Montgomery County approves 10-year tax abatement for SoGo Properties tied to $6.17M investment

The Montgomery County Commission on Aug. 5 adopted a resolution approving a Tax Abatement Agreement with SoGo Properties, LLC under the Brownfield Development Tax Abatement Act (Ala. Code § 40-9C-1 et seq.). The agreement grants abatements for noneducational ad valorem taxes, county construction-related noneducational sales and use taxes, and mortgage and recording taxes for up to 10 years.

Commissioner Castanza moved to adopt the resolution and Commissioner Sankey seconded; the motion carried unanimously. Chairman Doug Singleton presided over the formal meeting. The agreement as presented in the meeting packet lists the project's capital investment at $6,172,937.50 and calls for administration of abatements consistent with the statute.

The abatement language in the draft agreement specifies that the ten-year ad valorem exemption will begin on the first Oct. 1 lien date after the project is placed in service; items of personal property will each receive a separate ten-year abatement beginning on the first Oct. 1 lien date that property becomes subject to Alabama ad valorem taxes. The agreement also states that educational ad valorem taxes remain the company's responsibility.

County documents attached to the packet indicate the abatement applies only to noneducational taxes and that the company remains liable for any local taxes levied for educational or capital-improvement purposes. The resolution authorizes the county chairman to execute the agreement and related documents and directs staff to forward the certified resolution and agreement to appropriate taxing authorities and the Alabama Department of Revenue as required under the Act.

The motion was recorded as carried unanimously by the commissioners present. Commissioner Harris was absent from the meeting.