HB253 Summary

• Proposes a constitutional amendment to expand the use of ad valorem tax authorized under Amendment No. 8 of the Alabama Constitution for designated municipalities.

• Authorizes municipalities to use proceeds from the special ad valorem tax for direct payment of public capital improvement costs on a pay-as-you-go basis, in addition to the existing use for bond debt service.

• Permits municipalities to levy and collect the ad valorem tax at rates lawfully permitted to pay principal and interest on bonds, warrants, and other securities issued to finance or refinance capital improvements.

• Ratifies, validates, and confirms any prior levy and collection of the ad valorem tax for these purposes before the amendment's ratification.

• Requires a statewide election on the proposed amendment to be held in accordance with existing election procedures and state election laws.