Help us improve in just 2 minutes—share your thoughts in our reader survey.
Alabama Use of City Manufacturing Zone Tax Revenue to Incentivize Manufacturing, Amendment 11 (2016)
| Alabama Amendment 11 | |
|---|---|
 | |
| Election date November 8, 2016 | |
| Topic County and municipal governance | |
Status Approved | |
| Type Constitutional amendment | Origin State legislature |
The Alabama Use of City Manufacturing Zone Tax Revenue to Incentivize Manufacturing Amendment, also known as Amendment 11, was on the November 8, 2016, ballot in Alabama as a legislatively referred constitutional amendment. It was approved.
| A "yes" vote supported this proposal to confirm the Major 21st Century Manufacturing Zone Act, which allowed Alabama cities to create specific zones to attract industry to Alabama. |
| A "no" vote opposed this proposal, leaving the stipulations of the Act out of the Alabama Constitution. |
Election results
| Amendment 11 | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 866,515 | 59.27% | ||
| No | 595,392 | 40.73% | ||
- Election results from Alabama Secretary of State
Overview
- See also: TIF districts
Major 21st Century Manufacturing Zones
The Major 21st Century Manufacturing Zone Act allowed Alabama cities to create "Major 21st Century Manufacturing Zones" to incentivize industrial development to Alabama. Cities must invest at least $100 million on at least 250 contiguous acres to be able to borrow money for land, road construction, infrastructure development, and facility construction.[1]
These zones are TIF districts. A TIF is a tool to use future gains in taxes to finance the current improvements that will create those gains. When a public project such as a road, school, or hazardous waste cleanup is carried out, there is an increase in the value of surrounding real estate, and often new investment (new or rehabilitated buildings, for example). This increased site value and investment creates more taxable property, which increases tax revenues. The increased tax revenues are the "tax increment." Tax Increment Financing dedicates that increased revenue to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur. TIF creates funding for public projects that may otherwise be unaffordable to localities.
Text of measure
Ballot title
The following language appeared on the ballot:[2]
| “ |
Proposing an amendment to the Constitution of Alabama of 1901, as amended, to permit cities and counties, notwithstanding any existing constitutional restrictions, to utilize tax increment district revenues collected within a Major 21st Century Manufacturing Zone and other moneys to incentivize the establishment and improve various types of manufacturing facilities located or to be located in such Zone, and to validate and confirm the Major 21st Century Manufacturing Zone Act, Act No. 2013-51.[3] |
” |
Constitutional changes
- See also: Alabama Constitution
Amendment 11 was designed to add the following language to the Alabama Constitution:
Notwithstanding any other provision of the Constitution, public moneys, including ad valorem tax revenues, collected within a tax increment district located within a Major 21st Century Manufacturing Zone as defined by law, and proceeds of obligations issued by the municipality or county establishing the district for the purposes of redevelopment or revitalization of property located therein, may be expended for the acquisition of the property and the redevelopment, rehabilitation, or conservation thereof, and the moneys, property, and proceeds may be disposed of, whether to or for the benefit of private interests or otherwise, for such consideration as shall be determined in the discretion of the governing body of the county or municipality, as the case may be, that established the district and without regard to Sections 93 and 94 of this Constitution. Any obligations of a municipality or county issued for the purposes set forth above shall not be chargeable against the constitutional debt limit of the municipality or county. The exercise of any powers granted in the Major 21st Century Manufacturing Zone Act, Act 2013—51, by any municipality or county, or the governing body thereof, shall not be subject to those limitations or restrictions that would otherwise have been applicable under Section 93 or Section 94 of this Constitution. The Major 21st Century Manufacturing Zone Act, Act 2013-51, is hereby validated and confirmed.[3]
Full text
The full text of Amendment 11 can be found here.
Support
21st Century Alabama and the Moving Alabama Forward PAC led the support campaign for Amendment 11.[4]
Supporters
Arguments in favor
Jeremy Arthur, president and CEO of the Alabama Chamber of Commerce Association of Alabama, said the following:[7]
| “ |
It would keep us competitive for regional projects, and you can imagine how important those are," he said. "If you're dealing with a 250-acre site and a $100 million investment, that's hundreds of jobs involved in something that size, and what that means for a community.[3] |
” |
Opposition
Arguments against
Politics Alabama wrote the following about Amendment 11:[8]
| “ |
Okay, this is an issue on which I’ve commented before, using taxpayer dollars to “incentivize” investment and development in certain areas. This amendment would expand the ability of counties and cities to funnel taxpayer dollars to favored businesses in order to “lure” them into the area. My problem with this is that this amounts to government subsidization of some businesses over others. In short, the cities and counties would be able to help some businesses succeed using taxpayer dollars, while other businesses would flounder against these government-backed enterprises. Private businesses should not have to compete against other businesses that receive benefits from the government; leave competition in the private sector alone. Because of that, I will be voting NO on Amendment #11.[3] |
” |
Media editorials
Support
- The Times Daily recommended a "yes" vote for Amendment 11, and wrote the following:[9]
| “ |
While incentives are distasteful, the industries they attract can transform local economies. Amendment 11 would make it even harder for local governments to receive direct tax benefits from a recruited industry, but it does nothing to restrict the more significant indirect benefits that come from a large employer. Large manufacturers provide good jobs, and people who work at those jobs pay taxes. We recommend a “yes” vote on Amendment 11.[3] |
” |
Campaign finance
| Total campaign contributions: | |
| Support: | $0.00 |
| Opposition: | $0.00 |
As of February 1, 2017, no ballot question committees were registered to support or oppose Amendment 11.[10]
Path to the ballot
- See also: Amending the Alabama Constitution
To put a proposed constitutional amendment on the ballot in Alabama, both houses of the state legislature must approve the proposed amendment by a 60 percent supermajority. Amendment 11 was approved in the legislature as House Bill 311. HB 311 was introduced by Rep. Anthony Daniels (D-53), and it was approved unanimously in both the House and the Senate.[11]
House vote
April 12, 2016
| HB 311, House vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 98 | 100% | ||
| No | 0 | 0% | ||
Senate vote
May 3, 2016
| HB 311, Senate vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 28 | 100% | ||
| No | 0 | 0% | ||
State profile
| Demographic data for Alabama | ||
|---|---|---|
| Alabama | U.S. | |
| Total population: | 4,853,875 | 316,515,021 |
| Land area (sq mi): | 50,645 | 3,531,905 |
| Race and ethnicity** | ||
| White: | 68.8% | 73.6% |
| Black/African American: | 26.4% | 12.6% |
| Asian: | 1.2% | 5.1% |
| Native American: | 0.5% | 0.8% |
| Pacific Islander: | 0.1% | 0.2% |
| Two or more: | 1.7% | 3% |
| Hispanic/Latino: | 4% | 17.1% |
| Education | ||
| High school graduation rate: | 84.3% | 86.7% |
| College graduation rate: | 23.5% | 29.8% |
| Income | ||
| Median household income: | $43,623 | $53,889 |
| Persons below poverty level: | 23.3% | 11.3% |
| Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Alabama. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here. | ||
Presidential voting pattern
- See also: Presidential voting trends in Alabama
Alabama voted Republican in all seven presidential elections between 2000 and 2024.
More Alabama coverage on Ballotpedia
- Elections in Alabama
- United States congressional delegations from Alabama
- Public policy in Alabama
- Endorsers in Alabama
- Alabama fact checks
- More...
Related measures
| County and municipal governance measures on the ballot in 2016 | |
|---|---|
| State | Measures |
| Alabama | Alabama Restriction of Police and Planning Jurisdiction in Calhoun County, Amendment 10 |
Recent news
The link below is to the most recent stories in a Google news search for the terms Alabama City Manufacturing Zone Tax Revenue Amendment 11. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
- Alabama 2016 ballot measures
- 2016 ballot measures
- Alabama Legislature
- List of Alabama ballot measures
External links
Footnotes
- ↑ AL.com, "New tax increment finance law aims to lure manufacturers," March 15, 2013
- ↑ Alabama Secretary of State, "Summary Information for Proposed Constitutional Amendments to appear on the 2016 General Election Ballot," accessed July 27, 2016
- ↑ 3.0 3.1 3.2 3.3 3.4 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ 21st Century Alabama, "Home," accessed October 28, 2016
- ↑ WBRC, "Huntsville Mayor gets support for Amendment 11 in Tuscaloosa," October 18, 2016
- ↑ Tuscaloosa News, "In Tuscaloosa, the mayor of Huntsville touts Amendment 11," October 18, 2016
- ↑ AL.com, "Amendment 11 'another tool' for economic development, supporters say," November 7, 2016
- ↑ Politics Alabama, "Election 2016: Statewide Amendments," November 1, 2016
- ↑ Times Daily, "Vote ‘no’ on Amendment 8, ‘yes’ on 11," November 3, 2016
- ↑ Alabama Electronic Fair Campaign Practices Act (FCPA) Reporting System, "Political Action Committee Search," accessed November 14, 2016
- ↑ OpenStates, "Alabama House Bill 311 (2016)," accessed July 29, 2016
 |
State of Alabama Montgomery (capital) |
|---|---|
| Elections |
What's on my ballot? | Elections in 2025 | How to vote | How to run for office | Ballot measures |
| Government |
Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy |
