HB567INTRODUCED
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HB567
2JWNXII-1
By Representative Wilcox (N & P)
RFD: Mobile County Legislation
First Read: 15-Apr-25
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5 2JWNXII-1 04/02/2025 THR (L)THR 2025-1439
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First Read: 15-Apr-25
SYNOPSIS:
Under existing law, counties and municipalities
may create tax increment districts in areas that are
blighted or otherwise meet criteria for economic
development opportunities. The law provides a mechanism
for funding economic development projects within tax
increment districts using the increased value in
taxable property of the projects.
Generally, a county or municipality may only
create a tax increment district if at least 50 percent
of the area within a tax increment district is in need
of rehabilitation or meets other economic development
criteria, and the equalized taxable property in all tax
increment districts within the county or municipality
does not exceed 10 percent of the total value of
equalized taxable property throughout the county or
municipality. An exception exists for Class 3
municipalities, which may include up to 50 percent of
the total value of equalized taxable property in tax
increment districts.
This bill would allow Class 2 municipalities to
include up to 50 percent of the total value of
equalized taxable property to be included in tax
increment districts within the municipality, similar to
Class 3 municipalities.
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Class 3 municipalities.
A BILL
TO BE ENTITLED
AN ACT
Relating to Class 2 municipalities; to amend Section
11-99-4, Code of Alabama 1975, to increase the percent of
total value of equalized taxable property, within a Class 2
municipality, that may be included in tax increment districts
created by the municipality.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-99-4, Code of Alabama 1975, is
amended to read as follows:
"ยง11-99-4
(a) In order to exercise its powers under this chapter,
a public entity shall take the following steps:
(1) The local governing body shall hold a public
hearing at which all interested parties are afforded a
reasonable opportunity to express their views on the concept
of tax increment financing, on the proposed creation of a tax
increment district and its proposed boundaries, and its
benefits to the public entity. Notice of the hearing shall be
published in a newspaper of general circulation in either the
county or in the city, as the case may be, in which the
proposed tax increment district is to be located with notice
to be published at least twice in the 15-day period
immediately preceding the date of the hearing. Prior to
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immediately preceding the date of the hearing. Prior to
publication, a copy of the notice shall be sent by first class
mail to the chief executive officer of each deferred tax
recipient.
(2) In addition to the notice required by subdivision
(1), and either before or after the public hearing, the local
governing body shall make a written submission to the
governing body of each deferred tax recipient. The submission
shall include a description of the proposed boundaries of the
tax increment district, the tentative plans for the
development, redevelopment, or revitalization of the tax
increment district, and an estimate of the general impact of
the proposed project plan on property values and tax revenues.
Not later than the 15th day after the date on which the notice
required by subdivision (1) is mailed, each deferred tax
recipient shall designate a representative empowered to meet
with the local governing body to discuss the project plan and
the tax increment financing and shall notify the local
governing body of its designation. Failure of any deferred tax
recipient to designate a representative within the 15-day
period, or to notify the local governing body of its
designation, shall not prevent the local governing body from
proceeding hereunder. If a deferred tax recipient who has
failed to so designate a representative thereafter designates
a representative and notifies the local governing body of the
designation, the representative shall be entitled to notice of
any meetings held thereafter pursuant to this section, and
shall be entitled to attend the meetings, but shall have no
right to have matters discussed again which have already been
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right to have matters discussed again which have already been
discussed. The local governing body shall call a meeting, or
meetings, of the representatives of the deferred tax
recipients to be held at any time after 20 days from the
mailing notice referred to in subdivision (1). Each
representative shall be notified of each meeting at least
three days before the meeting is to be held, but notice may be
waived. At the meetings, the local governing body and the
representatives of the deferred tax recipients may discuss the
boundaries of the tax increment district, development within
the tax increment district, the exclusion of particular
parcels of property from the district, and tax collection for
the district. On the motion of the local governing body any
other matter relevant to the proposed tax increment district
may be discussed.
(3) The local governing body shall adopt a resolution,
which need not be published, which does all of the following:
a. Describes the boundaries of the tax increment
district with sufficient definiteness to identify with
ordinary and reasonable certainty the territory included,
which shall include only those whole units of property, other
than publicly owned property such as streets, easements, and
rights-of-way, assessed for general property tax purposes and,
if the public entity is a county, which shall include only
those areas that lie outside the corporate limits of any
municipality, unless the governing body of a municipality has
consented to the inclusion of land within its corporate limits
within a tax increment district formed by a county.
b. Creates the tax increment district as of a given
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b. Creates the tax increment district as of a given
date after the date of adoption of the resolution, which date
of creation of the tax increment district may be a date
subsequent to the date of expiration of the period of duration
of an existing tax increment district of the public entity,
and fixes the period for its duration, which may be for a
period not to exceed 30 years from the date of creation of the
tax increment district in the case of a tax increment district
in which not less than 50 percent, by area, of the real
property within the tax increment district is a blighted or
economically distressed area, and which may be for a period
not to exceed 35 years from the date of creation of the tax
increment district in the case of a district in which not less
than 50 percent, by area, of the real property within the tax
increment district is an enhanced use lease area or a Major
21st Century Manufacturing Zone, unless an amendment is made
to the project plan under subdivision (7) .
c. Assigns a name to the tax increment district for
identification purposes, such as "tax increment district
number one.".
d. Contains findings, which shall not be subject to
judicial review except after a showing of fraud, corruption,
or undue influence, that:
1. Not less than 50 percent, by area, of the real
property within the tax increment district is: (i) In need of
rehabilitation, redevelopment, revitalization, or conservation
work, or; (ii) an enhanced use lease area ,; or (iii) a Major
21st Century Manufacturing Zone; and
2. The aggregate value of equalized taxable property in
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2. The aggregate value of equalized taxable property in
the tax increment district plus all existing tax increment
districts created by the public entity does not exceed 10
percent of the total value of equalized taxable property
within the public entity or 50 percent if the public entity is
a Class 2 or Class 3 municipality. Provided, however, that
equalized taxable property located within the boundaries of a
military reservation, jurisdiction over which has been ceded
to the United States pursuant to Section 42-3-1, shall be
excluded from aggregated value.
(4) The local governmental body shall prepare and adopt
a project plan for each tax increment district. The plan shall
include a statement listing the proposed projects, including,
without limitation and if applicable, the kind, number, and
location of all proposed public works or improvements or, in
the case of a Major 21st Century Manufacturing Zone, public
works or improvements or private improvements, within the
district; a detailed list of estimated project costs; and a
description of the methods of financing all estimated project
costs and the time when related costs or monetary obligations
are to be incurred. For purposes of this chapter, any work or
improvement for a military installation and located within an
enhanced use lease area shall be deemed to be for public uses
and purposes. The project plan shall also include: A map
showing existing uses and condition of real property in the
district; a map or description showing proposed improvements
and uses therein; proposed changes of zoning, master map plan,
building code, and other ordinances or resolutions affecting
the district; a list of estimated nonproject costs; and a
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the district; a list of estimated nonproject costs; and a
proposed plan for the relocation of any families, individuals,
and businesses to be temporarily or permanently displaced from
housing or commercial facilities in the district by
implementation of the plan.
(5) The local governing body shall certify all of the
following before approving the project plant:
a. That a feasible method exists for the relocation and
compensation of any individuals, families, and businesses that
will be displaced by the project in decent, safe, and sanitary
accommodations within their means and without undue hardship
to such individuals, families, and businesses ;.
b. That the project plan conforms to the applicable
master plan of the local entity, if there is one ; and.
c. That the project plan will afford maximum
opportunity, consistent with the sound needs of the public
entity as a whole, for the rehabilitation, redevelopment, or
revitalization of the tax increment district by private
enterprise.
(6) A copy of the project plan shall be mailed to the
governing body of each deferred tax recipient, before approval
of the project plan.
(7) The local governing body may at any time adopt an
amendment to a project plan by complying with the procedures
for the original adoption of a project plan.
(8) The public entity that created the tax increment
district, and each deferred tax recipient with respect to the
tax increment district, notwithstanding any provision in this
chapter to the contrary, by written mutual agreement duly
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chapter to the contrary, by written mutual agreement duly
authorized, executed, and delivered thereby, may establish an
advisory board for the tax increment district composed of the
mayor or the chair of the county commission of the public
entity, as appropriate, a member of the governing body of the
public entity that represents the largest area in the tax
increment district, and other members as the respective
governing body, or its designee, of each deferred tax
recipient may appoint; provided a majority of the members of
an advisory board must be members of the governing body of the
public entity.
(b) Judicial review of a decision of a public entity
related to a tax increment district shall be as provided by
law."
Section 2. This act shall become effective on October
1, 2025.
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