The bill HB626 amends several sections of the Code of Alabama 1975 to promote economic development through the establishment of Major 21st Century Manufacturing Zones. Key insertions include provisions that allow these zones to be located within tax increment districts without size restrictions and enable the use of ad valorem tax revenues to reimburse public entities for land acquisition costs incurred prior to the creation of the tax increment district. The bill also introduces the term "ship building-industry related" to the criteria for defining a Major 21st Century Manufacturing Zone, which must consist of at least 250 contiguous acres suitable for manufacturing facilities. Additionally, it clarifies definitions related to tax increment financing and outlines procedural steps for public entities to follow, emphasizing transparency and stakeholder engagement.

Moreover, the bill establishes a rebuttable presumption regarding property acquisitions by public entities within one year prior to the creation of a tax increment district, allowing for challenges if the acquisition was for a different purpose. It mandates local tax assessors to identify properties within these districts and requires the Department of Revenue to notify finance officers of assessed values. The allocation of positive tax increments to the public entity that created the district is also specified, with payments continuing until project completion or a maximum of thirty-five years. The bill aims to enhance the efficiency of tax increment financing for redevelopment projects while providing local governing bodies with the necessary tools to manage these districts effectively.

Statutes affected:
Introduced: 11-99-4, 11-99-5, 11-99-6, 11-99-2, 11-99-4, 11-99-5, 11-99-6
Engrossed: 11-99-4, 11-99-5, 11-99-6, 11-99-2, 11-99-4, 11-99-5, 11-99-6
Enrolled: 11-99-4, 11-99-5, 11-99-6, 11-99-2, 11-99-4, 11-99-5, 11-99-6