Transportation (Bridges)

This bill authorizes Choctaw County commissioners to raise property taxes by up to five mills to fund road and bridge improvements. The tax increase would apply for a maximum of five years and must be approved by a majority of voters in the county at an upcoming election. The bill also allows the county to take on debt to finance specific infrastructure projects using the tax revenue.

This bill would allow Winston County to collect an eight percent lodging tax on overnight stays at hotels, motels, inns, and short-term rentals, with the tax paid by guests and collected by lodging providers. The collected funds would be distributed to road and bridge improvements, the sheriff's office for law enforcement, and the county general fund for tourism development and debt repayment on the judicial building and jail. Additionally, the bill imposes a five dollar per night fire protection fee on transient accommodations, with the proceeds distributed equally among volunteer fire departments in the county. Both the lodging tax and fire protection fee would only take effect if approved by voters in a referendum held during the next state or local election.

HB 531 would exempt contractors working on public highway, road, or bridge construction projects from paying state taxes on natural gas and liquefied petroleum gas (LPG) used during construction. Specifically, it removes utility gross receipts tax, utility service use tax, and state sales and use tax on these fuels for licensed contractors or subcontractors under government contracts. Counties and municipalities may also adopt similar local tax exemptions for the same purpose. The bill, set to take effect on September 1, 2026, applies only to projects funded by governmental entities as defined in Alabama law.

SB 226 allocates supplemental funding for Alabama's fiscal year ending September 30, 2026, primarily providing $387.5 million from the Public Road and Bridge Fund and $200 million from the Rebuild Alabama Fund to the Alabama Department of Transportation for highway and bridge projects. It also allocates $50 million for energy infrastructure development through the Strategic Energy Infrastructure Development Fund and $11 million to the Unified Judicial System for court operations. Additional funds support Medicaid, the Alabama Alcoholic Beverage Control Board, and geological surveys. The bill amends the main transportation appropriation to include the Alabama Highway Authority in debt service payments for highway bonds.