HUNTSVILLE, Ala. (WAFF) - Get ready to feel some pain at the pump. For the first time in 27 years, drivers are shelling out more money in taxes.
The first phase of Alabama’s 10-cent fuel tax increase goes into effect Sunday, September 1st. The state legislature approved the tax hike in March. It’s the first increase of it’s kind since 1992. Governor Kay Ivey says the tax hike will generate approximately $192 million dollars in the first year.
Subsequent tax increases include 2 cents on Oct. 1, 2020, and another 2 cents on Oct. 1, 2021.
“The state needs the money first of all so if it goes where they say it’s going to go then I think it’s great for the state,” said Lauderdale County resident Brant Morris.
“My opinion is we don’t need it. Most of it will go to Montgomery or Mobile. I doubt North Alabama will see a penny of it,” said resident Dennis Baker.
Some convenience store owners say they’re worried too. They’re concerned it will keep out-of-state customers away if they know they have to pay more to fill up.