Fuel taxes rarely impacted by pump prices

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Meals-on-Wheels drivers deliver their food every weekday. In addition to making sure they have... — Meals-on-Wheels drivers deliver their food every weekday. In addition to making sure they have the right meal, they're also in charge of paying for those trips in their car, truck or van. (Source: WAFF)

HUNTSVILLE, AL (WAFF) - How low can they go? Gas prices keep falling across the Tennessee Valley.

We spotted a regular gallon of gas for $1.99 at a couple of gas stations in Huntsville. Some viewers across North Alabama reported even lower prices Monday.

Those lower gas prices could be impacting your everyday life in ways you haven't even thought of.

In Alabama, gas prices have dropped by an average of $1.29 a gallon, but what does that mean for gas taxes?

"Our transportation dollars are created through gas tax," said Madison County Commissioner Dale Strong. "You look at the state of Alabama - I know they're concerned about it."

In the state, 16 cents per gallon goes to taxes. And that tax money is used on road maintenance.

The Alabama Department of Revenue has found people actually buy less gas when prices get lower, which potentially means less money for repairing and repaving roads.

The good news? People buy more gas around the holidays, so the Department of Revenue isn't worried just yet. They also say gas taxes are hardly ever impacted by gas prices.

"A lot of people will probably be surprised, the amount of revenue we collect is not really impacted by the price of gas," said Information Specialist Amanda Collier.

Drivers say with all this extra money they're saving on gas, they're putting the savings back into the economy.

"You can put it to good use and it helps the economy if you spend more," said driver Dan Smith.

So for now, it seems to be paying off all around.

While the Huntsville metro area is beginning to see prices under $2 per gallon, the average price across the state remains above that threshold, at $2.17 per gallon.