State Sen. Linda Coleman-Madison (D-Birmingham) has pre-filed a bill ahead of the upcoming legislation to levy an additional $5 license tax and registration fee on motor vehicles in the state.
Alabama charges an annual registration fee of $13 per automobile and $7 per motorcycle. Electric cars are charged an additional $200 annually, and hybrid vehicles are taxed an extra $100. The taxes imposed on electric and hybrid vehicles are meant to increase by $3 every fourth year since July 2023.
Senate Bill 11 (SB11) would impose an additional $5 registration fee and licensing tax on top of the current fees and taxes the state collects. The proceeds of the extra fees would be deposited into the Alabama Public Transportation Trust Fund.
The Alabama Public Transportation Trust Fund was created in 2018 and has remained unfunded. The fund was created through the State Treasury to distribute designated funds appropriated by the legislature or collected from grants or other sources to increase public transportation options across the state. The proceeds from the state's controversial gas tax can only be used for roads and bridges, not for public transportation.
The bill did not currently have a fiscal note. However, Coleman-Madison told CBS 42 the bill would bring in $26 million in state funding.
Coleman-Madison filed similar legislation in two previous legislative sessions. However, neither of them even reached a committee. The bill will likely face an even heftier uphill battle in the upcoming session since leadership in the Republican supermajority has already made cutting government spending a priority.
The 2025 legislative session is slated to begin on February 4.
To connect with the author of this story or to comment, email craig.monger@1819news.com.
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