SB504 Alabama 2012 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Bill Holtzclaw
Republican
Session: Regular Session 2012
Title: Madison, ad valorem tax, increased, use for education purposes, referendum
Summary: SB504 would let Madison raise its city general-purpose tax rate from 1.8% to 2.4% if voters approve, with part of the revenue reserved for education and a requirement for participating nearby towns to match the increase to support Madison schools.
What This Bill Does
If approved by voters, the City of Madison could increase its general-purpose ad valorem tax from 1.8% to 2.4% of property value, starting with the 2012 tax year or later. At least 6/24 of the new revenue must be used for public educational purposes in the city, while the rest can be used for other city needs. Additionally, municipalities or towns that participate in the Madison City School System would have two years to raise their own ad valorem taxes by the same amount and pass the proceeds to the Madison City School Board; if they fail to do so, students from those municipalities may not attend Madison schools.

Who It Affects
Madison residents and property owners, who could see higher property taxes if the increase is approved.
Municipalities or towns that participate in the Madison City School System, which must raise their own ad valorem taxes by the same amount or risk their residents' ability to attend Madison City Schools.

Key Provisions
Increase the City General Purpose Tax rate from 1.8% to 2.4% of assessed property value, subject to a majority vote in a special election held during a regular election.
The increase can take effect for the tax year beginning October 1, 2012, or a later year as determined by the city.
Within two years after the increase becomes effective, participating municipalities/towns must raise their ad valorem taxes by the same amount and remit the proceeds to the Madison City School Board; if they do not, students from those municipalities may not attend Madison City Schools.
6/24 of revenues from the City General Purpose Tax must be used exclusively for public educational purposes in Madison; the remainder may be used for other municipal purposes.

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