Some cities could get more money under new gas tax proposal

Some cities could get more money under new gas tax proposal
A new gas tax will yield $325,000,000 for infrastructure after a tax increase is phased in over three years. (Source: {WBRC})

BIRMINGHAM, AL (WBRC) - The proposed state gas tax increase is one step closer to becoming law. The House Transportation Utilities and Infrastructure committee unanimously approved a 10-cent gas tax increase. The plan would increase the state gas tax by 10 cents over the next few years. It will now go to the House floor for a vote Friday morning.

We're told Jefferson County could get an additional $6.5 million once the tax is fully implemented.

Two-thirds of the money will go to state projects then 25 percent will go to counties and 8 percent to municipalities. The League of Municipalities tells us in the first year the city of Birmingham will get an additional $1.4 million.

We're told the tax for the cities will be shared two ways with some of it based on population size.

“This could mean as much as $26 million annually into our municipal portfolios to be used on road and bridge projects throughout our state enhancing the lives of citizens and families that live, work and play in those communities,” Greg Cochran, with the Alabama League of Municipalities said.

The gas tax hasn’t been raised in Alabama since 1992.

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