HB318 Summary

• Authorizes Class 3 municipalities in Alabama to establish self-help business improvement districts to promote either economic development or increase tourism, expanding upon existing authority currently limited to Class 1 and Class 2 municipalities.

• Requires district creation through ordinance by municipalities that obtain signatures of property owners representing at least 50 percent of real property value (for economic development districts) or business owners representing 50 percent of special assessment amounts (for tourism districts).

• Establishes district management corporations as nonprofit entities incorporated under Alabama law to administer supplemental services funded by special assessments on district property owners or businesses, with boards of 3-13 directors and majority district member composition.

• Permits districts to exist for initial five-year terms with renewal options and allows modifications or termination through board resolutions and public hearings requiring majority district member approval.

• Designates district management corporations as exempt from state and local corporate income taxes, franchise taxes, sales taxes, and other fees, while maintaining municipal police powers and public service levels within district boundaries.