SB386 By Senators Orr and Livingston RFD Governmental Affairs Rd 1 20-APR-17

SYNOPSIS: This bill would allow a county commission to call for a local referendum to authorize the commission to levy an excise tax on gasoline or motor fuel not to exceed five cents ($.05) per gallon for specific road and bridge projects identified by the county prior to the referendum. The resolution calling for a referendum would specify the amount of the levy and the duration of the levy which could not exceed five years. Subsequent local referendums on additional levies would be authorized under the same procedures as the original referendum.

A BILL TO BE ENTITLED AN ACT

Relating to gasoline and motor fuel taxation; to authorize a county commission to call for a referendum on the levy of an excise tax on gasoline and motor fuel not to exceed five cents ($.05) per gallon for specific road and bridge projects identified by the county prior to the referendum; to provide that the excise tax could only be in effect for a period not to exceed five years; and to provide for subsequent local referendums asking that new levies be authorized.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. For the purposes of this act, the following terms shall have the following meanings:

(1) DISTRIBUTOR. The term as defined in Section 40-17-322, Code of Alabama 1975.

(2) MOTOR FUEL. Gasoline, blended fuel, and diesel fuel as those terms are defined in Section 40-17-322, Code of Alabama 1975.

(3) PERSON. Any individual, corporation, partnership, or other entity.

(4) PROJECT LIST. A list of road or bridge projects, or both, designated by the county commission to be funded by the proceeds of the county excise tax on gasoline and motor fuels authorized under this act.

(5) PUBLIC TRANSPORTATION. Public transit using roads, rail, high speed rail, airports, or waterways.

(6) STORER. Any person who ships, causes to be shipped, or receives in any quantities, stores in any manner and withdraws or uses gasoline or motor fuel for any purpose.

Section 2. (a) The county commission, by resolution, may call for a local referendum on the question of whether to authorize the county commission to levy a county excise tax on gasoline and motor fuels under the terms and conditions and for the purposes set out in this act. The resolution shall be adopted by affirmative vote of a majority of the members of the county commission at a regular meeting of the county commission, and shall include the proposed levy amount, which may not exceed five cents ($.05) per gallon and, the duration, which may not be for a period more than five years from the date of levy.

(b) Prior to the adoption of a resolution calling for a local referendum as provided in subsection (a), the county commission shall compile a project list of the local transportation projects that will be funded with the proceeds of a county excise tax on gasoline and motor fuels levied pursuant to this act. The project list may include public transportation projects and projects within the corporate limits of one or more of the municipalities within the county. The project list shall be based on an estimate of revenues anticipated from the tax levy and the estimated cost of each project considered for inclusion in the project list. The total estimated cost anticipated under the final project list shall not equal more than 120 percent of the estimated revenues anticipated from the levy. The county commission shall consider the needs of each district in the county in determining what projects to include on the project list and shall approve the project list by affirmative vote of a majority of the members of the county commission at the same time it adopts the resolution required in subsection (a).

(c) The project list may not be altered after it is adopted. No funds collected from the tax authorized herein may be allocated to projects other than those included in the project list of the county until and unless all such projects are completed. Notwithstanding the foregoing, in the event of a state of emergency declared by the Governor, funds may be utilized to repair damage to a road or bridge directly resulting from the event for which the state of emergency was declared. If the referendum passes, the project list shall be posted at all times in conspicuous places at the county courthouse, the county commission office, the county highway department, and any other places deemed appropriate by the county commission. If the referendum fails, the posting requirement shall no longer apply.

(d) If the county commission adopts the resolution required for calling a local referendum, the resolution shall be forwarded to the judge of probate at least 60 days prior to the next primary or general election in the county with a request that the local referendum be placed on the ballot for that election. The referendum shall be held only in conjunction with a primary or general election in the county and shall be conducted in accordance with the election laws of the state. The following language shall be included on the ballot:

"Do you authorize the _______ County Commission to levy for a period of _____ (insert time period) a ____ cents per gallon county excise tax on gasoline and motor fuels to provide funding for road and bridge projects itemized by the county commission on a project list adopted by the _______ County Commission on (insert date)?

"____Yes ____No."

Section 3. If the voters in the county approve the local referendum authorizing the county commission to levy a county excise tax on gasoline and motor fuels as provided in Section 2, the county commission may levy an excise tax on persons selling, distributing, storing, or withdrawing from storage for any purpose whatever, gasoline or motor fuel within the county at the rate and for the time period specified in the resolution. The county commission, applying all procedures set out in Section 2, may call for subsequent local referendums on the question of new levies. No levy pursuant to this act shall total in excess of five cents ($.05) or continue more than five years from the date of the levy.

Section 4. The county commission shall require every distributor, retail dealer, or storer of gasoline or diesel fuel to pay the tax on the selling, distributing, or withdrawing from storage gasoline and diesel fuel in the county for any purpose or use. It is the intent of this act that the tax be collected by the distributor. The distributor shall collect and pay the tax on the basis of distributions. If the tax levied under this act has been collected and paid by a distributor, that payment shall be sufficient, the intention being that the tax shall be paid once. If the tax has not been collected and paid by the distributor, the retail dealer or storer shall be liable for the tax if gasoline or diesel fuel is sold or withdrawn from storage in the county. A retail dealer paying the tax herein provided shall pay the tax on the basis of sales and a storer shall pay the tax on the basis of withdrawals from storage.

Section 5. The county commission shall provide for the administration and collection of the tax subject to the provisions of this act. The county commission may establish civil penalties for failure to comply with this act and otherwise provide for the enforcement of this act.

Section 6. The following shall be exempt from the tax:

(1) Motor fuel used in governmental functions by the federal government or any agency of the federal government, the state or any agency of the state, county governing agencies, municipalities, and boards of education.

(2) Motor fuel sold in interstate commerce.

(3) Dyed diesel fuel as defined in Section 40-17-332, Code of Alabama 1975, except dyed diesel fuel used to operate a highway vehicle by a nonexempt person or entity.

(4) Aviation fuel.

(5) A refinery that uses motor fuel in the refinery process.

(6) A person who holds a federal permit to blend motor fuels under federal law who pays a federal excise tax on motor fuels directly to the federal government when the person uses gasoline in this state in the blending process.

Section 7. The county commission may administer and collect the tax; contract for the collection of the tax as authorized in Section 11-3-11.2, Code of Alabama 1975; or contract with the Department of Revenue to administer and collect the excise tax pursuant to Section 11-3-11.3, Code of Alabama 1975. Any county commission that elects to administer and collect, or contract for the collection of, the excise tax shall have the same rights, remedies, power, and authority, including the right to adopt and implement the same procedures, as would be available to the Department of Revenue if the excise tax was being administered, enforced, and collected by the department.

Section 8. (a) The proceeds of any taxes imposed under authority of this act shall be deposited into a special local transportation safety fund to be expended for the maintenance, improvement, replacement, and construction of county-maintained roads and bridges, for public transportation purposes, or, roads and bridges maintained by a municipality with the consent of the municipality. All records shall be audited by the Office of Examiners of Public Accounts in the same manner as all other county funds.

(b) The county commission shall be the awarding authority for all projects funded by the proceeds of the tax levied pursuant to this act. All contracts shall be awarded to licensed contractors authorized to work in the state for road or bridge maintenance, improvement, replacement, or construction projects. All contracts shall be bid, awarded, and executed pursuant to Title 39, Code of Alabama 1975.

(c) No more than 30 percent of the proceeds of the excise tax authorized in this act may be used to purchase necessary materials for projects to be performed by county work forces. The county shall not use proceeds of any excise tax levied pursuant to this act on salaries, benefits, or any other form of compensation for county employees or officials or for the purchase, lease, or maintenance of equipment.

(d) All projects funded from the proceeds of the excise tax authorized in this act for road or bridge maintenance, improvement, replacement, or construction on roads or bridges with less than 2,500 average daily traffic shall be designed in a manner consistent with the standards for low volume roads as established in the County Road Design Policy for Low Volume Roads adopted by the Department of Transportation. All projects for roads and bridges which have greater than 2,500 average daily traffic shall be designed in a manner consistent with the most current edition of the Department of Transportation Standards and Specifications for Roadway Constructions.

Section 9. The county engineer shall provide to the county commission an annual report detailing expenditures made from the local transportation safety fund and the status of each project included on the project list. The written report covering the previous fiscal year shall be submitted no later than the first regular county commission meeting in January of each year and shall be made available to the public for inspection, including posting on the county's website, if available. The report shall also be forwarded to the Association of County Commissions of Alabama, which shall be responsible for posting all such reports on its website.

Section 10. All laws or parts of laws which conflict with this act are repealed to the extent of the conflict; provided, however, that nothing in this act shall be construed to repeal, modify, or supersede any other provisions of general or local law providing county funding for county road and bridge projects.

Section 11. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Taxation

Counties

County Commissions

Gasoline Tax

Highways, Roads, and Bridges

Elections

Motor Vehicles

Petroleum Products

Gasoline