AL HB567

Amends Section 11-99-4 of the Code of Alabama 1975 to allow Class 2 municipalities to include up to 50 percent of total equalized taxable property in tax increment districts, matching the authority previously limited to Class 3 municipalities.

Under current law, counties and municipalities are generally limited to including only 10 percent of total equalized taxable property in tax increment districts, with Class 3 municipalities excepted to 50 percent.

Tax increment districts are created in blighted or economically distressed areas to fund economic development projects using increased property values within the district.

Effective date is October 1, 2025.