Unabatement of Noneducational Ad Valorem Tax and State Construction Related Transaction Tax.

Ala. Code tit. 40, ch. 9I

in effect

Ala. Code § 40-9I-1 Portions of Noneducational Ad Valorem Tax and Construction Related Transaction Tax Unabated.

40-9I-1. Portions of Noneducational Ad Valorem Tax and Construction Related Transaction Tax Unabated. Upon the granting of an abatement pursuant to Section 40-9B-4 or 40-9G-2 during the applicable exemption period: (1) One mill of the state’s abated noneducational ad valorem taxes shall be unabated. The local tax collecting official shall collect 1.0 mill of the state noneducational ad valorem taxes that otherwise could have been abated and remit the amount collected to the State Comptroller for deposit into the Alabama Development Fund. (2) Three-quarters of one percent of the state construction related transaction taxes on private use industrial property shall be unabated. The Department of Revenue shall collect the unabated rate on sales of private use industrial property which was previously subject to abatement and shall deposit such funds directly to the Alabama Development Fund. EndFragment (Act 2025-84, §1.)

Ala. Code § 40-9I-2 Applicability of Chapter.

40-9I-2. Applicability of Chapter. Nothing in this chapter shall impair, restrict, or alter any abatement agreement granted prior to June 1, 2026. The provisions of this chapter shall apply prospectively to new abatements granted on or after June 1, 2026. EndFragment (Act 2025-84, §2.)

Ala. Code § 40-9I-3 Economic Development Planning and Program Evaluation; Confidentiality of Information; Rulemaking Authority.

40-9I-3. Economic Development Planning and Program Evaluation; Confidentiality of Information; Rulemaking Authority. (a) The Department of Revenue shall provide the Department of Commerce with a copy of each application, resolution, and abatement agreement, including any amendment, granted under Section 40-9B-4 or 40-9G-2. (b) The Department of Commerce shall use the information received under subsection (a) solely for the purposes of economic development planning and program evaluation. (c) To ensure taxpayer confidentiality, all information shared under this section shall remain subject to the confidentiality provisions of Section 40-2A-10. The Department of Commerce shall implement safeguards to ensure that taxpayer information is not disclosed to unauthorized persons or entities. (d) The Department of Commerce and the Department of Revenue may adopt rules for the administration of this chapter. EndFragment (Act 2025-84, §3.)

Ala. Code § 40-9I-4 Application and Implementation of Section 40-9I-2.

40-9I-4. Application and Implementation of Section 40-9I-2. Section 40-9I-2 shall apply uniformly to all eligible taxpayers and shall be implemented in a manner that complies with all applicable provisions of the Constitution of Alabama of 2022, as amended. EndFragment (Act 2025-84, §4.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026