HB 407 Alabama House · 2025 Regular Session

Local redevelopment authorities, transient occupancy taxes use as payment in lieu of tax authorized, reporting

House Bill 407 authorizes local redevelopment authorities to include transient occupancy taxes, such as hotel taxes, as a form of payment in lieu of tax (PILOT). Currently, these authorities can already require PILOTs based on other state taxes. The bill also mandates that these authorities report certain payments in lieu of tax to the Department of Revenue. This affects how local redevelopment authorities structure financial agreements and introduces a new reporting requirement for them.

Bill status signed all 5 stages cleared

Introduction

Mar 2025

Committee Review

Apr 2025

House Passage

Apr 2025

Senate Passage

May 2025

Signed into Law

May 2025

Introduced Mar 6, 2025 Signed May 14, 2025

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What changed between versions

Introduced → Enrolled · 5 edits · May 14, 2025

MODERATE

This bill was finalized and enrolled after introduction, with substantive changes expanding the powers of local redevelopment authorities. The enrolled version adds new powers for authorities to require transient occupancy tax payments and to enter into reciprocal agreements with state entities, while also adding a new requirement to report certain payments to the Department of Revenue.

Scope change

The bill's scope expanded from authorizing general payments in lieu of taxes to specifically including transient occupancy tax as a payable option, and added new authority to contract with state institutions and municipalities for mutual use of facilities and services.

REQUIREMENT

Added requirement for redevelopment authorities to report certain payments in lieu of taxes to the Department of Revenue.

SCOPE

Added authority for redevelopment authorities to require transient occupancy tax as a payment in lieu of tax.

Added new power to enter into agreements with state institutions and municipalities for mutual use of facilities and services.

Expanded project acquisition powers to include 'operate, or manage projects' and added ability to pay project costs from various funding sources including contributions from private entities.

TECHNICAL

Minor formatting changes including page numbering updates and document header changes from 'Introduced' to 'Enrolled' status.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 6, 2025

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 940

upper

Apr 15, 2025

Upper · Passed

Reported Out of Committee Second House

upper

Apr 9, 2025

Upper · Passed

Pending Committee Action in Second House (County and Municipal Government)

upper

Apr 8, 2025

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 674

lower

Mar 19, 2025

Lower · Passed

Reported Out of Committee House of Origin

lower

Mar 6, 2025

Lower · Passed

Pending Committee Action in House of Origin (County and Municipal Government)

lower

1 primary · 0 co-sponsors