§ 40-9B-5 — Granting of Abatement

Alabama § 40-9B-5

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 9B: Tax Incentive Reform Act of 1992

Text

(a) Subject to the geographical or jurisdictional or other limitations specified in subsections (b), (c), and (d), the governing body of a municipality, a county, or a public industrial authority may grant abatements of all of the taxes allowed to be abated under Section 40-9B-4 with respect to private use industrial property.
(b)(1) The abatements authorized to be granted pursuant to subsection (a) for construction related transaction taxes and for ad valorem taxes for a period not to exceed 10 years may be granted:
a. By the governing body of a municipality, except as otherwise provided herein, with respect to private use industrial property located within the limits of the municipality or within the police jurisdiction of the municipality; provided, however, if a municipality has a corresponding municipal tax, the municipal governing body may only grant an abatement of a county tax if the municipality has also abated the corresponding municipal tax, or, if the municipality does not have a corresponding municipal tax, the municipal governing body may abate a county tax only if the governing body of the county, by resolution adopted by a majority of its members, has authorized the municipality to abate the eligible county tax described in the resolution.
b. By the governing body of a county, with respect to private use industrial property located in the county and not within a municipality or the police jurisdiction of a municipality, unless consented to by resolution of the governing body of the municipality.
c. By the governing body of a public industrial authority, except as otherwise provided herein, with respect to private use industrial property located within the jurisdiction of the public industrial authority; provided, however, if the municipality has a corresponding municipal tax, a municipal public industrial authority may grant an abatement of a county tax only if the municipal authority has also abated the corresponding municipal tax or, if the municipality does not have a corresponding municipal tax, the municipal authority may abate a county tax only if the governing body of a county, by resolution adopted by a majority of its members, has authorized the public industrial authority of the municipality to abate any eligible county tax described in the resolution.
(2) The abatements authorized to be granted pursuant to subsection (a) for ad valorem taxes for a period longer than 10 years may be granted:
a. By the governing body of a municipality, with respect to private use industrial property located within the limits of the municipality or within the police jurisdiction of the municipality, but only as to municipal noneducational taxes.
b. By the governing body of a county, with respect to private use industrial property located in the county, but only as to county noneducational taxes.
c. By the Governor, with respect to private use industrial property located in the state, but only as to state taxes.
The governing body of a county and a municipality may separately authorize one or more public industrial authorities to provide by resolution for such consent on its behalf.
(3) Notwithstanding the provisions of this subsection, abatements authorized to be granted pursuant to subsection (a) for data processing centers may be granted in accordance with subdivision (1) without regard to the time limitation stated in subdivision (1).
(c) If a tax is abated pursuant to this chapter, any payment, contribution, or other financial or in-kind award received from a private user or related party shall be divided between the county and municipality whose taxes were abated based upon the tax proceeds which would have been paid if the taxes had not been abated, unless the party receiving such award can prove that the award was not related to the granting of any abatement. In addition, any county or municipality whose taxes are subject to abatement as provided in this chapter, by resolution adopted by affirmative vote of a majority of its members, may elect to waive the requirements of this subsection.
(d) Any abatement of county taxes granted by a municipality or municipal industrial authority shall not be valid until the expiration of (1) 10 days following the date of physical delivery to the county commission or (2) 13 days following the date of mailing by certified mail to the county commission of a copy of the resolution granting such abatement. Proof of delivery by affidavit of service, in the case of physical delivery, or by certified mail receipt, in the case of mailing by certified mail, shall be furnished to the Department of Revenue at the same time as the filing of the abatement agreement under Section 40-9B-6. If the procedures herein prescribed are followed, any such abatement shall be effective as of the date granted.

Legislative History

(Acts 1992, No. 92-599, p. 1239, §5; Act 2002-265, p. 548, §1; Act 2006-578, p. 1520, §1; Act 2015-24, §3; Act 2016-403, §1; Act 2016-405, §1.)