# Ala. Code § 40-9B-7: Section 40-9B-7 Private Use Property; Taxation Thereof

> Alabama · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-7

## Section

- **Citation:** Ala. Code § 40-9B-7
- **Heading:** Section 40-9B-7 Private Use Property; Taxation Thereof
- **Jurisdiction:** Alabama
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Alabama Code / Title 40 / Chapter 9B / Section 40-9B-7

## Text

(a) Notwithstanding any other provision of law, if a public authority or county or municipal government has title to or a possessory right in private use property, then:

(1) The property shall be subject to ad valorem taxes as if the private user held title to the property.

(2) The private user of the property shall be liable for construction related transaction taxes as if the private user held title to such property.

(3) The private user of the property shall be subject to the recording taxes for mortgages, deeds, and documents relating to the issuance or securing of obligations and the conveyance of title to property into and out of a public authority.

(b) A private user of property described in subsection (a) may apply for, and if the property constitutes industrial development property, be granted abatements of ad valorem, construction related transaction taxes, and mortgage and recording taxes as described in Sections 40-9B-1 through 40-9B-6.

(c) The rule of subsection (a)(1) shall not apply to ad valorem taxes if a private user was entitled to use the property pursuant to a lease or other agreement entered into before May 21, 1992, or would be entitled to use the property at some future time pursuant to inducement entered into or adopted before May 21, 1992, provided, however, that this subdivision shall apply only to the property and the amount of capital expenditures set out in such inducement, subject to de minimis deviations.

(d) The rule of subsection (a)(2) shall not apply to construction related transaction taxes if a private user was entitled to use the property pursuant to a lease or other agreement entered into before May 21, 1992, or would be entitled to use the property at some future time pursuant to inducement entered into or adopted before May 21, 1992, provided, however, that this subdivision shall apply only to the property and the amount of capital expenditures set out in such agreement, subject to de minimis deviations.

(e) The rule of subsection (a)(3) shall not apply to mortgage and recording taxes with respect to property if a private user was entitled to use the property pursuant to a lease or other agreement entered into before May 21, 1992, or would be entitled to use the property at some future time pursuant to inducement entered into or adopted before May 21, 1992, provided, however, that this subdivision shall apply only to the property specified in such agreement, subject to de minimis deviations.

## Nearby sections

- [Ala. Code § 40-9B-1 Section 40-9B-1 Short Title](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-1.md)
- [Ala. Code § 40-9B-2 Section 40-9B-2 Legislative Findings](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-2.md)
- [Ala. Code § 40-9B-3 Section 40-9B-3 Definitions. (Amended by Acts 2026-550 and 2026-573)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-3.md)
- [Ala. Code § 40-9B-4 Section 40-9B-4 Authorization of Abatement. (Amended by Act 2026-573)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-4.md)
- [Ala. Code § 40-9B-4.1 Section 40-9B-4.1 Availability of Incentives. (Amended by Act 2026-573)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-4.1.md)
- [Ala. Code § 40-9B-5 Section 40-9B-5 Granting of Abatement](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-5.md)
- [Ala. Code § 40-9B-6 Section 40-9B-6 Procedure for Granting Abatement](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-6.md)
- [Ala. Code § 40-9B-7 Section 40-9B-7 Private Use Property; Taxation Thereof](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-7.md)
- [Ala. Code § 40-9B-8 Section 40-9B-8 Certain Purchases of Tangible Personal Property Used in Constructing Industrial Development Property Exempted](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-8.md)
- [Ala. Code § 40-9B-9 Section 40-9B-9 Approval Required for Certain Abatements](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-9.md)
- [Ala. Code § 40-9B-10 Section 40-9B-10 Applicability to Certain Trades or Businesses Engaged in Postharvest Processing of Peanuts](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-10.md)
- [Ala. Code § 40-9B-11 Section 40-9B-11 Exemption Period for Qualified Industrial or Research Enterprises](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-11.md)
- [Ala. Code § 40-9B-12 Section 40-9B-12 Availability of Abatements After December 31, 2018](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-12.md)
- [Ala. Code § 40-9B-13 Section 40-9B-13 Disaster Recovery Tax Incentive Protection](https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-13.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AL_T40_C9B_S40-9B-7. Check the current official text before relying on it. Not legal advice.