HB253 Alabama 2020 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2020

Title

Municipalities, certain designated muns., levy of ad valorem tax for bonds to finance projects, use of proceeds for direct payments to finance capital improvements, const. amend.

Summary

HB253 would amend the Alabama Constitution to let certain municipalities levy an ad valorem tax to fund capital improvements, with options to pay debt service or to pay costs directly (pay-as-you-go), and to validate past tax actions.

What This Bill Does

The bill would authorize designated municipalities to levy and collect an ad valorem tax to pay debt service on bonds financing capital improvements. It would also allow the tax proceeds to be used directly to pay the costs of public capital improvements on a pay-as-you-go basis, at a rate not exceeding the municipality's lawful millage. Additionally, it would permit using the tax funds to pay the principal and interest on bonds, warrants, or other securities issued to finance or refinance the improvements. It would ratify and validate any prior levy of the tax for these purposes and require an election to approve the amendment.

Who It Affects

• Municipalities authorized under Amendment No. 8 to levy the special ad valorem tax (216.01) for debt service and capital improvements.
• Property owners and residents within those municipalities who would be taxed to fund capital improvements and related debt, with the tax rate limited to the lawful millage rate.

Key Provisions

• Authorizes each qualifying municipality to levy and collect an ad valorem tax to pay debt service on bonds financing capital improvements.
• Allows the tax to be used to directly pay the costs of public capital improvements on a pay-as-you-go basis at a rate not exceeding the lawful millage.
• Permits using the tax proceeds to pay the principal and interest on bonds, warrants, or other securities issued to finance or refinance the improvements.
• Ratifies, validates, and confirms any prior levy and collection of the tax for these purposes and requires an election to approve the amendment with ballot language.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities