STATE LEGISLATIVE UPDATE: ALABAMA PASSES FUEL TAX FIX

This week, it was Alabama’s turn to enact legislation that addresses the taxation of CNG and LNG as motor fuels — bringing the number to nine states that have now acted in 2014 to address the taxation of CNG or LNG. On Wednesday, Governor Bentley signed into law HB 552. The new law removes CNG and LNG from the decal tax and provides a tax holiday for the fuels until October 1, 2016. If there has been no further action with respect to taxation of CNG and LNG, the fuels would at that time be subject to the state’s motor fuel tax and would be applied per gasoline gallon equivalent (GGE) in the case of CNG and per diesel gallon equivalent (DGE) in the case of LNG. The excise taxes in Alabama currently are set at 16 cents for gasoline and 19 cents for diesel fuel. The law also directs that these fuels be sold in gallon equivalent units. The changes were effective upon passage. Elsewhere, in Virginia, Governor McAuliffe signed into law HB 516, a bill that directs the state to certify technicians who work on NGVs. The state is directed to establish criteria and certification requirements for persons who provide repair, conversion or maintenance services for NGVs. Several other states such as Oklahoma, Texas and Utah already impose such requirements.