SB11INTRODUCED
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SB11
XARHZZE-1
By Senator Coleman-Madison
RFD: Finance and Taxation General Fund
First Read: 04-Feb-25
PFD: 24-Sep-24
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6 XARHZZE-1 08/27/2024 JRF (F)JRF 2024-2398
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PFD: 24-Sep-24
SYNOPSIS:
This bill provides for an additional license tax
and registration fee on motor vehicles and for the
distribution of the proceeds to the Alabama Public
Transportation Trust Fund.
A BILL
TO BE ENTITLED
AN ACT
Relating to license taxes and registration fees to
amend Section 40-12-242, Code of Alabama 1975; to levy an
additional license tax and registration fee; and to provide
for the distribution of the proceeds to the Alabama Public
Transportation Trust Fund.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-12-242, Code of Alabama 1975, is
amended to read as follows:
"ยง40-12-242
(a) The following annual license taxes and registration
fees are hereby imposed and shall be charged on each private
passenger automobile operated on the public highways of this
state and on each motorcycle operated on the public highways:
(1) For each private passenger automobile.....$13.00
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(1) For each private passenger automobile.....$13.00
(2) For each motorcycle........................$7.00
No private passenger automobile and no motorcycle shall
be used on any public highway in the state unless the proper
license tag therefor has been procured and is securely
attached to the rear end thereof, the tag to be attached right
side up with the number thereof in an upright position and
plainly visible.
(b)(1) In addition to the annual license taxes and
registration fees imposed in subsection (a) and in this
article, there is hereby imposed and shall be charged:
a. An annual license tax and registration fee of
$200.00 on each battery electric vehicle operated on the
public highways of this state; and
b. An annual license tax and registration fee of
$100.00 on each plug-in hybrid electric vehicle operated on
the public highways of this state.
(2)a. A battery electric vehicle is defined as any
motor vehicle which draws propulsion energy solely or
primarily from onboard sources of stored electric energy from
a plug-in rechargeable electric energy storage system and
which does not include an internal combustion or heat engine
using combustible fuel.
b. A plug-in hybrid electric vehicle is defined as any
motor vehicle which draws propulsion energy from onboard
sources of stored electric energy that can be plugged into an
outlet or charging station, and which includes an internal
combustion or heat engine using combustible fuel.
(c) Beginning on July 1, 2023 and every fourth year
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(c) Beginning on July 1, 2023 and every fourth year
thereafter, the additional license tax and registration fee
specified in subsection (b) shall increase by three dollars
($3).
(d) The annual battery electric vehicle fee imposed in
subdivision (b)(1) shall be reduced by the amount of any
future additional annual federal surcharge or registration fee
placed on a battery electric vehicle, and the annual plug-in
hybrid electric vehicle fee imposed in subdivision (b)(1)
shall be reduced by the amount of any future annual federal
surcharge or registration fee placed on a plug-in hybrid
electric vehicle, if the federal surcharge or registration fee
is used solely for highway transportation purposes in the
State of Alabama, but in no case shall the battery electric
vehicle fee be reduced to less than $150 and the plug-in
hybrid electric vehicle fee be reduced to less than $75.
(e) The Electric Transportation Infrastructure Grant
Program is created within the State Department of
Transportation. The program shall be administered, conducted,
and managed, and its funds shall be disbursed by, the State
Department of Transportation, which shall have all the powers,
authorities, rights, privileges, and titles necessary to
enable it to accomplish the purpose of the Electric
Transportation Infrastructure Grant Program. The State
Department of Transportation is authorized and directed to
adopt rules for the Electric Transportation Infrastructure
Grant Program including the solicitation, application,
evaluation, and selection of grant applicants, the
distribution of grants for electric vehicle charging
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distribution of grants for electric vehicle charging
infrastructure, and the use of grant funds through the Alabama
Administrative Procedure Act.
(f) Notwithstanding any other law to the contrary, all
proceeds of the annual license taxes and registration fees
imposed and charged in subsection (b), after deduction
pursuant to Section 40-12-269 (a)(1), shall be distributed as
follows:
(1) The first one hundred fifty dollars ($150)
collected from the annual license tax and registration fee on
each battery electric vehicle and the first seventy-five
dollars ($75) collected from the annual license tax and
registration fee on each plug-in hybrid electric vehicle shall
be distributed sixty-six and sixty-seven one hundreths percent
(66.67%) to the state, twenty-five percent (25%) to counties,
and eight and thirty-three one hundreths percent (8.33%) to
municipalities.
(2) The remainder shall be deposited in the Rebuild
Alabama Fund established in Section 23-8-4, and shall be used
by the State Department of Transportation to fund electric
vehicle transportation charging infrastructure through the
Electric Transportation Infrastructure Grant Program
established in subsection (e) until such time as the total
annual registrations of battery electric vehicles plus plug-in
hybrid electric vehicle exceed four percent (4%) of the total
annual registrations of all motor vehicles within the State of
Alabama, except trailers and semitrailers, for which an annual
license tax and registration fee is paid. Thereafter, the
annual license taxes and registration fees imposed by
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annual license taxes and registration fees imposed by
subdivision (b)(1) shall be reduced to one hundred fifty
dollars ($150) and seventy-five dollars ($75), respectively,
and after such reduction the receipts shall be deposited into
the Rebuild Alabama Fund and distributed sixty-six and
sixty-seven one hundreths percent (66.67%) to the state,
twenty-five percent (25%) to the counties, and eight and
thirty-three one hundreths percent (8.33%) to the
municipalities to be used in the construction, reconstruction,
maintenance, and repair of public roads, highways, and bridges
in the state, and for any other purpose for which moneys in
the Rebuild Alabama Fund may be lawfully used. All previously
collected but unspent funds dedicated to the Electric
Transportation Infrastructure Grant Program shall continue to
be used to fund the Electric Transportation Infrastructure
Grant Program.
(g) The annual license taxes and registration fees
pursuant to the Rebuild Alabama Act shall be effective January
1, 2020.
(h)(1) Effective October 1, 2025, in addition to the
annual license taxes and registration fees imposed in
subsections (a) and (b), there is hereby imposed and charged
an annual license tax and registration fee of five dollars
($5).
(2) Notwithstanding any other law to the contrary, all
proceeds of the annual license tax and registration fee
imposed and charged in subdivision (1) shall be deposited into
the Alabama Public Transportation Trust Fund, established in
Section 41-23-193, and used by the Alabama Department of
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Section 41-23-193, and used by the Alabama Department of
Economic and Community Affairs to increase public
transportation options across the State of Alabama.
(3) County commissions and municipalities by resolution
may opt-out of the requirement to impose and charge the annual
license tax and registration fee imposed and charged in
subdivision (1). "
Section 2.This act shall become effective on October
1, 2025.
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