SB98 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2018

Title

Ad valorem taxes, co. commission authorized to abate taxes for Class III property taxed at current use when converted to other taxable use for projects under Ala. Jobs Act, consent of municipality if in corporate limits, Sec. 40-7-25.4 added

Summary

The bill lets Alabama counties grant tax abatements on rollback ad valorem taxes for certain Alabama Jobs Act projects, with conditions including job creation, big upcoming capital spending, and municipal consent when inside a city.

What This Bill Does

It adds a new section that allows county governments to waive all or part of ad valorem taxes for property used for a qualifying project. Abatement is allowed only if the project meets defined criteria (qualifying project, required new jobs, and at least $100 million in planned capital expenditures) and, if the property is in a municipality, the municipality approves by resolution. The abatement must be documented in a written agreement with the property owner or user and filed with the Department of Revenue within 90 days, with details kept confidential unless the owner consents to disclosure. The act becomes effective immediately after the governor signs it.

Who It Affects

• County governments — may grant abatements to eligible projects.
• Property owners or project developers/users — may receive tax abatements on rollback ad valorem taxes.
• Municipalities — must consent to abatements for property within municipal boundaries.
• Alabama Department of Revenue — receives and records the abatement agreements and uses information for statistics and recordkeeping, keeping details confidential.

Key Provisions

• New Section 40-7-25.4 authorizes counties to grant abatements of taxes otherwise due under Section 40-7-25.3 for property within the county.
• Abatement criteria: (1) project is a qualifying project as defined in 40-18-372(1); (2) project will create the required number of new jobs per 40-18-372(2); (3) the area expects at least $100,000,000 in capital expenditures related to the project; (4) if within a municipality, the municipality must consent by resolution.
• Abatement must be set out in a written agreement between the county and the owner/user and filed with the Department of Revenue within 90 days of granting.
• Department of Revenue will use information for statistics and recordkeeping and keep details confidential unless the owner/user consents in writing.
• The act includes a severability clause and becomes effective immediately upon 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

Ad Valorem Tax