SB283 Alabama 2010 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

Co-Sponsors

Hinton MitchemLowell BarronArthur OrrTom Butler

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

SB283 creates the Enhanced Use Lease Area Act to redevelop underutilized military-area property through tax increment financing and state property tax abatements for enhanced use lease areas.

What This Bill Does

It establishes Enhanced Use Lease Areas (EULAs) within tax increment districts to unlock underutilized real or personal property on military installations. It allows qualified property within these districts to receive a state property tax abatement or, in lieu of those taxes, mandatory payments to the district’s public entity to fund project costs and debt. It sets district rules, including boundaries, plan approvals, base value calculations, and loan/bond funding, and requires wage withholding reporting for construction workers. It also applies retroactively to certain districts created after January 1, 2010, and ties district duration to whether the district is blighted or largely composed of EULA property (30 years for blighted districts, 35 years for largely EULA districts).

Who It Affects

• Property owners and developers within tax increment districts that contain at least 50% enhanced use lease area, who may receive a state property tax abatement or must make in-lieu payments to fund project costs and debt.
• Local governments (cities and counties) and military base managers who create and manage tax increment districts, oversee project plans and funding, issue tax increment obligations, and coordinate with the Department of Revenue and tax assessors.

Key Provisions

• Creates Chapter 9E (Enhanced Use Lease Area Act) and defines terms such as Enhanced Use Lease Area, Qualified Property, State Property Tax Increment, and Project Costs.
• Allows districts to abate state property taxes for qualified property where at least 50% by area is an enhanced use lease area, with owners paying the state property tax increment to the public entity instead, to fund project costs and repay tax increment obligations.
• Requires local governing bodies to approve tax increment district boundaries and project plans via public hearings, notices, and submissions to deferred tax recipients, and to designate project boundaries clearly.
• Sets district duration: up to 30 years for blighted/economically distressed districts and up to 35 years for districts with 50%+ enhanced use lease area (subject to amendments).
• Defines tax increment base and how increments are calculated, including adjustments when project plans are amended and when 50%+ EULA conditions apply.
• Creates a tax increment fund for each district; requires deposits of all tax increments and allows disbursement to reimburse the public entity for project costs and to satisfy obligations; funds may be invested and then distributed after obligations are paid.
• Requires school district taxes within districts to be paid on a scheduled date (February 1) and directs how those school tax increments are handled.
• Prohibits using increased valuations in the general state school aid formula until project costs are completed.
• Imposes a wage withholding requirement for construction workers to be reported and paid to the state, and establishes rules for provisional construction employers under state withholding.
• Provides retroactive applicability to districts created on or after January 1, 2010, if they meet the 50%+ enhanced use area criterion.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation