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Construction Partners Backs Rebuild Alabama Gas Tax Hike

Thu March 21, 2019 - Southeast Edition #7
Construction Partners Inc.

Construction Partners Inc., a civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, issued a statement March 14 following the enactment earlier in the week of the Rebuild Alabama Act, which provides for an increase in Alabama's gas tax to be used for transportation infrastructure projects.

"We applaud Gov. Ivey and the Alabama Legislature for working in a bipartisan manner to ensure a stable source of funding for transportation infrastructure projects across the state," said Charles E. Owens, president and chief executive officer of the company. "The additional resources generated by the Rebuild Alabama Act will continue to drive economic development and public safety efforts in the state. We look forward to playing our part in rebuilding Alabama's roads and bridges."

The Rebuild Alabama Act provides for a 10-cent increase in Alabama's tax on gasoline (currently 18 cents per gallon) and diesel fuel (currently 19 cents per gallon) that will be phased in over three years, with an increase of 6 cents per gallon on Oct. 1, 2019, 2 cents per gallon on Oct. 1, 2020, and 2 cents per gallon on Oct. 1, 2021.

Beginning in 2023, the tax will be tied to the National Highway Construction Cost Index and will be subject to automatic adjustments of up to one cent every two years.

The law, which represents the first increase in Alabama's gas tax since 1992, is expected to generate approximately $320 million in additional annual funding for investment in Alabama's roads and bridges when fully implemented.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating across five southeastern states, with 31 hot mix asphalt plants, nine aggregate facilities and a liquid asphalt terminal. Publicly funded projects include local and state roadways, interstate highways, airport runways and bridges. Private sector projects include paving and site work for office and industrial parks, shopping centers, local businesses and residential developments.

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