Alabama Constitution Section 224 Limitation on county indebtedness
Alabama Constitution – Section 224: Limitation on County Indebtedness
Summary:
Section 224 of the Alabama Constitution places strict limits on the amount of debt that any county in the state can legally incur.
Key Provisions:
Debt Limit Based on Assessed Property Value:
A county cannot become indebted (through borrowing, bonds, etc.) in an amount exceeding 5% of the value of taxable property within the county.
The value used is the assessed value, as determined for state taxation purposes.
Exclusion of Existing Debts:
This limit does not include debts that existed prior to the ratification of the Constitution.
Voter Approval Required:
Any new debt that is proposed must be authorized by a vote of the people in the county.
A majority of qualified voters must approve the indebtedness.
Purpose and Implications:
Fiscal Responsibility: This provision helps prevent counties from taking on unsustainable levels of debt.
Local Control: It ensures that voters have a direct say before a county can commit to borrowing large sums.
Debt Ceiling Enforcement: By tying the debt ceiling to property value, it automatically scales with the county’s economic capacity.
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