The bill amends Section 11-99-4 of the Code of Alabama 1975, focusing on Class 2 municipalities and enhancing the framework for tax increment districts. It increases the allowable percentage of total value of equalized taxable property that can be included in these districts and introduces new procedural requirements for local governing bodies. These requirements include holding public hearings, providing detailed project plans, and ensuring public engagement and transparency throughout the process. The amendments clarify the duration of tax increment districts, allowing a maximum of 30 years for blighted areas and 35 years for enhanced use lease areas or Major 21st Century Manufacturing Zones.

Key insertions in the bill mandate local governing bodies to provide comprehensive descriptions of proposed district boundaries, development plans, and the estimated impact on property values and tax revenues. The bill also stipulates that the aggregate value of equalized taxable property in the tax increment district, along with existing districts, must not exceed 10 percent of the total value for public entities, or 50 percent for Class 2 or Class 3 municipalities. Additional amendments include requirements for maps of existing property conditions, plans for relocating displaced families and businesses, and a list of estimated nonproject costs. The bill emphasizes the need for compliance with local master plans and allows for the establishment of an advisory board for tax increment districts, with the act set to take effect on October 1, 2026.

Statutes affected:
Introduced: 11-99-4
Enrolled: 11-99-4