HB169 Alabama 2016 Session

Summary

Primary Sponsor

Bob FincherRepresentative

Republican

Session

Regular Session 2016

Title

Economic development, tax abatement by a municipality or municipal public authority, abatement of county taxes, corresponding municipal tax required to be abated and at same rate, Sec. 40-9B-5 am'd.

Summary

HB169 requires county tax abatements by a municipality or municipal public authority to occur only if the corresponding municipal tax is abated and at the same tax rate.

What This Bill Does

The bill tightens rules for abatements on private-use industrial property by tying any county tax abatement to an abated municipal tax and requiring the county abatement to use the same tax rate as the municipal abatement. It applies to abatements for construction-related transaction taxes and ad valorem taxes up to 10 years, and clarifies related provisions for longer-term abatements under existing categories. The change becomes effective immediately after the governor signs the bill and states the abatement must follow a specified waiting period before taking effect.

Who It Affects

• Municipalities and municipal public industrial authorities: must abate the corresponding municipal tax before they can abate county taxes, and the county tax abatement must be at the same rate as the municipal tax abatement.
• Private-use industrial property owners and developers (taxpayers seeking abatements): their eligibility for county tax abatements becomes contingent on the municipality's abatement of the corresponding municipal tax and matching tax rate.

Key Provisions

• To abate county taxes, the municipality or public industrial authority must also abate the corresponding municipal tax.
• The county tax abatement is limited to the same rate of taxation as the abatement of the corresponding municipal tax.
• For abatements of construction-related transaction taxes and ad valorem taxes for up to 10 years, the above conditions must be met.
• Abatements of county taxes granted under longer-term categories remain, but still require the linking condition with the corresponding municipal tax abatement and rate where applicable.
• Abatements are not valid until the mandated waiting period (10 days after delivery or 13 days after mailing to the county commission) has passed, with proof of delivery provided to the Department of Revenue.
• The act becomes effective immediately upon the governor's approval.

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

Subjects

Taxation