SB96 Alabama 2013 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsors

Paul SanfordBill HoltzclawShadrack McGillClay Scofield

Session

Regular Session 2013

Title

Economic Development, tax increment districts, municipalities authorized to form, Major 21st Century Manufacturing Zone Act for certain manufacturing purposes, improvements funded through tax increment financing, Secs. 11-99-1, 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8 am'd.

Summary

SB96 creates Major 21st Century Manufacturing Zones and lets cities/counties fund manufacturing-focused infrastructure and buildings through tax increment financing.

What This Bill Does

The bill lets municipalities designate large, underutilized land as Major 21st Century Manufacturing Zones for industries like automotive, aviation, medical, and electronics, and fund improvements using tax increment financing. It rewrites key laws to authorize capital and infrastructure improvements, administer project plans, and allow districts to issue tax increment obligations with specific duration and security rules. It also sets public process requirements, base-value rules, and transition guidelines, including applicability to districts created after April 1, 2013 with at least 50% zone area.

Who It Affects

• Municipalities and counties that create and oversee tax increment districts and Major 21st Century Manufacturing Zones, gaining authority to fund infrastructure and facilities.
• Property owners, taxpayers, and local taxing authorities within those districts, whose tax revenues may be redirected to district projects and who may be affected by base-value determinations, relocation requirements, and district boundaries.

Key Provisions

• Establish Major 21st Century Manufacturing Zone criteria: at least 250 contiguous acres, located within a municipality, suitable for specified manufacturing facilities, with an anticipated minimum of $100 million in capital expenditures.
• Authorize tax increment financing to fund project costs, including capital/infrastructure improvements, building construction, financing costs, professional services, relocation, and related items, within the district or in enhanced use/Major zones.
• Amend Sections 11-99-1, 11-99-2, 11-99-4, 11-99-5, 11-99-6, and 11-99-8 to formalize zone authority, funding mechanisms, and project-plan requirements.
• Define process and planning requirements: public hearings, notices, project plans with detailed costs and maps, relocation/compensation plans, and certification that plans meet master plans and public-interest goals.
• Set tax increment base and district durations: base value determined at district creation; redetermination rules if the plan is amended; district duration up to 30 years for blighted/distressed areas and up to 35 years for enhanced use/Major zones.
• Debt and security rules: districts may issue tax increment obligations up to project costs, with options for liens, full faith-and-credit pledges, and pay-as-you-go financing; funds are used to repay obligations or reimburse project costs and then distributed to taxing authorities.

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

Subjects

Economic Development