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FISCAL NOTE
House Bill 73
Committee: Finance and Taxation General FundSponsor: Representative Phillip Pettus
Analyst: Riley Aaron Date: 04/17/2024
House Bill 73 as passed the House of Representatives could decrease potential future ad
valorem tax receipts collected on Class II and Class III properties to the following funds by the
estimated annual amounts listed by capping growth in the assessed value of Class II and Class
III properties at 7% each, of the assessed value of the previous year, pursuant to the provisions
of this bill. These estimates are based on the average annual growth in assessed values for Class
II and Class III properties between 2019 and 2022 (taxes collected in Fiscal Years 2020 through
2023). The cap on the growth in the assessed value of these properties shall begin in fiscal year
2025 and continue through fiscal year 2028.
Source State CountySchoolMunicipalTotal
Ad Valorem
Tax
Public School Funds: $127k
$854k$0 $730k$1.13M
State General Fund: $106k
Veterans' Assistance Fund: $42k
Alabama Historical Commission:
$423
Total: $275k
In addition, this bill would increase the administrative obligations of the Alabama Department
of Revenue to analyze the data and assessed valuation of these properties and report findings
regarding the valuation impact of the cap.