Alabama DOR Issues Ruling on Payments in Lieu of Taxes for Cooperative District

The Alabama Department of Revenue (DOR) issued a revenue ruling addressing whether a local redevelopment authority may require payments in lieu of taxes (PILOTs) from lessees and attendees at a park owned by a cooperative district instead of paying certain taxes. The DOR determined that the authority can require lessees and attendees to pay PILOTs to the district in lieu of state ad valorem, income, sales, and use taxes, but not in lieu of lodging taxes. The ruling also stated that the district can use PILOT proceeds to improve the park. [Ala. Dep’t of Revenue, Revenue Ruling No. 24-001, 09/26/24] ...