Section 40-18-473 - Tax rebates generally(a) A tax rebate from taxes generated within the tourism destination attraction by the certified tourism destination project over a 10-year period from the commencement of operation, which must occur after the effective date of the act adding this language, in the amount of up to five million dollars ($5,000,000) may be claimed. No approved company may receive more than one million dollars ($1,000,000) in tourism rebates in a calendar year. (b)(1) The tax rebates authorized by this article are limited to an aggregate amount for all certified tourism destination projects of ten million dollars ($10,000,000) annually with 10 percent set aside annually for certified tourism destination projects located in targeted or jumpstart counties.(2) An approved company with a certified tourism destination project may be granted a tax rebate on any combination of the state and local sales and use taxes, lodging taxes, or other transactional taxes generated by or arising within the tourism destination project after the effective date of the act adding this language.(3) An approved company shall have no obligation to refund or otherwise return any amount of taxes authorized for rebate to the persons from whom the taxes were collected.(4) Rebates authorized under this article shall be for up to 10 years, commencing on the date the tourism attraction opens for business, which must occur after the effective date of the act adding this language, and begins to collect taxes generated by, or arising within, the tourism destination project.(5) Tax rebates may be a combination of state and local retail sales tax, state and local lodging taxes, and any other taxes generated by, or arising within, the tourism destination project after the effective date of the act adding this language. The municipality or the taxing district where the tourism destination project will be located must support and approve the facility. The approval must be in the form of a resolution of the governing authority acknowledging support of the project and acknowledging that a portion no less than 20 percent of the tax rebates will be comprised of municipal taxes.(6) The Alabama Department of Revenue, in consultation with the Alabama Tourism Department, shall adopt rules and require the filing of a rebate form designed by the Department of Revenue to reflect the intent of this article. To begin the rebate process, once project phases open for business after the effective date of the act adding this language, the approved company must provide a listing of all sales tax accounts and account numbers related to the project. The Alabama Department of Revenue will provide these accounts and will begin making the required diversions into the Tourism Project Sales Tax Incentive Fund the month following notification. Rebate payments from the fund will be made each January and July to the approved company.(7) No tax rebate shall be granted to an approved company during a tax year that the approved company is simultaneously receiving any other state tax incentive associated with any individual tourism attraction project.(8) Any tax rebate shall be first applied to any outstanding tax obligation of the approved company that is due and payable to the state.(9) Rebates under this article shall be made without interest.(10) Tax rebates authorized under this article are transferrable to future owners of the qualifying tourism destination project.(11) The tax rebate allowed under this article shall be effective beginning August 1, 2023, for projects placed into service after the effective date of the act adding this language and shall continue through July 31, 2028, unless continued by an act of the Legislature.(12) Tax rebates for certified tourism destination projects are to be administered by the Alabama Department of Revenue.(c) Notwithstanding the ten million dollar ($10,000,000) annual cap on tax rebates allowed, the board may approve an annual onetime designation of an additional two million five hundred thousand dollars ($2,500,000) in tax rebates for one project per calendar year with a minimum capital investment amount of seventy-five million dollars ($75,000,000).Ala. Code § 40-18-473 (1975)
Amended by Act 2023-512,§ 2, eff. 6/14/2023.Added by Act 2023-34,§ 5, eff. 4/20/2023.