Alabama Tax Exemption for Community College Foundations
- Sales Tax News
- May 2, 2013 | Gail Cole
If Alabama Governor Robert Bentley (R) picks up a pen and signs HB 4 into law, "all property owned and used by the Lurleen B. Wallace Community College Foundation in furtherance of its charitable purpose" will be exempt from any state, county, and local ad valorem taxes. The governor is expected to do just that any day.
The Lurleen B. Wallace Community College is understandably thrilled by the prospect. A recent college news release proclaims that when the Alabama Legislature passed the bill, the foundation "took a giant step toward savings…"
The bill would allow the Foundation to "experience immediate savings in material costs during the construction phase and long-term savings in ad valorem taxes each year…." That will help defray the costs of building Saints Hall, a student residence currently under construction. It also means rents can remain low--welcome news to students. Kent Campbell, Saints Hall developer and manager, notes that "Property taxes alone would have pushed rents up by about $250 per student per year."
The Lurleen B. Wallace Community College will not be the only beneficiary of HB 4 if and when it becomes law. The bill includes an amendment to extend the exemption to the Calhoun Community College Foundation.
Get Free Tax Rate Tables