Get ready to pay – more at the pump, that is.
The first phase of Alabama’s 10-cent excise tax on gasoline and diesel fuel – is scheduled to go into effect Sunday, September 1st (2019). That’s when gas prices across the state will increase by six-cents a gallon – bringing Bama’s tax rate to 24 cents per gallon for gasoline and 25 cents per gallon for diesel.
During this week’s GOP meeting in Centre, Representative Ginny Shaver discussed that new increase, and grappling with the decision on whether to support the move:
The next increase is due to take effect October 1st of 2020, with an additional two-cents per gallon on gasoline and diesel – following that another two-cents per gallon will be levied on October 1st of 2021. Then, effective October 1st of 2023, and on July 1st of every year after that, the gasoline and diesel excise tax rate will be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index with that being rounded to the nearest whole cent.
That increase or the decrease of the excise tax will not exceed one cent per gallon according to the legislation. Each penny of the tax is expected to be worth $32 million in new revenue with the proceeds going mostly to road and bridge projects across the state.
Representative Shaver added during the local GOP meeting – additional sources of revenue are available, and she pointed out that Cherokee County, especially, stands to come out well in regard to seeing a healthy return on their investment:
This increase marks the first change in Alabama’s gas tax since 1992.
Alabama Governor Kay Ivey said every dollar from the gas tax will be scrutinized, to ensure that it is used appropriately – calling the money “an investment in the state’s future.”
(Information provided in part by AL.COM/www.al.com)