At 28 cents per gallon, Alabama has the 22nd-highest overall gas tax in the country.
With the price of gasoline coming off all-time highs, some are suggesting Alabama pause its fuel tax collection.
Nearby Georgia, with the 20th-highest, and Florida, with the 44th-highest, have temporarily suspended their gas tax for some period during the 2022 calendar year.
Alabama lawmakers have been resistant to the possibility of a gas tax holiday, citing the need for infrastructure improvements.
Among those is State Sen. Steve Livingston (R-Scottsboro), the owner of The Fuel Center, Inc., a distributor of Chevron Gasoline and Lubricants in Jackson County.
During an appearance on Mobile radio FM Talk 106.5's "The Jeff Poor Show," Livingston explained how Georgia was able to offer a break from fuel taxes.
However, he also argued that if Alabama were to follow suit, those savings might not be realized by the consumer.
"They have so much money over there that they've put into with gasoline tax over several years," Livingston said. "We're in such a bad position trying to play catch-up that this money we're spending has already been allocated into these highway projects. We've got huge, huge highway projects going on all over the state right now. [Interstate] 59 from Etowah County into Dekalb County is getting redone. It's a massive project, $100 million in all."
"So, the truth of the matter is the 10 cents that was put on here recently – if we remove it, it probably would never be reflected at the pump. It would be consumed between the middle-man and the retailer, who have been struggling to make money the last several years, especially with prices as high as they've been and volumes falling off. So, it is a good possibility that amount would never be reflected at the pump. But we are seeing some relief. This is natural relief that happens. Prices go up, and people get in front of it on the way up, and it just takes a little while to settle into a price point or a category where your competition is and where you are."
To connect with the author of this story, or to comment, email jeff.poor@1819News.com.
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