SB112 Summary

• Amends Alabama law to authorize Class 2 municipalities to create self-help business improvement districts funded by special assessments on designated classes of businesses for tourism promotion purposes.

• Allows districts to levy assessments based on business activity, including percentage of gross revenue or fixed rates per occupied room per night, in addition to traditional property-based assessments.

• Establishes procedures for district creation, management by nonprofit corporations, amendment, expansion, and reduction with property or business owner approval thresholds (60% of assessment value and 50% of parcels/businesses).

• Requires annual reporting and audits by certified public accountants, with sunset review after five years allowing districts to be continued, modified, or terminated based on owner petitions.

• Exempts district management corporations from state and local corporate income, franchise, sales, use, and ad valorem taxes, and exempts single-family owner-occupied residential properties from special assessments.