SB400 Alabama 2012 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Co-Sponsor

Greg J. Reed

Session

Regular Session 2012

Title

Tax abatement incentives provided for properties damaged by tornados or storm that are disqualified, Sec. 40-9B-13 am'd; Act 2011-709, 2011 Reg. Sess., am'd

Summary

The bill protects and extends tax abatements for properties damaged by tornadoes or other natural disasters by allowing replacement property to keep its abatements under specific rules.

What This Bill Does

It expands protections for ad valorem abatements when damaged property is repaired or replaced after a natural disaster. It defines disaster replacement property and replaced property and explains how abatements can continue even if the replacement is at a different site or costs more than the original. It requires approvals if the replacement cost exceeds the original by more than 25% and sets notice and reporting requirements. It is retroactive to April 15, 2011 and applies to transactions after that date, while abatements in place before the disaster are not disqualified due to temporary interruptions in activity.

Who It Affects

• Private use industrial property owners with existing tax abatements who repair or replace damaged property under a disaster scenario, with rules on continuation and potential transfer of abatements.
• Local governing bodies (cities, counties, or public industrial authorities) that grant abatements, which must approve continuation of abatements when replacement property is in a different jurisdiction or when costs rise beyond thresholds.
• Assessing officials (county assessors) and the Alabama Department of Revenue, which must receive notices of location changes and annual tax filings related to the replacement property.
• Owners and developers dealing with disaster replacement property and the related administrative processes that accompany changes in location or cost.

Key Provisions

• Defines disaster replacement property and replaced property, and clarifies that abatements may continue for replacement properties damaged by a natural disaster.
• Abatements are not disqualified solely because the replacement involves repair or replacement after the April 2011 tornado outbreaks, and applies to transactions after December 31, 2012.
• If the replacement property is at the same site and the cost does not exceed the replaced property by more than 25%, no new governing body approval is required, but written notice must be given to the abatement authority, county assessor, and Department of Revenue by October 1 following the change.
• If the replacement property is at a different site within the same governing jurisdiction, no new approval is required for continuation; if in a different jurisdiction, the appropriate governing body must approve continuation under existing statutes (40-9B-5 and 40-9B-6).
• If replacement costs exceed the replaced property's cost by more than 25%, the excess amount requires governing body approval for continued abatement, while the portion up to 25% may continue without new approval.
• Applies to transactions entered into or disaster replacement property acquired after the April 2011 tornado outbreaks; abatements existing before a natural disaster are not disqualified due to temporary business interruptions through October 1, 2011.
• Retroactive effective date of April 15, 2011; provisions are severable and may be repealed if conflicting laws exist.

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