that without it, the state in 20 years could be in the same position it is now, needing to pass an increase. Still, he doesn’t want to sign off on an open-ended increase.
Stutts also wants a corresponding decrease in another tax on Alabamians.
“I guess my first choice is the grocery tax,” Stutts said.
The conservative Alabama Policy Institute has lobbied for a tax cut elsewhere too.
“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?”
Meanwhile, Melson said he doesn’t want to see Education Trust Fund money moved to the General Fund. That transfer isn’t in the gas tax bill, but Ivey has said she planned to fix concerns over about $63 million that’s currently diverted from ALDOT every year to fund other agencies by moving about half that amount from the separate education budget.
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, Harris 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.
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?
Lauderdale County: $1.38 million
Anderson: $16,081
Killen: $21,609
Florence: $280,271
Lexington:
Rogersville: $22,618
St. Florian: $16,904
Waterloo: $15,483
Colbert County: $1.02 million
Cherokee: $21,203
Leighton: $19,044
Littleville: $20,953
Muscle Shoals: $103,098
Sheffield: $75,296
Tuscumbia: $71,127
Franklin County: $824,040
Hodges: $16,058
Phil Campbell: $21,880
Red Bay: $35,486
Russellville: $80,651
Vina: $16,024
Lawrence County: $841,061
Courtland: $18,231
Hillsboro: $17,847
Moulton: $37,605
North Courtland: $18,387
Town Creek: $21,555
Morgan County: $1.62 million
Decatur: $391,004
Eva: $17,622
Falkville: $22,767
Hartselle: $110,605
Priceville: $31,102
Somerville: $19,010
Trinity: $28,290
Limestone County: $1.36 million
Ardmore: $22,191
Athens: $162,336
Lester: $14,860
Mooresville: $14,468
Madison County: $3.71 million
Gurley: $19,531
Huntsville: $1,233,293
Madison: $304,769
New Hope: $33,130
Owens Cross Roads: $24,405
Triana: $17,466
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
Brighton:$34,044
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
Etowah County: $1.47 million
Altoona: $20,425
Attalla: $55,049
Boaz: $78,762
Gadsden: $263,598
Glencoe: $49,038
Hokes Bluff: $43,122
Rainbow City: $79,108
Reece City: $18,529
Ridgeville: $14,867
Sardis City: $25,466
Southside: $71,052
Walnut Grove: $18,834
Source: Alabama Department of Transportation, Association of County Commissions of Alabama