Five things you need to know about Alabama’s gas tax increase proposal

gas pump
[Photo Credit: Image by geralt on Pixabay]

Last week, Alabama Gov. Kay Ivey announced her Rebuild Alabama Infrastructure Plan that proposes raising the state’s gas tax 10-cents to pay for infrastructure improvements.

Here are the top 5 things you need to know about the proposed tax increase:

  1. Current gas tax rate: Alabama’s current state gas tax is 18 cents per gallon.
  2. Proposed gas tax rate: Ivey’s proposal includes a plan that increases a total of 10 cents over the course of three years, as follows: up 6 cents effective October 1, 2019, up another 2 cents, effective October 1, 2020, and up another 2 cents, effective October 1, 2021.
  3. Last time the gas tax increased: 1992. Since then there have been several proposals to increase the gas tax, but they’ve yet to pass the State Legislature.
  4. Number of votes needed to pass the tax in the House: Should Ivey call a special session on the gas tax, a simple majority will be needed to pass the proposal. With 105 members of the State House of Representatives, just 53 members need vote in support of it.
  5. Total cost of the proposal to the average driver: $55 a year, or $4.58 a month. That’s according to the Alabama Transportation Institute based on 12,000 annual miles and 22MPG.