Gas Tax Increases Today

Gas Tax Increases Today

By Zach Hester, Reporter •

ALABAMA — The second increase to Alabama's gas tax goes into effect today, October 1.

As previously reported, last year the Alabama Legislature passed and Governor Kay Ivey (R-Ala.) signed into law the Rebuild Alabama Act, raising the tax on gasoline statewide for the first time since 1992. The bill passed the Alabama House of Representatives by a 84-20 margin and the Alabama Senate by a margin of 28-6.

The Rebuild Alabama Act is set to raise the fuel tax by a total of ten cents per gallon from 2019 to 2021, followed by adjustments every year after 2023 according to the National Highway Cost Index.

Last September, the gas tax was raised by six cents per gallon, followed by a two-cent increase today, and another two-cent increase next October. The Alabama gas tax now stands at 26-cents per gallon.

The Rebuild Alabama project is estimated to bring in an estimated $300 million in revenue by 2021 to be used on infrastructure projects.

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