Tag: taxes

THE GAS TAX IS MORE THAN 10 CENTS!

HERE’S WHAT YOU NEED TO KNOW

Eagle Forum always advocates budget reforms rather than tax increases.   A gas tax increase is especially burdensome on those with low or fixed incomes, but it raises the cost of living for everyone in our state.

The bill sponsors promised during floor procedures to allow amendments that could lighten the tax burden to be brought up and debated during the regular session which resumes next week.  We will be monitoring these possible changes and provide timely updates. 
 

IT WILL BE PHASED IN OVER A THREE-YEAR PERIOD

Beginning on October 1st, 2019, consumers will begin paying an extra $0.06/gallon.  The next year it will increase by $0.02/gallon and the following year another $0.02/gallon.  By 2023 consumers will be paying a total of $0.10/gallon tax.

ADDITIONAL TAXES YOU NEED TO BE AWARE OF (“INDEXING”)

Beginning on October 1, 2023, and on June 1 every other year thereafter an additional $0.01 tax per gallon will be added IF the National Highway Construction Cost Index (NHCCI) goes up.  If the Index stays the same the $0.01 tax will not be added that year.  If the Index goes down there is a possibility that the tax could decrease by $0.01.  Historical data shows the Index usually increases unless there is a recession.   

NEW ANNUAL REGISTRATION FEES YOU NEED TO BE AWARE OF

Plug-in hybrid electric vehicle: $100.00

Battery electric vehicle: $200. 00 

Every fourth year beginning July 1, 2023, there will be a $3.00 increase in these fees.

HOW THE MONEY WILL BE DISTRIBUTED

Money collected from this new tax will be distributed as follows: Alabama Department of Transportation: 66.67%, Counties: 25%, Municipalities 8.33%

SEE HOW YOUR LEGISLATORS VOTED:

Alabama House of Representatives  Scroll down to “Roll 18” on the right side; click that to see how the Representatives voted.

Alabama Senate  Scroll down to “Roll 28” on the right side; click that to see how the Senate voted. 
 
We encourage the legislature to find ways to cut spending on non-essential programs to counter this tax increase.  We encourage Alabama taxpayers to contact their legislators with recommendations for cuts. 

Better Policy Alternatives Available Than Fiscally Irresponsible SB302 and HB487

Eagle Forum of Alabama finds that SB302 and HB487 are bad policy and will not properly address important public policy issues within Alabama’s prisons and infrastructure.

In the last two weeks of the Alabama legislative session, there are two bills that will have profound and lasting effects on the pocketbooks of Alabama taxpayers. The gas tax (HB487), if passed, would be a $300 million tax increase—the largest tax increase in Alabama in modern times. The other (SB302) is the prison bill. We need to address both the prison and infrastructure issues realistically with pay as we go measures that require transparency, accountability, and a vote of the people.

Instead, the legislature is about to be asked to pass (1)The $2.4 billion bond issue for transportation and (2) the now $845 million prison bill.  These two measures together equal at least a 50% increase in state indebtedness.

First, on Tuesday a SUBSTITUTE VERSION of Gov. Bentley’s PRISON BILL that increases bonding from $800 million to $845 million is being dropped in committee. It has NOT been posted.  See Eagle Forum’s prior analysis here.  Does the bill address the immediate need of medical care and mental health care? Are competitive bids required?  Will prisons be moved from communities that now depend on them for employment? Does new construction now address overcrowding?  Citizens won’t know if objections that stalled Gov. Bentley’s plan have been alleviated until after the committee vote, but it is certain that the cost has been increased, not cut.  Therefore, Alabama taxpayers would be saddled with an ultimate cost of well over $1.5 billion over at least 30 years.  See prison recommendations here.

Second, the Alabama Legislature is considering the largest tax increase in modern history in the form of a transportation bill that calls for $2.4 billion in highway bonds without a vote of the people.  This can accurately be called the largest tax increase on Alabamians in modern history because it amounts to $300 million a year in perpetuity.  There is no sunset.

Thankfully, the Speaker of the House has assured the people of Alabama that the gas tax (HB487) would not come back up this session.  Please thank Speaker McCutcheon for his commitment and ask him to continue to resist attempts to ram HB487 through.  There are sound alternatives being proposed for future action.

Please contact your state representatives to let them know that you do NOT support the gigantic bond issues for prisons or roads.  Ask them to look at sound alternatives!