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--- version:Enrolled+++ version:Introduced@@ -1,7 +1,7 @@-HB142 ENROLLED+HB142 INTRODUCEDPage 0HB142-CXLMPWW-2+CXLMPWW-1By Representative Wilcox (N & P)RFD: County and Municipal GovernmentFirst Read: 13-Jan-26@@ -12,36 +12,34 @@456-HB142 Enrolled+CXLMPWW-1 10/24/2025 THR (L)THR 2025-2662Page 1PFD: 09-Jan-26-Enrolled, 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 which 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:-"§11-99-4-(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 : (i) the-concept of tax increment financing , on ; (ii) the proposed-creation of a tax increment district and its proposed-boundaries ,; and (iii) 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 publication, a copy of the notice shall be-sent by first class mail to the chief executive officer of-each deferred tax recipient.-(2)a. In addition to the notice required by subdivision+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 in the municipality.+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.123@@ -70,37 +68,34 @@262728-HB142 Enrolled+HB142 INTRODUCEDPage 2-(2)a. 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.-b. 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-discussed.-c. 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+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 which 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:+"§11-99-4+(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 : (i) the+concept of tax increment financing , on ; (ii) the proposed+creation of a tax increment district and its proposed+boundaries ,; and (iii) 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 the293031@@ -129,37 +124,37 @@545556-HB142 Enrolled+HB142 INTRODUCEDPage 3-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 . The description 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 . If the public entity is a county, which-the description 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-date after the date of adoption of the resolution , which . The-date of creation of the tax increment district may be a date+the 15-day period 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)a. 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.+b. 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 been575859@@ -188,37 +183,37 @@828384-HB142 Enrolled+HB142 INTRODUCEDPage 4-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 .-c. Fixes the period for its the duration of the tax-increment district ,.-1. which The duration 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 .-2. The duration 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.d. Assigns a name to the tax increment district for-identification purposes, such as "tax increment district-number one .".-d.e. 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+right to have matters discussed again which have already been+discussed.+c. 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 . The description 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 . If the public entity is a county, which+the description 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 tax858687@@ -247,37 +242,37 @@110111112-HB142 Enrolled+HB142 INTRODUCEDPage 5-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-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)a. The local governmental body shall prepare and-adopt a project plan for each tax increment district. The plan-shall include all of the following:-1. a 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 .-2. A detailed list of estimated project costs ; and a .-3. 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:+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+date after the date of adoption of the resolution , which . The+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 .+c. Fixes the period for its the duration of the tax+increment district ,.+1. which The duration 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 .+2. The duration 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.d. Assigns a name to the tax increment district for+identification purposes, such as "tax increment district+number one .".+d.e. Contains findings, which shall not be subject to+judicial review except after a showing of fraud, corruption,+or undue influence, that:113114115@@ -306,37 +301,37 @@138139140-HB142 Enrolled+HB142 INTRODUCEDPage 6-also include:-4. A map showing existing uses and condition of real-property in the district ; a .-5. A map or description showing proposed improvements-and uses therein ;.-6. proposed Proposed changes of zoning, master map-plan, building code, and other ordinances or resolutions-affecting the district ; a .-7. A list of estimated nonproject costs ; and a .-8. 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.-b. 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.-(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+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+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)a. The local governmental body shall prepare and+adopt a project plan for each tax increment district. The plan+shall include all of the following:+1. a 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 .+2. A detailed list of estimated project costs ; and a .+3. 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 this141142143@@ -365,36 +360,37 @@166167168-HB142 Enrolled+HB142 INTRODUCEDPage 7-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-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, 2026.+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:+4. A map showing existing uses and condition of real+property in the district ; a .+5. A map or description showing proposed improvements+and uses therein ;.+6. proposed Proposed changes of zoning, master map+plan, building code, and other ordinances or resolutions+affecting the district ; a .+7. A list of estimated nonproject costs ; and a .+8. 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.+b. 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.+(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 applicable169170171@@ -422,20 +418,38 @@193194195-HB142 Enrolled+196+HB142 INTRODUCEDPage 8-1, 2026.-________________________________________________-Speaker of the House of Representatives-________________________________________________-President and Presiding Officer of the Senate-House of Representatives-I hereby certify that the within Act originated in and-was passed by the House 22-Jan-26.-John Treadwell-Clerk-Senate 10-Feb-26 Passed-196+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+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 by197198199@@ -464,9 +478,12 @@222223224+HB142 INTRODUCED+Page 9+related to a tax increment district shall be as provided by+law."+Section 2. This act shall become effective on October+1, 2026.225226227-228-229-230
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