County could receive millions

Earlier this month, Gov. Kay Ivey and the Alabama Legislature passed a new 10-cent gas tax and the Association of County Commissions of Alabama has released estimates for how much revenue that will generate for cities and counties.

The goal of the new tax is to provide additional money to maintain and improve Alabama’s infrastructure.

The new revenue is divided up with 66.67 percent going to the State of Alabama, 25 percent going to the counties and 8.33 percent going to municipalities.

For Etowah County, that means a total of $2,169,363.37 per year in additional funding.

That number drops to $2,091,830.41 if Boaz is removed because the ACCA included Boaz in Etowah County’s figures and not in Marshall County’s estimate.

Of that, the estimated breakdown is as follows: County Commission - $1,442,765.60; Altoona - $20,130.96; Attalla - $54,200.49; Gadsden - $259,403.66; Glencoe - $48,285.78; Hokes Bluff - $42,464.32; Rainbow City - $77,872.66; Reece City - $18,265.96; Ridgeville - $14,662.52; Sardis City - $25,266.37; Southside - $69,946.41; Walnut Grove - $18,565.69.

The ACCA’s estimates are based on the full implementation of the tax, which won’t happen until October 2021 as the law calls for three steps before the full 10 cents is in place.

On Sept. 1, the gas tax will increase by 6 cents per gallon, and on both Oct. 1, 2020, and Oct. 1, 2021, there will be additional 2-cent increases.

The ACCA also notes that its estimates are based on the current census, and by the time the tax is fully implemented, the state is expected to be using the 2020 U.S. Census to distribute the proceeds.

Those estimates are close to other revenue estimates put out by the Alabama League of Municipalities earlier in the month.

Click the map below to see how much money each county is expected to receive.

What does the tax mean in personal terms?

Drivers can estimate the impact on their pocketbook by taking the number of miles driven in a year, dividing it by their average miles per gallon and then multiplying by 0.1.

Rep. Gil Isbell, R-Gadsden, wrote about the measure in a guest commentary published online in The Gadsden Times, and he used the following example.

“If someone drives 12,000 miles per year averaging 22 miles per gallon, they would pay $4.58 per month or $55 annually because of the added gas tax. If they drive 24,000 miles averaging 22 mpg, they would pay $110 annually,” he wrote.

There has been public pushback on the new tax, particularly on social media, but Isbell wrote about the need for the tax in his commentary.

“Presently, the state is unable to maintain, improve and construct a transportation system that adequately meets the needs and the industries that are located in Alabama,” Isbell wrote.

Isbell said the greatest physical asset owned and controlled by the state is its bridge and infrastructure system.

Locally, the Etowah County Commission expressed similar support for the tax.

Assistant County Engineer Robert Nail said on March 12 that 44 bridges in the county are past their lifespan, and the funds will allow the county to increase the amount of roads paved each year.

“It’s a good bill,” Commissioner Tim Ramsey said at the time. “I’m not happy getting taxed either, but this is a good, solid bill and it’s something we need.”

For the ACCA’s estimate of revenues by county, click here.