Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-17-371

Cost of Collection; Distribution of Tax Proceeds

Official textalison.legislature.state.al.us

# (a)

The Alabama Department of Revenue shall retain one-quarter of one percent (0.25%) of the tax proceeds, less any refunds, from this additional excise tax on gasoline and diesel fuel for its cost of collection. The department may adopt rules and such forms as may be necessary for the administration of the excise tax provided for in this article.

# (b)

Each month, prior to the remaining payments provided in this article, up to $750,000 of the tax proceeds from the additional excise tax on gasoline and up to $230,000 of the tax proceeds from the additional excise tax on diesel fuel shall be distributed first to the Alabama Highway Finance Corporation for the payment of the principal of and interest on bonds to be issued by it to finance improvements to the ship channel providing access to the facilities of the Alabama State Docks, to the extent necessary for such purpose. The amount distributed pursuant to this section may be pledged as security for any loan or debt proceeds as deemed necessary by the Alabama Highway Finance Corporation to finance the improvements, but not to exceed one-hundred fifty million dollars ($150,000,000) in aggregate principal amount to be used for improvement projects. This distribution of tax proceeds to the Alabama Highway Finance Corporation shall terminate at the final maturity of the bonds secured by these tax proceeds, provided that the bond term shall not exceed 20 years.

# (c)

Notwithstanding any other law to the contrary, the net tax proceeds remaining after any refunds, the cost of collection, and the distribution to the Alabama Highway Finance Corporation authorized above shall be distributed as follows:

# (1)

Sixty-six and sixty-seven one hundreths percent (66.67%) shall be allocated to ALDOT and deposited in the Rebuild Alabama Fund, to be used for transportation infrastructure improvement, preservation and maintenance projects pursuant to the Rebuild Alabama Act. The net tax proceeds may be used to match any available federal, state, and local transportation funding. The funds allocated to the department shall be audited by the Department of Examiners of Public Accounts in the same manner as all other department funds. The Director of ALDOT, with approval of the Governor, may also pledge a share of the net tax proceeds not to exceed fifty percent (50%) of the proceeds as security for the issuance or refinancing of any loan or debt obligation used for transportation infrastructure improvement, preservation and maintenance of projects pursuant to the Rebuild Alabama Act. This pledge shall be irrevocable for the duration of the loan or debt obligations for which the net tax proceeds are pledged.
a. ALDOT shall not use the net tax proceeds for any of the following purposes:
1. Salaries, benefits, or any other form of compensation for state or contract employees except as included as direct project costs and subject to audit by the Department of Examiners of Public Accounts.
2. The purchase, lease, or maintenance of equipment, other than equipment purchased and permanently installed as a part of a road or bridge project.
3. The maintenance or construction of public buildings or other structures that are not integral to the system of roads and bridges.
b. Beginning on October 1, 2019, and each October 1 thereafter, ALDOT shall allocate $400,000 to each county in exchange for the annual federal allocation of $533,000 which was being distributed to each county on March 12, 2019. Nothing in the Rebuild Alabama Act shall prohibit ALDOT from utilizing these exchanged federal funds at its discretion and in a manner consistent with Federal Highway Administration (FHWA) procedures.
c. The $400,000 annual allocation to each county shall be utilized first as matching funds for any balance in the county’s federal allocation not authorized by September 30, 2019. Once these unexpended funds are authorized for an individual county, all remaining and future allocations established herein shall be expended for road and bridge projects on county roads classified as minor collectors or higher, or for bridge structures on the National Bridge Inspection Inventory, or for both.
d. The provisions of this section notwithstanding, counties shall retain the ability to be awarded and utilize other federal funds or state grants which are or may become available after the effective date of the exchange of current federal funds. Further, the exchange of current federal funds does not preclude a county from the award or utilization of any federal funds earmarked in the future for local governments through FHWA, or any federal appropriation legislation, or for both.

# (2)

Twenty-five percent (25%) shall be allocated to counties of the state to be used for transportation infrastructure improvement, preservation, and maintenance as provided for in the Rebuild Alabama Act. It shall be allocated and disbursed among the 67 counties of the state as follows:
a. Forty five percent (45%) of the amount shall be allocated equally among the 67 counties of the state.
b. Fifty-five percent (55%) of the amount shall be allocated among the 67 counties of the state on the basis of the ratio of the population of the state according to population projections from the U.S. Census Bureau Population and Housing Estimates Program or any prior special federal census held in any county. Beginning in 2020, the ratio of the population of each county to the total population of the state shall be updated every five years.
c. The net tax proceeds may be used to match any available federal, state, and local transportation funding. The governing body of a county may also pledge its share of the net tax proceeds not to exceed fifty percent (50%) of the proceeds as security for the issuance or refinancing of any loan or debt obligation used for transportation infrastructure improvement, preservation, and maintenance. This pledge shall be irrevocable for the duration of the loan or debt obligations for which the net tax proceeds are pledged.
d. Counties must ensure that at least fifty percent (50%) of the funds are allocated for projects utilizing established bidding procedures submitted by the Association of County Engineers of Alabama and approved by the Department of Examiners of Public Accounts. In addition, the county may utilize such funds to meet any other project matching requirements associated with other federally or state funded transportation projects, upon approval of the county commission. A county may utilize over fifty percent of its annual allocation of these funds for project match if the project follows the provisions for bidding herein described or is let to contract through ALDOT.

# (3)

Eight and thirty-three one hundreths percent (8.33%) shall be allocated and disbursed to the municipalities of the state to be used for transportation infrastructure improvement, preservation, and maintenance, as provided for in this article, as follows:
a. Twenty-five percent (25%) of this amount shall be allocated equally among the municipalities of the state.
b. Seventy-five percent (75%) of this amount shall be allocated among the municipalities of the state on the basis of the ratio of the population of each municipality to the total population of all municipalities of the state according to the population projections from the U.S. Census Bureau Population and Housing Estimates Program or any prior special federal census held in any municipality. Beginning in 2020, the ratio of the population of each municipality to the total population of the state shall be updated every five years. The population of any municipality incorporated subsequent to the taking of the last federal decennial census shall be deemed to be the population shown by the census for that municipality. Any municipality incorporated after March 12, 2019, shall not participate in the distribution provided for in this subsection until the fiscal year next succeeding the fiscal year during which it is incorporated.
c. The net tax proceeds may be used to match any available federal, state, and local transportation funding. The governing body of a municipality may also pledge its share of the net tax proceeds as security for the issuance or refinancing of any loan or debt obligation used for transportation infrastructure improvement, preservation, and maintenance. This pledge shall be irrevocable for the duration of the loan or debt obligations for which the net tax proceeds are pledged. Any Class 1 through 4 municipality that provides or operates public transportation services on March 12, 2019, may utilize an amount not to exceed ten percent (10%) of the net tax proceeds received annually by that municipality pursuant to the Rebuild Alabama Act to match any available federal or state transportation funding available for public transportation infrastructure improvements.

# (d)

The distribution prescribed by this section shall begin no later than January 2020.

Last amended: Act 2019-2, 1st Sp. Sess., §7

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