HB253 By Representative Ball RFD County and Municipal Government Rd 1 18-FEB-20

SYNOPSIS: Under Amendment No. 8 of the Constitution of Alabama of 1901, as amended, now appearing as Section 216.01 of the Recompiled Constitution of Alabama of 1901, certain designated municipalities in the state may levy and collect an ad valorem tax for the purpose of paying debt service on bonds to finance capital improvements.

This bill proposes an amendment to authorize the levy and collection of the ad valorem tax authorized by Amendment No. 8 and to authorize as an alternative the use of the proceeds to directly pay the costs of public capital improvements on a pay-as-you-go basis, as well as to use the proceeds to pay debt service on bonds, warrants, and other securities issued to finance the costs of the improvements, and would validate any prior levy and use of the tax for these purposes.

A BILL TO BE ENTITLED AN ACT

Proposing an amendment to the Constitution of Alabama of 1901, as amended, to authorize each municipality authorized under Amendment No. 8 to the Constitution of Alabama of 1901, now appearing Section 216.01 of the Recompiled Constitution of Alabama of 1901, as amended, to levy and collect the ad valorem tax under Amendment No. 8 for the purpose of paying debt service on bonds, to levy and collect the ad valorem tax at the rate lawfully permitted for such municipality to directly pay the costs of public capital improvements, as well as to pay the principal of and interest on bonds, warrants, or other securities issued to finance or refinance the costs of improvements; and to ratify, validate, and confirm any prior levy and collection of the ad valorem tax for these purposes.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. The following amendment to the Constitution of Alabama of 1901, as amended, is proposed and shall become valid as a part thereof when approved by a majority of the qualified electors voting thereon and in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, as amended:

PROPOSED AMENDMENT

Each municipality authorized to levy and collect the special ad valorem tax authorized in Amendment No. 8 to the Constitution of Alabama 1901, now appearing as Section 216.01 of the Recompiled Constitution of Alabama of 1901, as amended, for the payment of bonds and the interest thereon, may levy and collect such ad valorem tax at a rate not exceeding the millage rate then lawfully permitted to be levied and collected by the municipality to directly pay the costs of public capital improvements, as well as to pay the principal of and interest on bonds, warrants, or other securities issued to finance or refinance the costs of the improvements; and any levy and collection of such ad valorem tax for these purposes by the municipality prior to the ratification of this amendment is hereby ratified, validated, and confirmed.

Section 2. An election upon the proposed amendment shall be held in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state.

Section 3. The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment:

"Proposing an amendment to the Constitution of Alabama of 1901, as amended, each municipality authorized under Amendment No. 8 to the Constitution of Alabama of 1901, now appearing Section 216.01 of the Recompiled Constitution of Alabama of 1901, as amended, to levy and collect the ad valorem tax pursuant to Amendment No. 8 for the purpose of paying bonds and the interest thereon, and may also levy and collect such ad valorem tax and utilize such funds for capital improvements on a pay-as-you-go basis at a rate not exceeding the rate then lawfully permitted for the municipality to directly pay the costs of public capital improvements, as well as to pay the principal and interest on bonds, warrants, or other securities issued to finance or refinance the costs of the improvements; and to ratify, validate, and confirm the levy and collection of such tax levied and collected for any of these purposes prior to the ratification of this amendment."

"Proposed by Act ________."

This description shall be followed by the following language:

"Yes ( ) No ( )."

Municipalities

Constitutional Amendments

Bonds

Ad Valorem Tax

Taxation

Elections