AL HB540

Proposes a constitutional amendment to authorize Houston County Commission to levy an excise fee on motor fuels at a rate not to exceed $0.05 per gallon.

Fee collection shall follow the same procedures, definitions, exemptions, and enforcement methods as the state excise tax on motor fuels, with exemptions for governmental use by the state, county, municipalities, and boards of education.

Net proceeds from the excise fee shall be deposited into a special local transportation safety fund for road and bridge maintenance, improvement, replacement, and construction, with $0.02 per gallon distributed to incorporated cities and towns and the remainder to the county.

If Alabama enacts a statewide motor fuel excise fee within four years of ratification, the county rate shall be reduced to $0.02 per gallon with proceeds distributed equally between cities/towns and the county.

Prohibits incorporated cities and towns in Houston County from levying separate privilege licenses or excise taxes on motor fuels on a quantity basis, and repeals Act 82-727 of the 1982 Second Special Session upon implementation.