HB73INTRODUCED
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HB73
GW37CC-1
By Representatives Pettus, Crawford, Reynolds, Shaver,
Stringer, Moore (P), Shirey, Brown, Fidler, Lipscomb, Givens,
Daniels, Simpson, Shedd, Lee, Harrison, Ingram, Lovvorn,
Hulsey, Oliver, Rigsby, Ledbetter, Collins
RFD: Ways and Means General Fund
First Read: 06-Feb-24
PFD: 30-Jan-24
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9 GW37CC-1 08/14/2023 RA (F)RA 2023-2719
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PFD: 30-Jan-24
SYNOPSIS:
Under existing law there is no limit on
increases in assessed value of real property.
This bill would provide for a cap on real
property tax assessments under certain conditions.
A BILL
TO BE ENTITLED
AN ACT
Relating to property taxes; to add a new section to the
Code of Alabama 1975, to provide a cap on real property tax
assessments under certain conditiions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. A new section is added to the Code of
Alabama 1975, to read as follows:
(a) After each county-wide reappraisal, as provided by
Article 2, Chapter 7, Title 40, Code of Alabama 1975, and the
resulting assessed value of property for ad valorem tax
purposes, the tax assessor shall compare the assessed value of
each real property reappraised or reassessed to the prior
year's assessed value. If the assessed value of the property
increased, then the tax assessor shall adjust the assessed
value of the property pursuant to this section.
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value of the property pursuant to this section.
(b)(1) Class III properties, as defined in Section
40-8-1, Code of Alabama 1975, shall be limited to not more
than a three percent increase in the assessed value of the
property from the previous year's assessed value.
(2) Class II properties, as defined in Section 40-8-1,
Code of Alabama 1975, shall be limited to not more than a five
percent increase in the assessed value of the property from
the previous year's assessed value.
(c) The limitations provided for in subsection (b)
shall not apply to:
(1) Real property that has never been assessed.
(2)Substantial improvements to real property, including
new construction.
(3) Change in ownership of the property.
Section 2. This act shall become effective on October
1, 2024.
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