A bill approved unanimously by the Alabama state legislature and signed into law by Gov. Robert Bentley is changing the way motor fuel road taxes are collected on natural gas sold in the state.
The bill would provide a tax holiday for natural gas used in vehicles and give state agencies until Oct. 1, 2016, to develop a program to collect motor fuel road taxes at the point of purchase for CNG and LNG.
Only 300 CNG vehicles in Alabama currently have decals. The decal program is difficult to implement on out-of-state CNG vehicles and does not cover LNG vehicles. The legislation would tax CNG and LNG in the same fashion as gasoline and diesel.
“This legislation creates a level playing field, and it will help expand the market for alternative fuels,” says Phillip Wiedmeyer, president of the Alabama Clean Fuels Coalition. “It will ensure that Alabama doesn’t lose motor fuel tax revenue as more companies and individuals shift from traditional fuels to cleaner-burning, domestically pro- duced alternatives.”
