HB560 By Representative McCutcheon RFD Transportation, Utilities and Infrastructure Rd 1 19-APR-16

SYNOPSIS: This bill would propose a constitutional amendment to provide for additional gasoline and diesel fuel excise taxes 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 prohibit the passage of a local law levying an excise tax on gasoline or diesel fuel by a county, except under certain conditions.

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 for specific purposes.

A BILL TO BE ENTITLED AN ACT

To propose a constitutional amendment to the Constitution of Alabama of 1901, as amended, to provide for additional gasoline and diesel fuel excise taxes; to provide for the distribution of the revenue from the additional taxes; to prohibit the passage of a local law levying an excise tax on gasoline or diesel fuel by a county, 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. The following amendment to the Constitution of Alabama of 1901, as amended, is proposed and shall become valid as a part thereof when approved by a majority of the qualified electors voting thereon and in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, as amended:

PROPOSED AMENDMENT

Section 1. (a) For the purposes of this amendment, 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 as calculated by the department.

(3) DEPARTMENT. The Department of Revenue.

(b)(1) Effective October 1, 2016, and in addition to any other taxes provided by law, there shall be additional excise taxes imposed on gasoline and diesel fuel in an amount equal to six cents ($0.06) per gallon.

(2) The additional gasoline and diesel fuel excise taxes imposed under this amendment shall be collected as provided in Section 40-17-326, 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.

(c) Effective October 1 in 2019, 2023, and 2027, 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 (d).

(d) No later than February 1 in 2019, 2023, and 2027, 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, and shall notify the Senate Pro Tempore and Speaker of the House of Representatives of the recalculated rates on the first day of the next Regular Session.

(e)(1) In the event an upward or downward adjustment of the gasoline and diesel fuel excise taxes imposed in subsection (c) is warranted by the department's recalculation, any change in the 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.

(2) 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.

(3) Any additional gasoline and diesel fuel excise taxes imposed under subsection (c) shall be collected as provided in Section 40-17-326, 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.

Section 2. (a) The Legislature shall not enact any local law authorizing the levy of a local excise tax on gasoline or diesel fuel by a county on or after the ratification of this amendment, 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) The Legislature may enact a local law authorizing the levy of a local excise tax on gasoline or diesel fuel by a municipality on or after the ratification of this amendment.

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 annual fee, levied by this section, for each commercial vehicle, registered pursuant to Section 32-6-56, shall be prorated based on the percentage of miles in which the fleet operated in Alabama. 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 solely on natural gas or any energy source other than gasoline or diesel fuel or operates pursuant to any technology of powering an engine that does not involve petroleum, which includes, but is not limited to, an 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).

END OF PROPOSED AMENDMENT.

Section 2. An election upon the proposed amendment shall be held in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state.

Section 3. The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment:

"Proposing an amendment to the Constitution of Alabama of 1901, to provide for additional gasoline and diesel fuel excise taxes; to provide for the distribution of the revenue from the additional taxes; to prohibit the passage of a local law levying an excise tax on gasoline or diesel fuel by a county, except under certain conditions; and to provide additional fees for private passenger alternative fuel vehicles and commercial alternative fuel vehicles.

"Proposed by Act ________."

This description shall be followed by the following language: