A bill for a tax levy that would help fund a proposed Birmingham stadium has been signed into law, providing more certainty about one aspect of the plan.
In a matter that was being considered by Alabama lawmakers, a three-percent tax on car rentals and leases in Jefferson County is to provide revenue to help pay for a new Birmingham stadium. With a price tag of $175 million, the proposed outdoor stadium is being included in the Birmingham-Jefferson Convention Complex‘s 20-year, $300-million master plan. The stadium would be used for University of Alabama Birmingham football as well as other large outdoor events and sports, including soccer.
The state House of Representatives approved the bill to levy the three-percent tax on Tuesday, sending it to Alabama governor Kay Ivey, who has signed it into law. More from AL.com:
The tax is just one component in the project funding plan. The Birmingham City Council has passed a resolution of intent to provide $3 million a year over 30 years to the project but has not given that final approval. The Jefferson County Commission has pledged $1 million a year over 30 years.
The BJCC Authority would pay $10.7 million a year toward the debt service. Lease payments by UAB, naming rights and other marketing opportunities are projected to contribute $4 million a year over 10 years.
Technically, the tax will not take effect until the BJCC Authority makes its final commitment to moving forward with the stadium project. Previous reports have indicated that the stadium could open as early as 2020.
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