HB345 Alabama 2010 Session

Summary

Primary Sponsor

Laura HallRepresentative

Democrat

Co-Sponsors

Randy HinshawButch TaylorMac McCutcheonMike BallHoward SanderfordPhil Williams

Session

Regular Session 2010

Title

Counties and municipalities, development of blighted areas, tax increment districts, extended to enhanced use lease areas which are under utilized areas on military base leased by secretary of a military department, taxes on incremental increase in value of development paid to finance development, Enhanced Use Lease Area Act, Secs. 40-9E-1, 40-9E-2 added; Secs. 11-99-1, 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-10, 40-18-70 am'd.

Summary

This bill creates the Enhanced Use Lease Area Act to finance redevelopment of underused military base areas through tax increment financing, with state property tax abatements or in-lieu payments and wage reporting requirements.

What This Bill Does

It establishes a new state framework (Chapter 9E) for Enhanced Use Lease Areas within tax increment districts, defining terms and how projects can be funded. It allows qualified property in a district with at least 50% enhanced use lease area to receive a state property tax abatement; instead, property owners would pay an in-lieu amount to the public entity that created the district to fund project costs and repay tax increment obligations. It requires reporting of wage withholdings for certain construction workers to the state. The act has retroactive applicability for districts created on or after January 1, 2010.

Who It Affects

• Property owners of qualified property within a tax increment district that contains at least 50% enhanced use lease area, who may receive a state property tax abatement or make in-lieu payments to fund project costs.
• Public entities (municipalities and counties) that create tax increment districts and manage the associated tax increments and project funds, plus deferred tax recipients such as school districts and other taxing authorities.
• Construction employers and workers, as wage withholdings for construction labor may be reported and remitted to the state.

Key Provisions

• Creates the Enhanced Use Lease Area Act of 2010 and a new Chapter 9E in Title 40 to govern Enhanced Use Lease Areas and tax increment financing for military base areas.
• Allows 50%+ enhanced use lease areas within a district to be eligible for state property tax abatements, with owners making in-lieu payments to the district’s public entity to fund project costs and repay tax increment obligations; includes wage withholding reporting requirements and retroactive applicability for districts created on/after January 1, 2010.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation