HB407 Alabama 2025 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

2025 Regular Session

Title

Local redevelopment authorities, transient occupancy taxes use as payment in lieu of tax authorized, reporting

Summary

HB407 lets local redevelopment authorities collect transient occupancy taxes as payments in lieu of taxes and requires reporting these payments to the Department of Revenue.

What This Bill Does

The bill authorizes local redevelopment authorities to require and enforce payments in lieu of taxes for transient occupancy taxes, administered in parallel with other taxes. It also requires these authorities to report the PILOT payments to the Department of Revenue, which will compile and publish a yearly summary of the information. The Department may adopt rules to implement the act, and the bill takes effect on October 1, 2025.

Who It Affects

• Local redevelopment authorities and private users of projects within redevelopment areas: they would be allowed to enter into PILOT agreements for transient occupancy taxes and have the authority to collect and enforce those payments.
• Department of Revenue and local governments (cooperative districts, counties, municipalities): they would receive PILOT payments, the Department would publish annual summaries, and rules for implementation would be set or clarified.

Key Provisions

• Authorizes local redevelopment authorities to require payments in lieu of transient occupancy tax and to enforce them, administered parallel to state taxes.
• Requires authorities to report PILOT payments to the Department of Revenue annually; the Department will compile and publish a yearly summary.
• The Department of Revenue may adopt rules to implement the act.
• Effective date is October 1, 2025; all authority projects must be located wholly within the local redevelopment area.

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

Subjects

Economic Development