Alabama Senate overwhelmingly approves Kay Ivey’s 10-cent gas tax hike

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Alabama Gas Tax
[Photo Credit: Alabama Today]

Gov. Kay Ivey‘s proposed 10-cent per gallon gas tax increase flew through the Alabama Senate this week on the legislative fast track. The full chamber approved the House-passed version of the Tuesday afternoon, 28-6.

Anniston-Republican, Senate President Pro Tempore Del Marsh released the following statement following the approval of the legislation

Over the last ten years we have seen unprecedented growth in Alabama. Median income is up 20%, unemployment is at an all-time low. We have dramatically reduced the size of state government, we have over 6,000 fewer state employees today than we did eight years ago which equates to a 15% reduction. However, in this time, our infrastructure has lagged behind and every one agreed that something needed to be done.

This bill was passed the correct way. Over the past year my office alone has held over 30 open meetings with legislators, and all interested stakeholders. All voices were heard and nothing was rushed.

I want to thank the body for adopting strict oversight and accountability measures. Because of this, there is no doubt that going forward the money which is supposed to be used for infrastructure will be used for road, bridge and port improvements. As a fiscal conservative, it would have been impossible to support any type of revenue measure in the infrastructure package without the oversight and accountability laid out in this bill.

I thank the Senate for their support, Sen. Chambliss and Rep. Poole for their leadership on this issue and Governor Ivey for taking this issue head on. This infrastructure package will drive industry in Alabama for years to come and ensure that we continue the strong economic growth that we have enjoyed over the past few years by making sure that we are competitive on the world stage when it comes to recruiting jobs.

The plan’s 10-cent increase will be phased in over the next three years: up 6 cents effective Sept. 1, 2019, up another 2 cents, effective October 1, 2020, and up another 2 cents, effective October 1, 2021. It is estimated that it will raise $320 million a year for road construction and maintenance

Ivey is expected to sign the bill into law later today, marking the first time the gas tax has been raised since 1992.