Alabama § 11-99-10 - Equalized Valuation for Apportionment of Property Taxes.

§ 11-99-10. Equalized Valuation for Apportionment of Property Taxes.

(a) If it can be shown that losing tax increments would be harmful to any given taxing authority or cause a taxing authority not to honor a prior binding commitment, by contract executed with the public entity creating a tax increment district prior to the designation of the tax increment district, and if an agreement has been made for such allowances through a process of negotiation at the time of the creation of the tax increment district, a taxing authority may make payments into the tax increment fund, less the sum of:

(1) Any property taxes produced from the tax increments which are required to be paid by the taxing authority to another political subdivision; and

(2) A portion, not to exceed 20 percent or a one-time payment mutually agreed upon at the time of the creation of the tax increment district, of the tax increment produced in the district by the taxes levied on behalf of that taxing authority.

(b) All tax increments that have accrued with respect to school districts under this chapter shall be determined and the amounts shall be paid on February 1 of each year out of the taxes of all school districts that have territory in a tax increment district.

(c) The use of the increased valuations in the tax increment district before the completion of the project in calculating any general state school aid formula is prohibited.

(d) A taxing authority may, but shall not be required to, pay a tax increment into the tax increment fund for a district beyond five years from the date the district was created unless one or more of the following conditions exist or have been met:

(1) Tax increment obligations have been issued for the district.

(2) The public entity that created the tax increment district has acquired an interest in any property within the district pursuant to the project plan.

(3) Construction of improvements pursuant to the project plan has commenced in the district.