SB179 Alabama 2022 Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

Regular Session 2022

Title

Community Development Districts, certain districts meeting certain criteria in unincorp. area of county, rate of taxation on sale of alcoholic beverages specified, Sec. 35-8B-1 am'd.

Summary

SB179 changes how alcohol sales are taxed in community development districts and expands what can qualify as a community development district in Alabama.

What This Bill Does

It amends Section 35-8B-1 so that the tax on the sale of alcoholic beverages inside any community development district is set at the same rate as the county’s beer and wine tax in the largest municipality in that county, with revenue distributed under Section 35-8B-5. It broadens and updates the definitions of 'community development district' to include many different types of private residential, commercial, and social districts across dry and wet counties, with detailed size, facility, and membership requirements. The bill includes rules about where alcohol can be sold within these districts and notes special conditions for certain district configurations, such as on-premises consumption and proximity to highways. It becomes effective on the first day of the third month after the Governor signs it into law.

Who It Affects

• Counties and their governments, which would collect and distribute alcohol tax revenue from CDDs at the rate of the largest municipality’s beer/wine tax.
• Developers and private property owners who want to create or operate a community development district, since the bill adds many new ways a district can qualify.
• Businesses inside CDDs that sell alcohol, because they would be taxed at the county rate tied to the largest municipality and subject to district-specific sales rules.
• Residents and users in or near CDDs, who could see changes in where alcohol is sold and what amenities or facilities exist in their district.

Key Provisions

• Tax rate alignment: Sets alcohol sale tax in CDDs at the same rate as beer and wine tax in the county's largest municipality, distributed per 35-8B-5.
• Expanded CDD definitions: Introduces numerous new categories of CDDs with specific acreage, facilities (golf course, marina, clubhouse, restaurants), and membership requirements across various county types (dry, wet, with or without municipal boundaries).
• Sale restrictions and locations: Includes rules about where alcohol can be sold within different CDD configurations (e.g., on-premises consumption, distance restrictions from highways, Sunday sale considerations in certain districts).
• County participation: Requires counties to participate in tax and license-fee distributions for CDDs under Chapters 3 and 3A of Title 28.
• Revenue offsets: Alcohol revenues from CDDs may offset in-lieu-of-TVA taxes, with distributions to TVA-served counties.
• Municipal wet/dry changes: If a pre-2014 CDD becomes a municipality, the area becomes wet and alcohol sales are authorized to the full extent; voters must be notified that the new municipality will be wet.

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

Subjects

Community Development Districts