A bill that would remove excise taxes and allow the state to charge sales tax on lubricating oil products passed the House Ways and Means Education Committee Thursday, May 7.

HB587, sponsored by Rep. Terri Collins, R-Decatur, would significantly increase the cost of lubricating oil products used daily in all types of farming and forestry equipment.

The bill passed after being voted down by the same committee Wednesday.

It would raise $10 million for the Education Trust Fund (ETF) to replace use taxes being moved from the ETF to the General Fund. The bill would also open the door for counties and municipalities to collect sales tax on lubricating oil.

This week, House Republicans proposed a revenue package and a gambling compact with the Poarch Band of Creek Indians to help offset the General Fund budget shortfall.

The revenue package would bring in about $200 million from government consolidations, budget transfers and tax and fee increases. The compact would give the Poarch Creeks a monopoly on gambling in the state in exchange for taxation on future revenues and an immediate $250 million.

Meanwhile, Senate Pro Tem Del Marsh, R-Anniston, filed a bill on Tuesday that would create a state lottery, establish casino-style gaming at up to four locations and encourage Gov. Bentley to discuss a gaming compact with the Indians. Marsh's bill, SB453, has been assigned to the Senate Tourism and Marketing Committee where it will receive a public hearing and vote Wednesday, May 12, at 1 p.m. in Statehouse Room 324. Gov. Bentley said he is opposed to gambling and will not seek a compact with the Poarch Creeks. Bentley continues to insist on passage of his $541 million tax proposal.

On Wednesday, the House Ways and Means General Fund Committee approved the following House leadership-proposed bills:

• Increase motor vehicle title costs from $15 to $25 per vehicle,
• Increase business privilege tax maximum from $15,000 to $22,000 and eliminates the $100 minimum most small businesses pay,
• Increase car rental taxes from 1.5 to 2 percent,
• Increase the cigarette tax by 25-cents a pack,
• Increase sales tax for certain out-of-state residents purchasing cars in Alabama and
• Consolidation of the Alabama Historical Commission into the Departments of Archives and Conservation.

A bill that would increase the number of F4 farm tags a farmer could purchase passed the Senate Taxation and General Fund committee Wednesday, May 6.

HB217, sponsored by Rep. Alan Boothe, R-Troy, passed unanimously. The bill capped purchases at four F4 tags per person.

Sen. Clay Scofield, R-Arab, sponsored SB103, a Senate companion bill, and said allowing farmers to purchase moreF4 tags is a question of fairness.

"Farmers are only using (F4 farm tag trucks) when they're getting their grain to market, and that's usually only four months out of the year," Scofield said. "So why should farmers have to buy the same tag at the same cost as someone from a trucking company that uses that (X9) tag year round?"

F4 farm tags for trucks over 42,001 pounds cost $250, while X9 truck tags for trucks over 80,000 pounds cost as much as $890. Currently, F4 tags are limited to only one per person. It is the only tag limited for purchase in the state.