HB617 Summary

• Establishes a uniform motor fuel tax collection and enforcement system for compressed natural gas (CNG) and liquefied natural gas (LNG) used in motor vehicles in Alabama.

• Levies excise tax on CNG and LNG equal to the current Alabama motor fuel tax per gallon equivalent, with public sellers and fleet producers collecting and remitting taxes monthly to the Department of Revenue by the 20th of each month.

• Requires licensing of public sellers and fleet producers (minimum $25,000 surety bond) and annual registration fees ($200 for personal producers of CNG, $50-$25 registration fee for public sellers/fleet producers), with violations subject to civil penalties up to $10,000 and criminal penalties including fines up to $50,000 and imprisonment up to 5 years for felonies.

• Suspends prior decal and motor fuel tax requirements for natural gas vehicles from April 9, 2014, until October 1, 2016, extending the transition period to October 1, 2017, for establishing this comprehensive regulatory system.

• Appropriates $250,000 from the General Fund to the Department of Revenue for fiscal year 2016 to implement and administer the article, with ongoing appropriations thereafter from collected revenues.