SB152 Alabama 2011 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Gerald O. DialClay ScofieldPhillip W. WilliamsBill HoltzclawPaul BussmanDick BrewbakerShadrack McGillGreg J. ReedJimmy HolleyScott BeasonArthur OrrRusty GloverBen H. BrooksDel MarshJ.T. WaggonerGerald H. AllenBryan Taylor

Session

Regular Session 2011

Title

Small businesses, expansion or construction of new commercial property, noneducational ad valorem tax exemption authorized for certain time period, reappraisal

Summary

SB152 would give qualifying small businesses a five-year noneducational property tax exemption for expansion or relocation projects in Alabama, with an intent filing and reappraisal rules.

What This Bill Does

Provides a five-year noneducational property tax exemption for expansion or relocation projects by small businesses (fewer than 100 employees) in Alabama, starting from project commencement. The exemption applies to a defined project (land, buildings, improvements, and related property) and requires the investing company to file a statement of intent with the Department of Revenue. If the project is sold during the five-year period or after it ends, the property is reappraised at current value and the exemption ends. The Department of Revenue administers the exemption, may promulgate rules, audits compliance, and reports annually to the Legislature.

Who It Affects

• Small business companies with fewer than 100 employees undertaking expansion or relocation projects in Alabama, who would be eligible for the five-year noneducational property tax exemption.
• The Alabama Department of Revenue and the state's tax system, which would administer the exemption, require filings, perform audits, and report annually; property would revert to appraised value after five years or on sale.

Key Provisions

• Exemption from noneducational property tax for expansion or relocation projects by small business companies (fewer than 100 employees) for five years from project commencement.
• Exemption applies to a project defined as land, buildings, improvements, and related real and personal property necessary for the project.
• Eligibility requires filing a statement of intent with the Department of Revenue on behalf of all owners/partners to claim the exemption.
• If the project is sold by the exempt entity or after five years, the property is reappraised at current value and the exemption ends.
• Department of Revenue is responsible for granting the exemption, may promulgate rules, and must audit and report on exemptions annually.
• Small business entities must maintain records related to the exemption.
• Effective date is the first day of the third month after passage and governor's approval.

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

Subjects

Business and Commerce