HB394 By Representative McCutcheon RFD Transportation, Utilities and Infrastructure Rd 1 15-MAR-16

SYNOPSIS: This bill would provide for additional gasoline and diesel fuel excise taxes and would provide for an adjustment to the gasoline and diesel fuel excise tax rates effective in 2019 and again in 2023 and 2027, unless the Legislature adopts a resolution that the adjustment not take place, to bring the excise taxes in line with the average gasoline taxes and fees levied in the four states bordering Alabama. The revenue from the additional taxes would be paid into the Alabama Transportation Safety Fund established in SB180, 2016 Regular Session, and would be expended only as authorized in that act.

This bill would also prohibit the passage of a local law levying an excise tax on gasoline or diesel fuel unless approved by a local referendum and would allow a local governing body to hold a local referendum on levying a local excise tax on gasoline or diesel fuel at no more than 2 cents per gallon if the Legislature adopts a resolution rejecting an adjustment of the state levy under procedures in the act, with any proceeds from an approved local excise tax paid into a separate fund and expended only as authorized in the Alabama Transportation Safety Fund.

This bill would also provide additional fees for private passenger alternative fuel vehicles and commercial alternative fuel vehicles and would require that the fees be paid into the Alabama Transportation Safety Fund and expended only as authorized in that act.

A BILL TO BE ENTITLED AN ACT

To amend Section 40-17-325, Code of Alabama 1975, as last amended by Act 2015-54, 2015 Regular Session, relating to gasoline and diesel fuel taxes, to provide for an additional gasoline and diesel fuel taxes; to provide for an adjustment of the additional gasoline and diesel fuel tax rate at certain times if certain criteria are met; to provide for the additional gasoline and diesel fuel taxes to be based upon the difference between the Border States Average Gasoline Tax and the Alabama Tax on Gasoline; to prohibit the enactment of local taxes on gasoline or diesel fuel except under certain conditions; and to provide additional fees for private passenger alternative fuel vehicles and commercial alternative fuel vehicles.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-17-325, Code of Alabama 1975, as last amended by Act 2015-54, 2015 Regular Session, is amended to read as follows:

§40-17-325.

"(a) Subject to the exemptions provided for in this article, the tax is imposed on net gallons of motor fuel according to Section 40-17-326 at the following rates:

"(1) Eighteen cents ($.18) per gallon on gasoline, which is comprised of a seven cents ($.07) excise tax, a supplemental five cents ($.05) excise tax, and an additional six cent ($.06) excise tax.

"(2) Nineteen cents ($.19) per gallon on diesel fuel, comprised of a thirteen cents ($.13) excise tax and an additional six cents ($.06) excise tax.

"(3) Nine and one-half cents per gallon ($.095) on aviation gasoline and three and one-half cents per gallon ($.035) on aviation jet fuel when the aviation fuel is sold to a licensed aviation fuel purchaser. Aviation gasoline is to be taxed as gasoline and aviation jet fuel is to be taxed as diesel fuel when not sold to a licensed aviation fuel purchaser.

"(b) The motor fuel subject to the excise tax levied by this section shall not be subject to any other excise tax levied by this state.

"However, the payment of the motor fuel excise tax levied by this section shall not exempt the seller or importer of fuel from the license fees levied by Section 40-17-174.

"(c) For the purposes of this section, the following terms shall have the following meanings:

"(1) ALABAMA TAX ON GASOLINE. The Total State Excise Taxes/Fees on Gasoline most recently reported by the American Petroleum Institute for Alabama.

"(2) BORDER STATES AVERAGE GASOLINE TAX. The average of the Total State Excise Taxes/Fees on Gasoline most recently reported by the American Petroleum Institute for Georgia, Florida, Mississippi, and Tennessee.

"(d)(1) Effective October 1, 2016, there shall be additional excise taxes imposed on gasoline and diesel fuel in an amount equal to the difference between the Border States Average Gasoline Tax and the Alabama Tax on Gasoline as determined under the procedures set out in subsection (e).

"(2) The additional gasoline and diesel fuel excise taxes imposed under the act adding this amendatory language shall be collected as provided in Section 40-17-326 and paid into the Alabama Transportation Safety Fund established in SB180, 2016 Regular Session, and distributed and expended only as provided in that act.

"(e)(1) No later than July 1, 2016, the department shall calculate the Border States Average Gasoline Tax and the difference between the Border States Average Gasoline Tax and the Alabama Tax on Gasoline, rounded to the nearest penny.

"(2) No later than August 1, 2016, the department shall notify the licensees responsible for collection and payment of these excise taxes pursuant to Section 40-17-326 of the rate of any additional gasoline and diesel fuel excise taxes as established herein.

"(3) The licensees shall begin collecting and paying the gasoline and diesel fuel excise taxes at the new rates on October 1, 2016.

"(f)(1) No later than February 1 in 2019, 2023, and 2027, the department shall recalculate the Border States Average Gasoline Tax and the difference between the Border States Average Gasoline Tax and the Alabama Tax on Gasoline, rounded to the nearest penny, and shall notify the Senate Pro Tempore and Speaker of the House of the recalculated rates on the first day of the next Regular Session.

"(2) In the event an upward or downward adjustment of the gasoline and diesel fuel excise taxes imposed in subsection (d) is warranted by the department’s recalculation, any change in rate of the gasoline and diesel fuel excise taxes shall take effect on October 1, 2019, unless during the 2019 Regular Session of the Legislature, a joint resolution is adopted by the Legislature to continue imposing the rate of gasoline and diesel fuel excise taxes at the rate effective October 1, 2016.

"(3) The process for recalculation by the department set out in this subsection shall be repeated in 2023 and 2027, and any upward or downward adjustment in gasoline and diesel fuel excise taxes warranted by the department’s recalculation shall take effect on the following October 1, unless a joint resolution is adopted by the Legislature during the Regular Session of 2023 or 2027 to continue imposing the rate of gasoline and diesel fuel excise taxes in effect at the time the resolution is adopted. After October 1, 2027, no further adjustments in the gasoline and diesel fuel excise taxes shall take effect, except by separate act of the Legislature.

"(g) Any additional gasoline and diesel fuel excise taxes imposed pursuant to the act adding this amendatory language shall be collected as provided in Section 40-17-326 and paid into the Alabama Transportation Safety Fund established in SB180, 2016 Regular Session and distributed and expended only as provided in that act."

Section 2. (a) Except as otherwise provided in this section, the Legislature shall not enact any local law authorizing the levy of a local excise tax on gasoline or diesel fuel on and after the effective date of this act, unless the authority to levy is approved by a majority of qualified electors in a referendum conducted in accordance with the election laws of the state and held in conjunction with a scheduled primary or general election or in conjunction with a special election held for another purpose in the jurisdiction.

(b) If the legislature adopts a joint resolution to not adjust the gasoline or diesel fuel tax rate following the recalculation of the Border States Average Gasoline Tax as provided in Section 40-17-325(f), Code of Alabama 1975, the local governing body may place the question of the authority to levy a local gasoline or diesel fuel excise tax not to exceed two cents ($0.02) per gallon on the next general election ballot for statewide offices.

(c) If the authority to levy a local gasoline or diesel fuel excise tax is approved by such referendum, the resulting revenue shall be deposited by the local government into a separate fund and expended only for projects authorized in Section 4 of SB180, 2016 Regular Session, and all expenditures shall be subject to the requirements and restrictions of Section 4 of that act.

Section 3. (a) Effective January 1, 2017, in addition to any other license tax or registration fee levied pursuant to Chapter 6, Title 32 or Chapter 12, Title 40, Code of Alabama 1975, there shall be an additional annual fee of one hundred dollars ($100) for each private passenger alternative fuel vehicle and an additional annual fee of one hundred fifty dollars ($150) for each commercial alternative fuel vehicle. The additional fee levied herein shall be collected pursuant to Chapter 12, Title 40, Code of Alabama 1975, and paid into the Alabama Transportation Safety Fund established in SB180, 2016 Regular Session, and distributed and expended only as provided in that act.

(b) For the purposes of this section, the following terms shall have the following meanings:

(1) ALTERNATIVE FUEL VEHICLE. A vehicle that runs on natural gas or any fuel other than gasoline or diesel fuel or operates pursuant to any technology of powering an engine that does not involve solely petroleum; which includes, but is not limited to, an electric vehicle, hybrid electric vehicle, or solar powered vehicle. The term does not include any vehicle that is not registered for operation on public roads or highways.

(2) COMMERCIAL ALTERNATIVE FUEL VEHICLE. A commercial motor vehicle as defined in Section 32-6-49.3, Code of Alabama 1975, that runs or operates on one of the methods described in subdivision (1).

(3) PASSENGER ALTERNATIVE FUEL VEHICLE. A private passenger automobile as defined in Section 40-12-240(18), Code of Alabama 1975, that runs or operates on one of the methods described in subdivision (1).

Section 4. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law, and shall only be implemented upon the passage of SB180, 2016 Regular Session.

Taxation

Gasoline Tax

Motor Fuel

Motor Vehicles

Revenue Department

Code Amended