SB85 Alabama 2016 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2016

Title

Ad valorem taxes, removal of levy of for certain landowners receiving economic incentives, counties and municipalities authorized to waive, Sec. 40-7-25.3 am'd.

Summary

SB85 would exempt incentivized landowners from the extra state ad valorem taxes and allow counties and municipalities to elect to waive local extra taxes when Class III property is converted from current-use value.

What This Bill Does

Currently, if Class III property is converted to a non-qualified use within two years, the tax assessor calculates extra ad valorem taxes for the preceding three years. SB85 removes the state portion of those extra taxes for landowners who receive state economic incentives granted through a state project agreement or contract. It also allows county or municipal governments to opt to waive the local portion of those extra taxes for the same incentivized landowners through an election.

Who It Affects

• Landowners who receive state economic incentives (through a state project agreement or state contract) and convert Class III property from current-use value to a non-qualifying use, who would be exempt from the extra state taxes and, if the local government chooses, from the extra local taxes.
• County and municipal governments, which would have the option to waive the local extra ad valorem taxes for incentivized landowners via election.

Key Provisions

• Amends Section 40-7-25.3 to exclude landowners receiving state incentives from the additional state ad valorem taxes after conversion.
• Allows county or municipal governments to elect to waive the additional local ad valorem taxes for incentivized landowners.
• Effective immediately upon passage and 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