HB396 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Rod Scott
Democrat
Session: Regular Session 2019
Title: Geneva Co., special recording fee in office of judge of probate, provided for, distrib.
Summary: Class 1 municipalities’ industrial development boards can charge a small fee on tax abatements to fund development activities.
What This Bill Does
It amends Section 11-54-101 to authorize an industrial development board in a Class 1 municipality to charge an administrative fee on tax abatements granted under Title 40, Chapter 9B. The fee can be up to 0.25% of the total estimated investment amount, calculated for projects with up to $40 million in estimated investment (maximum fee around $100,000). The money collected must be kept by the board and used for economic or industrial development activities, including data mining and data-driven development projects, locating or developing industrial sites or parks, and other lawful uses.

Who It Affects
Class 1 municipalities with industrial development boards whose directors are elected by the municipality — these boards would be allowed to charge the new administrative fee.
Private entities, businesses, or other private users applying for tax abatements under Title 40, Chapter 9B — they would pay the new fee as part of the abatement process.

Key Provisions
The act applies only to Class 1 municipalities.
Amends Section 11-54-101 to authorize an administrative fee on tax abatements granted under Title 40, Chapter 9B.
The fee is capped at 0.25% of the total estimated investment amount for projects up to $40,000,000 (maximum fee approximately $100,000).
Fees collected must be retained by the industrial development board and used for economic or industrial development purposes, including data mining, data-driven projects, and locating or developing industrial sites or parks.
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: Class 1 Municipalities