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HB142 ENROLLED
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HB142
CXLMPWW-2
By Representative Wilcox (N & P)
RFD: County and Municipal Government
First Read: 13-Jan-26
PFD: 09-Jan-26
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PFD: 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
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(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
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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
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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
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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:
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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
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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.
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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
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