HB456 Alabama 2023 Session

Summary

Primary Sponsor

David Cole

Republican

Session

Regular Session 2023

Title

Relating to Madison County and its municipalities; to provide for an impact fee to be collected by the county and its municipalities to offset the costs of expanding public infrastructure required by new development.

Summary

This bill would let Madison County and its municipalities charge an impact fee on new development to help pay for expanding public infrastructure.

What This Bill Does

It authorizes an impact fee per service unit on new development to fund government infrastructure like roads, stormwater, parks, public schools, and public safety facilities. The fee cannot exceed 1% of the estimated fair market value of the development after completion, using either the building permit value plus land value or a developer provided value, with an appraisal if there is disagreement; if two appraisals are within 10% they are averaged, otherwise a binding appraisal is used. Fees may be charged only once per unit, and credits may be provided for developer expenditures or public benefits; the county may share revenues with a municipality when collected in the municipality’s police jurisdiction; the fee becomes a lien and is collected at a defined point such as transfer, connection, building permit, or certificate of occupancy. Collected fees must be used for infrastructure within five years and refunded if not spent, unless delayed by acts of God or litigation; a public hearing and a finding that the fee will benefit the development are required before adoption.

Who It Affects

• Developers and builders of new development, who would pay the impact fee per service unit, potentially receive credits, and have the fee recorded as a lien on the property.
• Madison County and its municipalities, which would have the authority to levy, collect, share revenue, and spend the fees on government infrastructure, subject to public hearing and governing body findings.

Key Provisions

• Authorizes Madison County and municipalities to levy impact fees to fund government infrastructure.
• Defines government infrastructure and service units, sets a 1% cap based on estimated market value, and outlines valuation methods including appraisals.
• Allows credits for developer expenditures and public benefit; outlines procedures for approving credits.
• Allows county to share impact fee revenues with municipalities when collected in a municipality's police jurisdiction.
• Specifies collection timing (transfer of service unit, connection to water/sewer, building permit, or certificate of occupancy) and that fees are a lien on the property.
• Requires a public hearing and a governing body finding that the fee will benefit the development before adoption.
• Requires funds to be used for infrastructure within five years and provides refunds of unspent funds unless delayed by force majeure or litigation; includes exceptions.
• Effective date is the first day of the third month after passage and governor approval, or as otherwise provided by law.

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

Subjects

Madison County, authorize municipalities to collect building impact fee