HB530 Alabama 2015 Session

Summary

Primary Sponsor

Anthony DanielsRepresentative

Democrat

Session

Regular Session 2015

Title

Tax increment districts, provide that compensation may be determined soley by local governing body if a district is within a Major 21st Century Manufacturing Zone

Summary

This bill would amend the Alabama Constitution to let local governments run tax increment districts in a Major 21st Century Manufacturing Zone with sole discretion over compensation for redevelopment and to bypass certain constitutional limits on public credit, while preserving existing districts.

What This Bill Does

It proposes that the governing body that established a tax increment district within a Major 21st Century Manufacturing Zone may determine the amount and type of compensation for redevelopment of property sold to or for private interests, without regard to certain constitutional protections. It would allow public funds and district revenues, as well as debt issued for district purposes, to be used for acquisition and redevelopment and to be disposed of for private interests with such compensation as the governing body decides, and the obligations would not count against the constitutional debt limit. The amendment would repeal and replace Amendment 475, preserve districts created under it, validate actions taken under it, and validate the Major 21st Century Manufacturing Zone Act; it would require an election to approve the amendment and would validate the related Act. Overall, it expands local control over TID projects within the specified zone and reduces constitutional constraints on funding and debt related to those projects.

Who It Affects

• Municipalities and counties that establish a tax increment district within a Major 21st Century Manufacturing Zone would have sole discretion to set compensation and manage funds for redevelopment.
• Private interests receiving property or redevelopment benefits from such districts would be subject to compensation determined by the local governing body, potentially without standard market-value protections.

Key Provisions

• Allows the governing body that created a tax increment district within a Major 21st Century Manufacturing Zone to determine the amount and type of compensation for property redeveloped for private interests, without regard to Sections 93 and 94 of the Alabama Constitution.
• Permits use of public moneys, including ad valorem tax revenues, and proceeds of district bonds for acquisition and redevelopment, with compensation determined by the district’s governing body and without regard to debt limits or certain constitutional restrictions.
• Repeals and replaces Amendment 475, preserves any districts created under that amendment, and validates actions taken by counties and municipalities under it.
• Deletes barriers from the Major 21st Century Manufacturing Zone Act and requires voter approval through an election to adopt the constitutional amendment, while validating and confirming the related act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments