SB212 Alabama 2016 Session

Summary

Primary Sponsor

Clay Scofield

Republican

Session

Regular Session 2016

Title

Broadband telecommunications network facility, exempt from taxation for 10 years on facility built after January 1, 2016, Secs. 40-21-6, 40-21-9, 40-21-17, 40-21-18, 40-21-20, 40-21-21 am'd.

Summary

SB212 would create a 10-year property tax exemption for qualifying broadband network facilities built after January 1, 2016 to encourage private investment in Alabama's broadband infrastructure.

What This Bill Does

The bill amends several sections of Alabama tax law to provide a 10-year property tax exemption for broadband network facilities placed into service after January 1, 2016. It defines eligible property as equipment and components used to transmit broadband signals meeting at least 10 Mbps download and 1 Mbps upload speeds. The exemption applies to ad valorem taxes and lasts for 10 tax years starting from when the facility is placed into service, potentially reducing tax revenue for those years. The goal is to spur private investment in broadband infrastructure.

Who It Affects

• Private broadband providers and developers building qualifying facilities in Alabama would receive a 10-year property tax exemption on those facilities
• Local governments and tax districts in the areas where the facilities are located could see reduced property tax revenues during the exemption period

Key Provisions

• Provides a 10-year property tax exemption for qualifying broadband telecommunications network facilities constructed after January 1, 2016, starting from the date the facility is placed into service
• Defines qualifying property as electronics, equipment, transmission facilities, fiber optic or copper cable, and any other property used to transmit broadband signals at speeds of at least 10 Mbps download and 1 Mbps upload
• Amends Sections 40-21-6, 40-21-9, 40-21-17, 40-21-18, 40-21-20, and 40-21-21 to include the exemption from ad valorem taxation
• Becomes effective immediately after passage and 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

Tax Exemptions