HB523 Alabama 2016 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2016

Title

Local governments, annual report to Legislature assessing success of tax abatements granted to businesses, Sec. 40-96-14 added

Summary

HB523 would require local governments that grant tax or property abatements to annually report to the Legislature on how those abatements perform and what they cost and benefit.

What This Bill Does

The bill requires municipalities, counties, and public industrial authorities to submit an annual report assessing each abatement. The report must evaluate whether the abatement meets its goals, who benefits, and the return on investment including impact on local tax revenues and other economic benefits, as well as the economic results and any unintended effects. The Department of Revenue will create a reporting format and provide necessary tax information, and data may be requested from other agencies; confidentiality rules protect proprietary information and taxpayer records. Reports are due starting in the 2017 Regular Session and then every year afterward, and the act becomes law immediately after governor approval.

Who It Affects

• Local governments (municipalities, counties, and public industrial authorities) that grant abatements, who must prepare and submit annual evaluation reports.
• The Alabama Department of Revenue and the Legislature, which will receive the reports, have a role in developing the reporting format, providing needed tax data, and coordinating information requests.

Key Provisions

• Adds Section 40-96-14 requiring annual reports on tax or property abatements by local governmental bodies.
• Reports must assess each abatement using criteria: effectiveness in meeting purpose and beneficiaries; positive return on investment and impact on local tax revenues; economic results and any unintended effects.
• Confidentiality protections: no required disclosure of proprietary or trade secret information; taxpayer record confidentiality remains in effect.
• Governmental bodies may request information from other agencies to complete the report; the Department of Revenue will develop the report format and supply necessary tax information.
• Effective immediately after passage and governor's approval; reports due by the second Legislative day of the 2017 Regular Session and annually thereafter.

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

Subjects

Economic Development