Alabama 2022 Regular Session

Alabama House Bill HB481 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 HB481
2	2	2 217601-1
3	3	3 By Representative Scott
4	4	4 RFD: County and Municipal Government
5	5	5 First Read: 09-MAR-22
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7	7	Page 0 1 217601-1:n:02/22/2022:PMG/bm LSA2022-680
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14	14	8 SYNOPSIS: Under existing law, tax increment financing
15	15	9 is an economic development mechanism that allows
16	16	10 local governments to designate a portion of the
17	17	11 county or municipality as a tax increment district
18	18	12 and apply certain property tax revenues above a
19	19	13 baseline established when the tax increment
20	20	14 district was established, to redevelop or
21	21	15 revitalize the area until the tax increment
22	22	16 district expires after 30 years of existence.
23	23	17 This bill would provide further for what
24	24	18 constitutes a blighted or economically distressed
25	25	19 area for purposes of establishing a tax increment
26	26	20 district.
27	27	21 This bill would allow the redevelopment or
28	28	22 revitalization project to continue through the
29	29	23 creation of a subsequent tax increment district
30	30	24 after expiration of the existing district, but
31	31	25 retain the original baseline.
32	32	Page 1 1 This bill would also make nonsubstantive,
33	33	2 technical revisions to update the existing code
34	34	3 language to current style.
35	35	4
36	36	5 A BILL
37	37	6 TO BE ENTITLED
38	38	7 AN ACT
39	39	8
40	40	9 To amend Sections 11-99-2, 11-99-4, 11-99-5,
41	41	10 11-99-6, 11-99-8 and 11-99-10, Code of Alabama 1975; relating
42	42	11 to tax increment districts; to provide further for the
43	43	12 projects in a tax increment district and the project costs
44	44	13 therefor; to provide further for the determination of the tax
45	45	14 increment base for a tax increment district; to provide
46	46	15 further for the collection, payment, and use of tax
47	47	16 increments; and to make nonsubstantive, technical revisions to
48	48	17 update the existing code language to current style.
49	49	18 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
50	50	19 Section 1. Sections 11-99-2, 11-99-4, 11-99-5,
51	51	20 11-99-6, 11-99-8, and 11-99-10, Code of Alabama 1975, are
52	52	21 amended to read as follows:
53	53	22 "§11-99-2.
54	54	23 "As used in this chapter, the following terms shall
55	55	24 have the following meanings:
56	56	25 "(1) BLIGHTED OR ECONOMICALLY DISTRESSED AREA. Any
57	57	26 of the following:
58	58	Page 2 1 "a. An Any area in which the structures, buildings,
59	59	2 or improvements, by reason of dilapidation, deterioration,
60	60	3 age, or obsolescence,; inadequate provision for ventilation,
61	61	4 light, air, sanitation, or open spaces,; high density of
62	62	5 population and overcrowding,; or the existence of conditions
63	63	6 which that endanger life or property by fire and other
64	64	7 causes,; or any combination of such factors, are conducive to
65	65	8 ill health, transmission of disease, infant mortality,
66	66	9 juvenile delinquency, or crime, and are detrimental to the
67	67	10 public health, safety, morals, or welfare, or.
68	68	11 "b. Any area which that by reason of the presence of
69	69	12 a substantial number of substandard, slum, deteriorated, or
70	70	13 deteriorating structures,; predominance of defective or
71	71	14 inadequate street layout,; faulty lot layout in relation to
72	72	15 size, adequacy, accessibility, or usefulness,; unsanitary or
73	73	16 unsafe conditions,; deterioration of site or other
74	74	17 improvements,; diversity of ownership,; tax or special
75	75	18 assessment delinquencies exceeding the fair value of the
76	76	19 land,; defective or unusual conditions of title,; or the
77	77	20 existence of conditions which that endanger life or property
78	78	21 by fire and other causes,; or any combination of the
79	79	22 foregoing, substantially impairs or arrests the sound economic
80	80	23 growth of an area, retards hinders the provision of housing
81	81	24 accommodations, or constitutes an economic or social liability
82	82	25 and is a detriment to the public health, safety, morals, or
83	83	26 welfare in its present condition and use, or.
84	84	Page 3 1 "c. Any area which that is predominantly open and
85	85	2 which because of obsolete platting, diversity of ownership,
86	86	3 deterioration of structures or of site improvements, or
87	87	4 otherwise, substantially impairs or arrests the sound economic
88	88	5 growth of an area, or.
89	89	6 "d. Any area which that the local governing body:
90	90	7 (i) Determines, which determination shall not be subject to
91	91	8 judicial review except after a showing of fraud, corruption,
92	92	9 or undue influence, is in need of redevelopment,
93	93	10 rehabilitation, or revitalization to provide for the economic
94	94	11 growth and development of the area, or (ii) certifies is in
95	95	12 need of redevelopment or rehabilitation as a result of flood,
96	96	13 fire, hurricane, tornado, earthquake, storm, or other
97	97	14 catastrophe respecting which the Governor of the state has
98	98	15 certified the need for disaster assistance under federal law,
99	99	16 or.
100	100	17 "e. Any area containing excessive vacant land on
101	101	18 which structures were previously located, or; on which are
102	102	19 located abandoned or vacant buildings or old buildings, or;
103	103	20 where excessive vacancies exist in existing buildings, or;
104	104	21 which contains substandard structures,; or with respect to
105	105	22 which there exist delinquencies in payment of real property
106	106	23 taxes.
107	107	24 "(2) DEFERRED TAX RECIPIENT. Each taxing authority
108	108	25 which that receives ad valorem taxes with respect to property
109	109	26 located in a proposed tax increment district.
110	110	Page 4 1 "(3) ENHANCED USE LEASE AREA. Any area of a military
111	111	2 installation which contains underutilized real or personal
112	112	3 property, or both, that is leased by a secretary of a military
113	113	4 department to a lessee pursuant to the authority provided in
114	114	5 Title 10 U.S.C. § 2667.
115	115	6 "(4) LOCAL FINANCE OFFICER. The legally authorized
116	116	7 officer or agent responsible for receipt and disbursement of
117	117	8 the revenues of a taxing authority.
118	118	9 "(5) LOCAL GOVERNING BODY. The governing body of a
119	119	10 county or municipality which proposes to create or has created
120	120	11 a tax increment district.
121	121	12 "(6) MAJOR 21ST CENTURY MANUFACTURING ZONE. Any area
122	122	13 aggregating not less than 250 contiguous acres of real
123	123	14 property determined by a local governing body to be meet all
124	124	15 of the following criteria:
125	125	16 "a. Is located, in whole or part, within its
126	126	17 boundaries or corporate limits,.
127	127	18 "b. Is suitable for the site of an automotive,
128	128	19 automotive-industry related, aviation, aviation-industry
129	129	20 related, medical, pharmaceutical, semiconductor, computer,
130	130	21 electronics, energy conservation, cyber technology, or
131	131	22 biomedical industry manufacturing facility or facilities, and.
132	132	23 "c. Is an area within which not less than one
133	133	24 hundred million dollars ($100,000,000) of capital expenditure
134	134	25 in connection with the establishment, expansion, construction,
135	135	26 equipping, development, rehabilitation, or redevelopment of
136	136	27 such a the facility or facilities is anticipated to be made
137	137	Page 5 1 based upon representations and information provided by the
138	138	2 anticipated user or users of the facility or facilities and
139	139	3 such other information as the local governing body shall have
140	140	4 available to it and deems appropriate.
141	141	5 "(7) MUNICIPALITY. Any incorporated municipality in
142	142	6 this state.
143	143	7 "(8) PROJECT. Undertakings and activities of a
144	144	8 public entity in a tax increment district for any one or more
145	145	9 of the following:
146	146	10 "a. As determined by the local governing body, which
147	147	11 determination shall not be subject to judicial review except
148	148	12 after a showing of fraud, corruption, or undue influence, the
149	149	13 elimination and prevention of the development or spread of
150	150	14 blight in, or the redevelopment or revitalization of, a
151	151	15 blighted or economically distressed area, including, but not
152	152	16 limited to, property acquisition, property clearance,
153	153	17 development, preservation, redevelopment, rehabilitation,
154	154	18 renovation, or conservation, or a combination or part thereof,
155	155	19 in accordance with a project plan.
156	156	20 "b. the The utilization of underutilized real or
157	157	21 personal property, or both, in an enhanced use lease area, and
158	158	22 may include including, but not limited to, property
159	159	23 acquisition, property clearance, development, redevelopment,
160	160	24 rehabilitation, or conservation, or a combination or part
161	161	25 thereof, in accordance with a project plan, or.
162	162	26 "c. the The utilization of underutilized real
163	163	27 property in an area determined by a local governing body to be
164	164	Page 6 1 a Major 21st Century Manufacturing Zone, and may include
165	165	2 including, but not limited to, property acquisition,; property
166	166	3 clearance,; development, including, without limitation, public
167	167	4 infrastructure improvements and any other improvements for the
168	168	5 construction and equipping of automotive, automotive-industry
169	169	6 related, aviation, aviation-industry related, medical,
170	170	7 pharmaceutical, semiconductor, computer, electronics, energy
171	171	8 conservation, cyber technology, or biomedical industry
172	172	9 manufacturing facilities,; or the redevelopment,
173	173	10 rehabilitation, or conservation, or a combination or part
174	174	11 thereof, in accordance with a project plan.
175	175	12 "(9) PROJECT COSTS. Any expenditures made or
176	176	13 estimated to be made or monetary obligations incurred or
177	177	14 estimated to be incurred by a public entity, which in the case
178	178	15 of expenditures for or within a Major 21st Century
179	179	16 Manufacturing Zone may be incurred directly by the public
180	180	17 entity or by a private entity with funds granted by, or
181	181	18 otherwise made available from, a public entity, which are
182	182	19 listed in a project plan as costs of public works or
183	183	20 improvements or, in the case of improvements within a Major
184	184	21 21st Century Manufacturing Zone, public works or improvements
185	185	22 or private improvements, within a tax increment district, plus
186	186	23 any costs incidental thereto, diminished by any special
187	187	24 assessments, received or reasonably expected to be received by
188	188	25 the public entity in connection with the implementation of the
189	189	26 project plan. Project costs include, but are not limited to,
190	190	27 all of the following:
191	191	Page 7 1 "a. Capital costs, including the costs of the
192	192	2 acquisition, installation, or construction of public works or
193	193	3 improvements, new buildings, facilities or improvements,
194	194	4 structures, and fixtures, the preservation and renovation of
195	195	5 properties of historic significance and facades of properties,
196	196	6 the demolition, alteration, remodeling, repair, or
197	197	7 reconstruction of existing buildings, structures, facilities,
198	198	8 and fixtures, the improvement, maintenance, repair,
199	199	9 renovation, and replacement of property pursuant to a project
200	200	10 plan, the acquisition of equipment, the acquisition, clearing,
201	201	11 and grading of land, environmental remediation of real
202	202	12 property, and the acquisition of interests in land;.
203	203	13 "b. Financing costs, including all interest paid to
204	204	14 holders of tax increment obligations during the period of
205	205	15 implementation of the project plan, the costs of any form of
206	206	16 credit enhancement, printing and trustee costs, and any
207	207	17 premium paid in excess of the principal amount thereof because
208	208	18 of the redemption of such the obligations prior to maturity;.
209	209	19 "c. Real property assembly costs, meaning any
210	210	20 deficit resulting from the sale or lease as lessor by the
211	211	21 public entity of real or personal property within a tax
212	212	22 increment district for consideration which is less than its
213	213	23 cost to the public entity;.
214	214	24 "d. Professional service costs, including those
215	215	25 costs incurred for architectural, planning, engineering,
216	216	26 fiscal, underwriting, and legal advice and services;, and
217	217	27 consulting and management services.
218	218	Page 8 1 "e. Imputed administrative costs, including
219	219	2 reasonable charges for the time spent by officers and
220	220	3 employees of the public entity in connection with the
221	221	4 implementation of a project plan;.
222	222	5 "f. Relocation costs, including those relocation
223	223	6 payments made following condemnation under Chapter 1A of Title
224	224	7 18;.
225	225	8 "g. Organizational costs, including the costs of
226	226	9 conducting environmental impact and other studies and the
227	227	10 costs of informing the public with respect to the creation of
228	228	11 tax increment districts and the implementation of project
229	229	12 plans;.
230	230	13 "h. The amount of any contributions made in
231	231	14 connection with the implementation of the project plan that
232	232	15 are within limits prescribed by law;.
233	233	16 "i. Payments made, at the discretion of the local
234	234	17 governing body, which are to be necessary or convenient to the
235	235	18 creation of tax increment districts or the implementation and
236	236	19 management of project plans; and.
237	237	20 "j. For purposes of any tax increment district in
238	238	21 which not less than 50 percent, by area, of the real property
239	239	22 within the tax increment district is an enhanced use lease
240	240	23 area, project costs shall also include all costs described in
241	241	24 this subdivision which are expended by a public entity or a
242	242	25 developer within three years immediately preceding the date of
243	243	26 the creation of such the tax increment district.
244	244	Page 9 1 "(10) PROJECT PLAN. The properly approved plan by
245	245	2 the public entity creating a tax increment district for the
246	246	3 development, or redevelopment, or revitalization of a tax
247	247	4 increment district, including all properly approved amendments
248	248	5 thereto.
249	249	6 "(11) PUBLIC ENTITY. Any municipality or county in
250	250	7 the state.
251	251	8 "(12) TAX INCREMENT. That amount obtained by
252	252	9 multiplying the total revenue derived from ad valorem taxes
253	253	10 levied by all local taxing authorities on all taxable property
254	254	11 within a tax increment district in any tax year by a fraction
255	255	12 having a numerator equal to that tax year's market value of
256	256	13 all taxable property in the district minus the tax increment
257	257	14 base and a denominator equal to that tax year's equalized
258	258	15 value of all taxable property in the district. In any tax
259	259	16 year, a tax increment is positive if the tax increment base is
260	260	17 less than the aggregate value of taxable property as equalized
261	261	18 by the Department of Revenue; it is negative if the base
262	262	19 exceeds such that value.
263	263	20 "(13) TAX INCREMENT BASE. The aggregate value, as
264	264	21 equalized by the Department of Revenue, of all taxable
265	265	22 property located within a tax increment district on the date
266	266	23 the district is created, determined as provided in Section
267	267	24 11-99-5.
268	268	25 "(14) TAX INCREMENT DISTRICT. A contiguous
269	269	26 geographic area within the boundaries of a public entity
270	270	27 defined and created by resolution of the local governing body.
271	271	Page 10 1 "(15) TAX INCREMENT FUND. A fund into which all tax
272	272	2 increments not retained by a taxing authority as provided by
273	273	3 Section 11-99-10(b)(a) are paid, and from which money is
274	274	4 disbursed to satisfy claims of holders of tax increment
275	275	5 obligations issued for the tax increment district.
276	276	6 "(16) TAX INCREMENT OBLIGATIONS. Bonds, warrants,
277	277	7 notes, or other evidences of indebtedness issued by a public
278	278	8 entity to fund all or any project costs.
279	279	9 "(17) TAXABLE PROPERTY. All real and personal
280	280	10 property located in a tax increment district which is subject
281	281	11 to ad valorem taxation on the date of adoption of the
282	282	12 resolution creating the tax increment district.
283	283	13 "(18) TAXING AUTHORITY.
284	284	14 "a. For tax increment districts in which not less
285	285	15 than 50 percent, by area, of the real property within the tax
286	286	16 increment district is a blighted or economically distressed
287	287	17 area, taxing authority the term means any municipality,
288	288	18 county, or other taxing authority which has the power to levy
289	289	19 taxes on property within the tax increment districts.
290	290	20 "b. For tax increment districts in which not less
291	291	21 than 50 percent, by area, of the real property within the tax
292	292	22 increment district is an enhanced use lease area, taxing
293	293	23 authority the term means the state or any municipality,
294	294	24 county, or other taxing authority which that has the power to
295	295	25 levy taxes on property within the tax increment district.
296	296	26 "c. For tax increment districts in which not less
297	297	27 than 50 percent, by area, of the real property within the tax
298	298	Page 11 1 increment district is a Major 21st Century Manufacturing Zone,
299	299	2 "taxing authority" the term means the state or any
300	300	3 municipality, county, or other taxing authority which that has
301	301	4 the power to levy taxes on property within the tax increment
302	302	5 district.
303	303	6 "§11-99-4.
304	304	7 "In order to exercise its powers under this chapter,
305	305	8 a public entity shall take the following steps:
306	306	9 "(1) The local governing body shall hold a public
307	307	10 hearing at which all interested parties are afforded a
308	308	11 reasonable opportunity to express their views on the concept
309	309	12 of tax increment financing, on the proposed creation of a tax
310	310	13 increment district and its proposed boundaries, and its
311	311	14 benefits to the public entity. Notice of the hearing shall be
312	312	15 published in a newspaper of general circulation in either the
313	313	16 county or in the city, as the case may be, in which the
314	314	17 proposed tax increment district is to be located with such
315	315	18 notice to be published at least twice in the 15-day period
316	316	19 immediately preceding the date of the hearing. Prior to
317	317	20 publication, a copy of the notice shall be sent by first class
318	318	21 mail to the chief executive officer of each deferred tax
319	319	22 recipient.
320	320	23 "(2) In addition to the notice required by
321	321	24 subdivision (1) of this section, and either before or after
322	322	25 such the public hearing, the local governing body shall make a
323	323	26 written submission to the governing body of each deferred tax
324	324	27 recipient. The submission shall include a description of the
325	325	Page 12 1 proposed boundaries of the tax increment district, the
326	326	2 tentative plans for the development, or redevelopment, or
327	327	3 revitalization of the tax increment district, and an estimate
328	328	4 of the general impact of the proposed project plan on property
329	329	5 values and tax revenues. Not later than the fifteenth 15th day
330	330	6 after the date on which the notice required by subdivision (1)
331	331	7 of this section is mailed, each deferred tax recipient shall
332	332	8 designate a representative empowered to meet with the local
333	333	9 governing body to discuss the project plan and the tax
334	334	10 increment financing and shall notify the local governing body
335	335	11 of its designation. Failure of any deferred tax recipient to
336	336	12 designate a representative within the 15-day period, or to
337	337	13 notify the local governing body of its designation, shall not
338	338	14 prevent the local governing body from proceeding hereunder. If
339	339	15 a deferred tax recipient which who has failed to so designate
340	340	16 a representative shall thereafter designate designates a
341	341	17 representative and shall notify notifies the local governing
342	342	18 body of such the designation, such the representative shall be
343	343	19 entitled to notice of any meetings held thereafter pursuant to
344	344	20 this section, and shall be entitled to attend such the
345	345	21 meetings, but shall have no right to have matters discussed
346	346	22 again which have already been discussed. The local governing
347	347	23 body shall call a meeting, or meetings, of the representatives
348	348	24 of the deferred tax recipients to be held at any time after 20
349	349	25 days from the mailing notice referred to in subdivision (1) of
350	350	26 this section. Each representative shall be notified of each
351	351	27 meeting at least three days before it the meeting is to be
352	352	Page 13 1 held, but such notice may be waived. At the meetings, the
353	353	2 local governing body and the representatives of the deferred
354	354	3 tax recipients may discuss the boundaries of the tax increment
355	355	4 district, development within such the tax increment district,
356	356	5 the exclusion of particular parcels of property from such the
357	357	6 district, and tax collection for such the district. On the
358	358	7 motion of the local governing body any other matter relevant
359	359	8 to the proposed tax increment district may be discussed.
360	360	9 "(3) The local governing body shall adopt a
361	361	10 resolution, which need not be published, which does all of the
362	362	11 following:
363	363	12 "a. Describes the boundaries of the tax increment
364	364	13 district with sufficient definiteness to identify with
365	365	14 ordinary and reasonable certainty the territory included,
366	366	15 which shall include only those whole units of property, other
367	367	16 than publicly owned property such as streets, easements, and
368	368	17 rights-of-ways rights-of-way, assessed for general property
369	369	18 tax purposes and, if the public entity is a county, which
370	370	19 shall include only those areas which that lie outside the
371	371	20 corporate limits of any municipality, unless the governing
372	372	21 body of a municipality has consented to the inclusion of land
373	373	22 within its corporate limits within a tax increment district
374	374	23 formed by a county;.
375	375	24 "b. Creates the tax increment district as of a given
376	376	25 date after the date of adoption of the resolution, which date
377	377	26 of creation of the tax increment district may be a date
378	378	27 subsequent to the date of expiration of the period of duration
379	379	Page 14 1 of an existing tax increment district of the public entity,
380	380	2 and fixes the period for its duration, which may be for a
381	381	3 period not to exceed 30 years from the date of creation of the
382	382	4 tax increment district in the case of a tax increment district
383	383	5 in which not less than 50 percent, by area, of the real
384	384	6 property within the tax increment district is a blighted or
385	385	7 economically distressed area, and which may be for a period
386	386	8 not to exceed 35 years from the date of creation of the tax
387	387	9 increment district in the case of a tax increment district in
388	388	10 which not less than 50 percent, by area, of the real property
389	389	11 within the tax increment district is an enhanced use lease
390	390	12 area or a Major 21st Century Manufacturing Zone, unless an
391	391	13 amendment is made to the project plan under subdivision (7) of
392	392	14 this section;.
393	393	15 "c. Assigns a name to the tax increment district for
394	394	16 identification purposes, such as "tax increment district
395	395	17 number one";.
396	396	18 "d. Contains findings, which shall not be subject to
397	397	19 judicial review except after a showing of fraud, corruption,
398	398	20 or undue influence, that:
399	399	21 "1. Not less than 50 percent, by area, of the real
400	400	22 property within the tax increment district is: either (i) a
401	401	23 blighted area and is in In need of rehabilitation,
402	402	24 redevelopment, revitalization, or conservation work, or (ii)
403	403	25 an enhanced use lease area, or (iii) a Major 21st Century
404	404	26 Manufacturing Zone; and
405	405	Page 15 1 "2. The aggregate value of equalized taxable
406	406	2 property in the district plus all existing districts created
407	407	3 by the public entity does not exceed 10 percent of the total
408	408	4 value of equalized taxable property within the public entity
409	409	5 or 50 percent if the public entity is a Class 3 municipality.
410	410	6 Provided, however, that equalized taxable property located
411	411	7 within the boundaries of a military reservation, jurisdiction
412	412	8 over which has been ceded to the United States pursuant to
413	413	9 Section 42-3-1, shall be excluded from aggregated value.
414	414	10 "(4) The local governmental body shall prepare and
415	415	11 adopt a project plan for each tax increment district. The plan
416	416	12 shall include a statement listing the proposed projects,
417	417	13 including, without limitation and if applicable, the kind,
418	418	14 number, and location of all proposed public works or
419	419	15 improvements or, in the case of a Major 21st Century
420	420	16 Manufacturing Zone, public works or improvements or private
421	421	17 improvements, within the district; a detailed list of
422	422	18 estimated project costs; and a description of the methods of
423	423	19 financing all estimated project cost costs and the time when
424	424	20 related costs or monetary obligations are to be incurred. For
425	425	21 purposes of this chapter, any work or improvement for a
426	426	22 military installation and located within an enhanced use lease
427	427	23 area shall be deemed to be for public uses and purposes. The
428	428	24 project plan shall also include: A map showing existing uses
429	429	25 and condition of real property in the district; a map or
430	430	26 description showing proposed improvements and uses therein;
431	431	27 proposed changes of zoning, master map plan, building code,
432	432	Page 16 1 and other ordinances or resolutions affecting the district; a
433	433	2 list of estimated nonproject costs; and a proposed plan for
434	434	3 the relocation of any families, persons, and businesses to be
435	435	4 temporarily or permanently displaced from housing or
436	436	5 commercial facilities in the district by implementation of the
437	437	6 plan.
438	438	7 "(5) The local governing body shall certify, which
439	439	8 certification shall not be subject to judicial review except
440	440	9 after a showing of fraud, corruption, or undue influence,
441	441	10 before approving the project plan that:
442	442	11 "a. The proposed tax increment district on the whole
443	443	12 has not been subject to growth and development through
444	444	13 investment by private enterprise and it is not reasonable to
445	445	14 anticipate that the land in the district will be developed
446	446	15 without the adoption of the project plan;
447	447	16 "b. a. A feasible method exists for the relocation
448	448	17 and compensation of any individuals, families, and businesses
449	449	18 that will be displaced by the project in decent, safe, and
450	450	19 sanitary accommodations within their means and without undue
451	451	20 hardship to such individuals, families, and businesses;
452	452	21 "c. b. The project plan conforms to the applicable
453	453	22 master plan of the local entity, (if there is one); and
454	454	23 "d. c. The project plan will afford maximum
455	455	24 opportunity, consistent with the sound needs of the public
456	456	25 entity as a whole, for the rehabilitation, or redevelopment,
457	457	26 or revitalization of the tax increment district by private
458	458	27 enterprise.
459	459	Page 17 1 "(6) A copy of the project plan shall be mailed to
460	460	2 the governing body of each deferred tax recipient, before
461	461	3 approval of the project plan.
462	462	4 "(7) The local governing body may at any time adopt
463	463	5 an amendment to a project plan by complying with the
464	464	6 procedures for the original adoption of a project plan.
465	465	7 "(8) The public entity that created the tax
466	466	8 increment district, and each deferred tax recipient with
467	467	9 respect to the tax increment district, notwithstanding any
468	468	10 provision in this chapter to the contrary, by written mutual
469	469	11 agreement duly authorized, executed, and delivered thereby,
470	470	12 may establish an advisory board for the tax increment district
471	471	13 composed of the mayor or the chair of the county commission of
472	472	14 the public entity, as appropriate, a member of the governing
473	473	15 body of the public entity that represents the largest area in
474	474	16 the tax increment district, and other members as the
475	475	17 respective governing body, or its designee, of each deferred
476	476	18 tax recipient may appoint; provided a majority of the members
477	477	19 of an advisory board must be members of the governing body of
478	478	20 the public entity.
479	479	21 "§11-99-5.
480	480	22 "(a) Upon the creation of a tax increment district
481	481	23 or adoption of any amendment pursuant to subsection (c) of
482	482	24 this section, the The tax increment base shall be determined
483	483	25 as provided in this section.
484	484	26 "(b) Upon application in writing by the local
485	485	27 finance officer, the tax assessor, (or the officer of the
486	486	Page 18 1 county performing the duties of a tax assessor), for each
487	487	2 county in which any part of the district is located shall
488	488	3 determine, according to his or her best judgment from all
489	489	4 sources available to him or her, the full aggregate value of
490	490	5 the taxable property in the district located in that county as
491	491	6 of the date of creation of the tax increment district. The
492	492	7 aggregate valuation from all such tax assessors or other such
493	493	8 public officials, upon certification to the local finance
494	494	9 officer, shall constitute the tax increment base of the
495	495	10 district; provided, however, if a public entity creates a
496	496	11 district that is to succeed and continue the programs and
497	497	12 project plans for redevelopment and revitalization of property
498	498	13 in an existing tax increment district upon its expiration, the
499	499	14 public entity and each deferred tax recipient with respect to
500	500	15 the successor tax increment district, notwithstanding any
501	501	16 provision in this chapter to the contrary, by written mutual
502	502	17 agreement duly authorized, executed, and delivered thereby,
503	503	18 may agree that the aggregate value of all taxable property
504	504	19 included in both the expiring district and the successor
505	505	20 district shall be the aggregate value of the taxable property
506	506	21 as originally determined for the tax increment base of the
507	507	22 expiring district as of the date of creation of the expiring
508	508	23 district and without redetermination of the value of the
509	509	24 taxable property as of the date of creation of the successor
510	510	25 district or some other date.
511	511	26 "(c) If the public entity creating that created a
512	512	27 tax increment district in which not less than 50 percent, by
513	513	Page 19 1 area, of the real property within the tax increment district
514	514	2 is a blighted or economically distressed area adopts an
515	515	3 amendment to the original project plan for such the tax
516	516	4 increment district which that includes additional project
517	517	5 costs for which tax increments may be received by such the
518	518	6 public entity, the tax increment base for the district shall
519	519	7 not be redetermined pursuant to subsection (b) of this section
520	520	8 as of 90 days following the effective date of the amendment,
521	521	9 except that if the effective date of the amendment is October
522	522	10 1 of any year, the redetermination shall be made on that date.
523	523	11 The tax increment base as redetermined under this subsection
524	524	12 shall be effective for the purposes of this chapter only if it
525	525	13 exceeds the original tax increment base determined under
526	526	14 subsection (b) of this section.
527	527	15 "(d) If the public entity creating that created a
528	528	16 tax increment district in which not less than 50 percent, by
529	529	17 area, of the real property within the tax increment district
530	530	18 is an enhanced use lease area or a Major 21st Century
531	531	19 Manufacturing Zone adopts an amendment to the original project
532	532	20 plan for such the tax increment district which that includes
533	533	21 additional project costs for which tax increments may be
534	534	22 received by such the public entity or an expansion of the tax
535	535	23 increment district, the tax increment base for the district
536	536	24 shall not be redetermined.
537	537	25 "(e) There shall be a rebuttable presumption that
538	538	26 any property within a tax increment district, acquired or
539	539	27 leased as lessee by the public entity or any agency or
540	540	Page 20 1 instrumentality thereof within one year immediately preceding
541	541	2 the date of the creation of the district, was so acquired or
542	542	3 leased in contemplation of the creation of the district. The
543	543	4 presumption may be rebutted by the public entity with proof
544	544	5 that the property was so leased or acquired primarily for a
545	545	6 purpose other than to reduce the tax increment base. If the
546	546	7 presumption is not rebutted, in determining the tax increment
547	547	8 base of the district, but for no other purpose, the taxable
548	548	9 status of such the property shall be determined as though such
549	549	10 the lease or acquisition had not occurred.
550	550	11 "(f) The local tax assessor or person performing his
551	551	12 or her duties shall identify upon the tax records prepared by
552	552	13 him or her under Chapter 7 of Title 40 those parcels of
553	553	14 property which are within each existing tax increment
554	554	15 district, specifying the name of each district. A similar
555	555	16 notation shall also appear on the tax records made by the
556	556	17 local finance officer.
557	557	18 "(g) The Department of Revenue shall annually give
558	558	19 notice to the designated finance officer of all taxing
559	559	20 authorities levying taxes on property within each district as
560	560	21 to both the assessed and equalized value of the property and
561	561	22 the assessed and equalized value of the tax increment base.
562	562	23 The notice shall state that the taxes collected in excess of
563	563	24 the base will be paid to the public entity.
564	564	25 "§11-99-6.
565	565	26 "(a) Positive tax increments of a tax increment
566	566	27 district shall be allocated and paid over to the public entity
567	567	Page 21 1 which created the district for each year commencing on the
568	568	2 October 1 following the date when the district is created
569	569	3 until the earlier of:
570	570	4 "(1) That time, after: (i) The period of duration of
571	571	5 the tax increment district, as established pursuant to this
572	572	6 chapter, has expired, and (ii) the completion of all projects
573	573	7 and public improvements specified in, or purposes of, the
574	574	8 project plan or amendments thereto, when the public entity has
575	575	9 received aggregate tax increments from the district in an
576	576	10 amount equal to the aggregate of all expenditures previously
577	577	11 made or monetary obligations previously incurred for project
578	578	12 costs for the district; or
579	579	13 "(2) Thirty-five years after the last expenditure
580	580	14 identified in the project plan is made. No expenditure may be
581	581	15 provided for in the project plan to be made more than five
582	582	16 years after the district is created, except as may be provided
583	583	17 in an amendment to the project plan, and except in Class 3
584	584	18 municipalities where such the expenditures may be made not
585	585	19 more than 10 years thereafter if so provided and in tax
586	586	20 increment districts in which not less than 50 percent, by
587	587	21 area, of the real property within the tax increment district
588	588	22 is an enhanced use lease area where such the expenditures may
589	589	23 be made not more than 15 years thereafter if so provided,
590	590	24 unless an amendment is adopted by the local governing body
591	591	25 under subdivision (7) of Section 11-99-4.
592	592	26 "(b) Notwithstanding any other provision of law,
593	593	27 every officer charged by law to collect and pay over or retain
594	594	Page 22 1 local general property taxes in the case of a tax increment
595	595	2 district in which not less than 50 percent, by area, of the
596	596	3 real property within the tax increment district is a blighted
597	597	4 or economically distressed area, or state and local general
598	598	5 property taxes in the case of a tax increment district in
599	599	6 which not less than 50 percent, by area, of the real property
600	600	7 within the tax increment district is an enhanced use lease
601	601	8 area or a Major 21st Century Manufacturing Zone, shall first,
602	602	9 on the next settlement date provided by law, pay over to the
603	603	10 local finance officer out of all such taxes which have been
604	604	11 collected, that portion which that represents a tax increment
605	605	12 allocable to a tax increment district, identifying the amount
606	606	13 for each district.
607	607	14 "(c) All tax increments received for a tax increment
608	608	15 district shall, upon receipt by the local finance officer,
609	609	16 shall be deposited into the tax increment fund for that
610	610	17 district. The local finance officer may deposit additional
611	611	18 moneys monies into the fund pursuant to an appropriation by
612	612	19 the local governing body. Moneys Monies shall be paid out of
613	613	20 the fund only for direct payment of, or to reimburse the
614	614	21 public entity for payments theretofore made by it for
615	615	22 principal of or interest on tax increment obligations for that
616	616	23 district if such the obligations are general obligations of
617	617	24 the public entity, or to satisfy claims of holders of tax
618	618	25 increment obligations issued for that district, or for direct
619	619	26 payment of, or to reimburse the public entity for payments
620	620	27 theretofore made by it the public entity that are used to pay
621	621	Page 23 1 project costs. Subject to any agreement with security holders,
622	622	2 moneys monies in the fund may be temporarily invested in the
623	623	3 same manner as other surplus funds of the public entity. After
624	624	4 the principal of and interest on all tax increment obligations
625	625	5 of the district have been paid or provided for, subject to any
626	626	6 agreement with security holders, if there remain remains in
627	627	7 the fund any moneys monies, they shall be paid over to the
628	628	8 chief finance officer of the state, each county, each
629	629	9 municipality, each school district, and to the general fund of
630	630	10 the public entity in such amounts as are due to each
631	631	11 respectively, having due regard for what portion of such
632	632	12 moneys these monies, if any, represents tax increments not
633	633	13 allocated to the public entity and what portion thereof, if
634	634	14 any, represents voluntary deposits of the public entity into
635	635	15 the fund.
636	636	16 "§11-99-8.
637	637	17 "(a) Payment of project costs may be made by any of
638	638	18 the following methods or any combination thereof:
639	639	19 "(1) Payment from the tax increment fund of the tax
640	640	20 increment district if the purpose of the payment is one
641	641	21 provided for in Section 11-99-6 hereof;.
642	642	22 "(2) Payment out of the general funds of the public
643	643	23 entity creating a tax increment district, such the payments
644	644	24 being used either directly by the public entity to pay such
645	645	25 the project costs or used by a third party recipient of such
646	646	26 funds to pay such the project costs if within a Major 21st
647	647	27 Century Manufacturing Zone;.
648	648	Page 24 1 "(3) Payment out of the proceeds of the sale of
649	649	2 warrants, bonds, or notes (whether public improvement bonds,
650	650	3 warrants, or notes,; mortgage bonds, warrants, or notes,; or
651	651	4 certificates, revenue bonds, warrants, or notes,; or
652	652	5 otherwise) issued by the public entity creating a tax
653	653	6 increment district, such the payments being used either
654	654	7 directly by the public entity to pay such the project costs or
655	655	8 used by a third party recipient of such the funds to pay such
656	656	9 the project costs if within a Major 21st Century Manufacturing
657	657	10 Zone;.
658	658	11 "(4) Payment out of the proceeds of the sale of tax
659	659	12 increment obligations issued by the public entity creating a
660	660	13 tax increment district under this section chapter, such the
661	661	14 payments being used either directly by the public entity to
662	662	15 pay such the project costs or used by a third party recipient
663	663	16 of such funds to pay such the project costs if within a Major
664	664	17 21st Century Manufacturing Zone; and.
665	665	18 "(5) Payment as otherwise provided by law.
666	666	19 "(b) For the purposes of paying project costs or of
667	667	20 refunding obligations issued as otherwise provided by law or
668	668	21 under this sectionpursuant to the authority of this chapter or
669	669	22 other applicable law , the local governing body may issue tax
670	670	23 increment obligations payable out of positive tax increments.
671	671	24 Such The tax increment obligations shall not be included in
672	672	25 the computation of the constitutional debt limitation of the
673	673	26 public entity unless they are also secured by a pledge of the
674	674	27 full faith and credit of the public entity.
675	675	Page 25 1 "(c) Tax increment obligations may be authorized by
676	676	2 resolution of the local governing body without the necessity
677	677	3 of a referendum or any approval by the electorate. The
678	678	4 resolution shall state the name of the tax increment district,
679	679	5 the amount of obligations authorized, and the interest rate or
680	680	6 rates to be borne thereby or the method of computing the same.
681	681	7 The resolution may prescribe the terms, form, and content of
682	682	8 the obligations and such other matters as the local governing
683	683	9 body deems useful.
684	684	10 "(d) Tax increment obligations may not be issued in
685	685	11 an amount exceeding the aggregate project costs of a project
686	686	12 or projects specified in a project plan, as such plan may be
687	687	13 amended. The tax increment obligations shall mature not more
688	688	14 than 30 years from the date thereof. The tax increment
689	689	15 obligations may: (i) contain Contain provisions authorizing
690	690	16 the redemption thereof, in whole or in part, at stipulated
691	691	17 prices, at the option of the public entity creating the
692	692	18 district, on any dates named therein and provide the method of
693	693	19 selecting the obligations to be redeemed, (ii) be payable at
694	694	20 any time or times and at any place, (iii) be payable to bearer
695	695	21 or registered as to principal or principal and interest, (iv)
696	696	22 be in any denominations, and (v) be sold at public or private
697	697	23 sale.
698	698	24 "(e) Tax increment obligations shall be payable only
699	699	25 out of a stipulated tax increment fund created pursuant to
700	700	26 Section 11-99-6 hereof, except as provided in paragraph
701	701	27 subsection (f) of this section. The local governing body
702	702	Page 26 1 public entity creating the district shall irrevocably pledge
703	703	2 all or a part of such the tax increment fund to the payment of
704	704	3 the tax increment obligations. The amounts in the tax
705	705	4 increment fund may thereafter be used only for the payment of
706	706	5 the principal of and interest on the tax increment obligations
707	707	6 payable therefrom until they the principal and interest have
708	708	7 been fully paid; provided, the amounts, if any, in the tax
709	709	8 increment fund in excess of the amount required to pay the
710	710	9 principal of and interest on the tax increment obligations
711	711	10 becoming due and payable in any fiscal year of the local
712	712	11 governing body may be used for the payment of project costs.
713	713	12 "(f) To increase the security and marketability of
714	714	13 tax increment obligations, the public entity may do any of the
715	715	14 following:
716	716	15 "(1) Create To the extent permitted by the
717	717	16 Constitution of Alabama of 1901, as amended, create a
718	718	17 non-forclosable lien for the benefit of the security holders
719	719	18 upon any public improvements or public works financed thereby
720	720	19 or the revenues therefrom;.
721	721	20 "(2) Pledge the full faith and credit of the public
722	722	21 entity to the payment thereof; and.
723	723	22 "(3) Make covenants and do any and all acts as may
724	724	23 be necessary or convenient or desirable in the judgment of the
725	725	24 local governing body in order additionally to secure such the
726	726	25 obligations or make the obligations more marketable.
727	727	26 "(g) For the purpose of paying project costs, the
728	728	27 local governing body public entity creating the tax increment
729	729	Page 27 1 district may also allow payments to be made in full at the
730	730	2 time such the project costs accrue, thus allowing a project to
731	731	3 be all or partially funded on a pay-as-you-go basis.
732	732	4 "§11-99-10.
733	733	5 "(a) With respect to any taxing authority other than
734	734	6 the public entity which created the tax increment district,
735	735	7 the calculation of the equalized valuation of taxable property
736	736	8 in a tax increment district may not exceed the tax increment
737	737	9 base of the district until the district is terminated, unless
738	738	10 agreement has been made for other arrangements under
739	739	11 subsection (b) of this section.
740	740	12 "(b) (a) In such cases where If it can be shown that
741	741	13 losing tax increments would be harmful to any given taxing
742	742	14 authority or cause such a taxing authority not to honor a
743	743	15 prior binding commitment, by contract executed with the public
744	744	16 entity creating a tax increment district prior to the
745	745	17 designation of the tax increment district, and if an agreement
746	746	18 has been made for such allowances through a process of
747	747	19 negotiation at the time of the creation of the tax increment
748	748	20 district, a taxing authority may make payments into the tax
749	749	21 increment fund, less the sum of:
750	750	22 "(1) Any property taxes produced from the tax
751	751	23 increments which are required to be paid by the taxing
752	752	24 authority to another political subdivision; and
753	753	25 "(2) A portion, not to exceed 20 percent or a
754	754	26 one-time payment mutually agreed upon at the time of the
755	755	27 creation of the tax increment district, of the tax increment
756	756	Page 28 1 produced in the district by the taxes levied on behalf of that
757	757	2 taxing authority.
758	758	3 "(c) (b) All tax increments which that have accrued
759	759	4 with respect to school districts under this chapter shall be
760	760	5 determined and the amounts shall be paid on February 1 of each
761	761	6 year out of the taxes of all school districts which that have
762	762	7 territory in a tax increment district.
763	763	8 "(d) (c) The use of the increased valuations in the
764	764	9 tax increment district before the completion of the project in
765	765	10 calculating any general state school aid formula is
766	766	11 prohibited.
767	767	12 "(e) (d) A taxing authority is not may, but shall
768	768	13 not be required to, pay a tax increment into the tax increment
769	769	14 fund for a district beyond three five years from the date the
770	770	15 district was created unless one or more of the following
771	771	16 conditions exist or have been met:
772	772	17 "(1) Tax increment obligations have been issued for
773	773	18 the district;.
774	774	19 "(2) The public entity that created the tax
775	775	20 increment district has acquired an interest in any property
776	776	21 within the district pursuant to the project plan; or.
777	777	22 "(3) Construction of improvements pursuant to the
778	778	23 project plan has commenced in the district."
779	779	24 Section 2. The provisions of this act are severable.
780	780	25 If any part of this act is declared invalid or
781	781	26 unconstitutional, that declaration shall not affect the part
782	782	27 which remains.
783	783	Page 29 1 Section 3. This act shall become effective
784	784	2 immediately following its passage and approval by the
785	785	3 Governor, or its otherwise becoming law.
786	786	Page 30