HB178 Alabama 2021 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Mike Ball
Republican
Session: Regular Session 2021
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: HB178 would authorize certain municipalities to levy a special ad valorem tax to pay debt service and fund public capital improvements, subject to voter approval and not exceeding the current lawful millage rate.
What This Bill Does
Eligible municipalities could levy and collect a special ad valorem tax to pay debt service on bonds. The tax could also directly fund the costs of public capital improvements and pay principal and interest on bonds or other securities financing those improvements, with a pay-as-you-go option at the existing lawful rate. The amendment would ratify and validate any prior levies for these purposes. An election would be held to approve the amendment, and the ballot description would explain the change.

Who It Affects
Residents and taxpayers in municipalities authorized under Amendment No. 8, who could be subject to a new or adjusted ad valorem tax to fund debt service and capital projects.
Municipal governments and bond issuers in those areas, who would gain authority to levy the tax and use proceeds to pay debt service and finance capital improvements.

Key Provisions
Provision 1: Allows eligible municipalities to levy and collect a special ad valorem tax to pay debt service on bonds and to fund public capital improvements, at a rate not exceeding the lawful millage; funds may also be used for pay-as-you-go financing of improvements.
Provision 2: Requires voter approval through an election to adopt the amendment and includes ratification, validation, and confirmation of prior levies for these purposes; ballot language must describe the changes.

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