HB394 Summary

• Imposes additional excise taxes on gasoline and diesel fuel effective October 1, 2016, calculated as the difference between the average gasoline taxes of bordering states (Georgia, Florida, Mississippi, Tennessee) and Alabama's current tax rate.

• Requires automatic recalculation of tax rates in 2019, 2023, and 2027, with adjustments taking effect unless the Legislature adopts a joint resolution to reject the adjustment.

• Prohibits local governments from levying excise taxes on gasoline or diesel fuel unless approved by referendum; allows up to 2 cents per gallon local tax if Legislature rejects state-level adjustments.

• Establishes additional annual fees of $100 for private passenger alternative fuel vehicles and $150 for commercial alternative fuel vehicles, effective January 1, 2017.

• Directs all revenue from additional excise taxes and alternative fuel vehicle fees into the Alabama Transportation Safety Fund established by SB180 (2016).