Pointing out that the state gas tax had not been raised since 1992, Ivey announced her Rebuild Alabama Infrastructure Plan last week, calling on lawmakers to hold a special session specifically to pass the gas the tax to fund road and bridge construction.
The Alabama House of Representatives passed it last week on a 84-20 vote.
Phased in over three years, the tax increase will raise an estimated $320 million a year for road construction, with about $12 million going to the port of Mobile. The state tax on gas and diesel fuel will raise to 24 cents a gallon from its current 18 cents a gallon rate starting in October, with an additional 2 cents per gallon increase per year on October 1st in 2020 and 2021.
In addition, the legislation also links the state fuel tax to a national highway construction cost index, allowing the tax to be adjusted up to a penny every two years, starting in 2023.