SB96 Alabama 2016 Session

Summary

Primary Sponsor

Dick Brewbaker

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

SB96 would require county tax abatements by municipalities or municipal authorities to be contingent on abating the corresponding municipal tax at the same rate.

What This Bill Does

It says that a municipality or public industrial authority may abate county taxes only if the corresponding municipal tax is also abated, and the county tax abatement cannot exceed the rate of the municipal abatement. This applies to abatements for construction-related transaction taxes and ad valorem taxes for up to 10 years, with similar matching requirements for longer-term abatements as outlined in current law. The bill also adds procedural steps that must be followed for abatements to take effect, such as delivery notices and waiting periods.

Who It Affects

• Municipalities and municipal public industrial authorities: must pair county tax abatements with an equal-rate abatement of the corresponding municipal tax when granting economic development abatements.
• Private use industrial property owners/developers (in municipalities or counties): abatements of county taxes are conditioned on a corresponding municipal tax abatement at the same rate, which may limit abatements unless the municipality matches the rate.

Key Provisions

• To abate county taxes, a municipality or public industrial authority must also abate the corresponding municipal tax and the county tax abatement must be at the same rate as the municipal abatement.
• Abatements for construction-related transaction taxes and ad valorem taxes for up to 10 years are subject to the matching conditions described above; municipal, county, and public industrial authority actions follow specified geographic/jurisdictional rules with these rate-matching requirements.
• For abatements longer than 10 years, existing provisions govern which entities may grant them (municipality for private use property within the municipality; county for private use property in the county; Governor for state properties), with the new rate-matching condition applying where applicable to the 10-year category.
• Abatements are not effective until the prescribed waiting period after notice/delivery to the county commission, with proof of delivery and filing requirements provided.

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