HB201 Alabama 2016 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2016

Title

Taxation, division of tax proceeds from abatements, Sec. 40-9B-5 am'd.

Summary

HB201 requires that private payments or in-kind contributions received in exchange for a tax abatement be divided between the affected local governments based on the tax proceeds that would have been collected if the abatement had not occurred.

What This Bill Does

It amends Section 40-9B-5 to require that any payment or in-kind award received from a private user in exchange for an abatement be divided between the municipality and the county. The split is based on the portion of the tax proceeds the municipality or county would have received if the tax had not been abated. An industrial development board or authority with board members appointed by the county and local municipalities is exempt from this sharing rule. If the recipient can prove the award was not related to the abatement, the division requirement does not apply.

Who It Affects

• Municipalities and counties (and certain public industrial authorities) that grant abatements would need to share any private payments or in-kind contributions they receive with the other affected local government according to the tax proceeds that would have been paid.
• Private users or related parties who provide payments or in-kind contributions in exchange for an abatement would be subject to the sharing rule and may need to prove the award is not tied to the abatement.

Key Provisions

• Private payments or in-kind awards received in exchange for an abatement must be divided between the municipality and county based on the tax proceeds that would have been paid if the taxes had not been abated.
• Industrial development boards or authorities with board members appointed by the affected county commission and local municipalities are exempt from this sharing requirement.
• If the recipient can prove the award was not related to granting the abatement, the division requirement does not apply.

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