House Bill 150 Alabama 2026 Session

Summary

Primary Sponsor

Margie WilcoxRepresentative

Republican

Session

2026 Regular Session

Title

Alabama Improvement Districts; to limit interest charged on assessments, county tax, and judges of probate to aid in the collection of assessments

Summary

HB150 would cap improvement district assessment interest at the bond rate and create a county-based collection system, with a 3% collection fee, subject to county approval.

What This Bill Does

Removes the improvement district board's ability to charge interest on assessments at a rate higher than the bonds' interest rate. Adds an optional alternative collection/enforcement mechanism allowing districts to petition the county commission to use county officials to collect and enforce assessments, in the same manner as delinquent ad valorem taxes, with a 3% collection fee. Requires certifications, notices to landowners, reporting, and district responsibility for accuracy; provides that the district reimburse the county for costs and that the authorization becomes effective October 1, 2026.

Who It Affects

• Property owners within Alabama improvement districts: their assessments would have interest limited to the bond rate and could be subject to the new county-based collection process with a 3% collection fee.
• Improvement Districts and county officials (county commissioners, tax assessor, tax collector, and judge of probate): could implement the alternative collection method, administer it, and handle costs, duties, and enforcement responsibilities.

Key Provisions

• Amends Section 11-99A-14 to remove the board's discretion to charge an interest rate on assessments higher than the bond rate used to fund the project.
• Adds Section 11-99A-14.1 to authorize districts to petition the county commission to use alternative collection/enforcement procedures, including involvement of the county tax assessor, tax collector, and judge of probate.
• Requires the district to certify and notify landowners, and to provide documentation and information to county officials; the district remains the party responsible for accuracy and for costs arising from disputes.
• Imposes a 3% collection fee to be charged by the county tax collecting official for collecting assessments, with proceeds deposited in a segregated account to support official duties, and requires the district to reimburse the county for costs.
• Requires the district to reimburse, indemnify, and hold harmless county officials for costs related to enforcement; effective date is October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue