Senate Committee rejects $5 car tag increase to fund public transit

MARCH 5, 2025 – MONTGOMERY, AL – The Senate Finance and Taxation General Fund Committee voted to reject legislation that would have charged $5 a year on every car license plate in the state to fund public transportation.

Senate Bill 11 (SB11) is sponsored by state Senator Linda Coleman Madison (D-Birmingham).

"Alabama has let billions of dollars go back to the federal government because we do not have a dedicated funding source for public transportation," said Sen. Coleman Madison.

Sen. Coleman Madison said that transportation is a key issue in workforce development.

"This would add a $5 tag fee," explained Coleman-Madison. "This is a nominal fee. It does allow us to pull down federal dollars for transit. Let's not be penny wise and pound foolish. Last year we would have brought down $26 million if we had this."

Charlotte Shaw is with the Alabama Coalition for Transit.

Shaw said that the $5 fee would earn $30 to $40 of additional funding. Shaw said that each county would be free to use their dollars for capital expenditures or for operating costs.

"On the urban side we are looking at more capital dollars," said Sen. Coleman-Madison. "In the rural areas it would be more on the operating side."

"If we do not get this funding we are not going to be able to transport people," said Shaw.

Coleman Madison said that this is a workforce development issue

"A lot of you do not understand it; but y'all all have constituents who use transit," said Coleman-Madison. "Baldwin County just gave back federal dollars because they could not match it. Autauga County gave money back."

Sen. Andrew Jones (R-Centre) asked if there was an opt-out in the bill.

"There is a county opt-out," answered Coleman-Madison. "This bill does not tell you what kind of system you have. You have the option to not participate."

"We have people who are not getting to their dialysis on time because they are using their public transportation system," said Coleman Madison. "They use paratransit. We need more vehicles.

"I would like the counties to opt in and I would like the counties to levy the fees," said Jones.

"We can talk about that," before it goes to the floor said Coleman Madison.

"We pass legislation all the time here where the majority does not give anybody a choice," said Sen. Merika Coleman (D-Birmingham). "For the 22 years I have been here we have been trying to find a way to fund public transportation. We are only one of two states without a direct funding source for public transportation. Public transportation is an economic development driver."

"As a representative of our rural district I want to commend the gentle lady from Jefferson County for her work on this," said Senator Robert Stewart (D-Selma). "We have a problem in this state with workforce participation. This bill would be an advantage to our state for true economic growth.

The Committee voted to rejected SB11 on a 5 to 7 vote.

"I want to thank you for your honest vote," said Sen. Coleman Madison. "You don't use public transportation, but your constituents do."

Coleman Madison said that if a Republican comes up with a dedicated funding source for transit she will support the bill.

"I look forward to you bringing this bill or something similar," Coleman Madison said.

Wednesday is Day 12 of the 2025 Alabama regular legislative session.

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