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Montgomery County approves tax abatement for SoGo Properties’ $6.17 million expansion
Summary
The Montgomery County Commission on Sept. 2 unanimously adopted a resolution approving a tax abatement agreement with SoGo Properties, LLC, for a projected $6,172,937.50 capital investment; the packet and agreement describe abatements of noneducational ad valorem taxes, construction-related sales/use taxes, and mortgage/recording taxes, and the record contains inconsistent language about whether the ad valorem abatement is 10 or 20 years.
The Montgomery County Commission voted unanimously on Sept. 2 to adopt a resolution approving a Tax Abatement Agreement with SoGo Properties, LLC, for what the company describes in the packet as a $6,172,937.50 capital investment in an expansion to its existing facility. Commissioner Castanza moved to adopt the resolution; Commissioner Sankey seconded the motion, which carried with Commissioners Doug Singleton, Sankey, Vice Chairman Moore‑Zeigler and Castanza voting yes and Commissioner Harris absent.
The resolution and the attached Abatement Agreement state that the company sought and the county granted abatements for all noneducational ad valorem property taxes, county construction‑related sales and use taxes (subject to exceptions for taxes levied for education), and mortgage and recording taxes. The agreement text repeatedly describes a 20‑year maximum abatement period for ad valorem taxes and for personal property items; elsewhere in the resolution record a 10‑year abatement period is also referenced. The commission record does not resolve that inconsistency; the agreement packet will be forwarded to the Alabama Department of Revenue as required by the cited Brownfield Development Tax Abatement Act (Ala. Code § 40‑9C‑1 et seq.).
Under the terms in the packet, the 20‑year language, when present, is applied as follows: real property improvements’ abatement period begins the first Oct. 1 lien date after the project is placed in service; each item of personal property would have its own 20‑year abatement beginning the first Oct. 1 lien date on which it becomes subject to Alabama ad valorem taxes. The agreement language also states the company remains liable for any educational ad valorem taxes and for any local taxes levied for educational or capital improvement purposes that are not abatable.
The resolution authorizes the chairman to execute the agreement and any documents necessary to implement the abatements and directs that a certified copy of the resolution and the agreement be forwarded to the appropriate taxing authorities and the Alabama Department of Revenue in accordance with the Act. The agreement text also contains standard provisions governing successors and assigns, amendment in writing, severability, and cooperation to ensure the company receives the maximum abatements permitted.
The commission packet identifies the statutory basis cited in the record as the Brownfield Development Tax Abatement Act (Ala. Code § 40‑9C‑1 et seq.) and references definitions in Ala. Code § 40‑9C‑3(5). The agreement also references mortgage/recording tax provisions in Chapter 22, Title 40, Code of Alabama (1975).
Next steps recorded in the packet and resolution text include execution of the agreement by the chairman and transmittal of a certified copy to the Alabama Department of Revenue and applicable local taxing authorities. The resolution does not record any additional conditions, community benefits, or employment commitments beyond the capital investment figure and the statutory abatements included in the agreement text.
