County Commission | The Magazine November 2019 | Page 40
PAID ADVERTISEMENT
ͳǤͺͲͲǤʹʹ͵Ǥʹ͵ͳ
ǤǤ
REBUILD ALABAMA ACT FINANCING FACTS FOR COUNTIES AND CITIES
Summary of the Rebuild Alabama Act
Revenue Measures
➢ Fuel Tax Increase – The state gasoline and diesel tax will be increased by 6 cents per gallon on September 1,
2019, 2 cents per gallon on October 1, 2020, and 2 cents per gallon on October 1, 2021.
o $32.3 million – Estimated revenue collected by each 1-cent in the fuel tax
o $323 million – Estimated total revenue collected once the fuel tax is fully implemented
o Revenues are to be distributed as follows:
▪ First $980,000 collected each month ($11.76 million annually) shall be distributed to the Alabama Highway
Finance Corporation for the payment of the principal of and interest on bonds to be issued by it to finance
improvements to the ship channel providing access to the facilities of the Alabama State Docks. This
diversion is not perpetual and will end once the bonds are paid off.
▪ Then, remaining funds shall be distributed as follows:
• 66.67% to ALDOT, 25% to the Counties, and 8.33% to the Municipalities.
➢ Electric and Hybrid Vehicle Fees – Electric vehicles (EVs) will now pay an annual registration fee. Battery electric
vehicles (BEVs) will pay $200, and plug-in hybrid electric vehicles (PHEVs) will pay $100.
o Revenue collected for EVs will be distributed as follows:
▪ 25% will be dedicated to support an EV infrastructure grant program that will provide funding to pay for a
portion of the costs of developing EV charging station infrastructure.
▪ 75% of the total revenue from the new BEV and PHEV fees will be distributed as follows:
• 66.67% to ALDOT, 25% to the Counties, and 8.33% to the Municipalities.
Local Government Fuel Tax Revenue Distribution
➢ County Fuel Tax Revenue Distribution – County governments will receive 25% of the total fuel tax revenues from
the new 10-cent per gallon fuel tax, after costs of collection and distributions to the Alabama Highway Finance
Corporation to finance State Docks improvements. This allocation will be distributed to the counties as follows:
o 45% of the amount shall be allocated equally among the 67 counties of the state.
o 55% of the amount shall be allocated among the 67 counties of the state on the basis of the ratio of the
population of the state according to population projections from the U.S. Census Bureau Population and Housing
Estimates Program and will be updated every five years.
➢ Municipality Fuel Tax Revenue Distribution – Municipal governments will receive 8.33% of the total fuel tax
revenues from the new 10-cent per gallon fuel tax, after costs of collection and distributions to the Alabama Highway
Finance Corporation to finance State Docks improvements. This allocation will be distributed to the municipalities as
follows:
o 25% of the amount shall be allocated equally among all municipalities in the state.
o 75% of the amount shall be allocated among the municipalities of the state on the basis of the ratio of the
population of each municipality to the total population of all municipalities of the state according to population
projections from the U.S. Census Bureau Population and Housing Estimates Program and will be updated every
five years.