HB73ENGROSSED
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HB73
FYV8C55-2
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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PFD: 30-Jan-24
A BILL
TO BE ENTITLED
AN ACT
Relating to ad valorem taxation; to limit the assessed
value of certain real property for ad valorem tax purposes,
with exceptions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (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 annually 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.
(b)(1) Class III properties, as defined in Section
40-8-1, Code of Alabama 1975, shall be limited to not more
than a seven 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
seven percent increase in the assessed value of the property
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seven 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) Additions or improvements to real property,
including new construction. This shall not include repairs to
or ordinary maintenance of an existing structure or the
grounds of the property.
(3) Change to the classification of the property.
(4) Change in ownership of the property, except for any
of the following:
a. Transfers between spouse or family members for no or
nominal consideration, including upon death of owner.
b. Transfers due to redemption after foreclosure of a
mortgage, tax sale, or tax lien.
(5) Property located in a tax increment district
created pursuant to Chapter 99 of Title 11.
(d) The limitations provided for in subsection (b)
shall be effective October 1, 2024 and shall continue through
the fiscal year beginning October 1, 2027.
(e) The Alabama Department of Revenue shall analyze the
data and assessed valuation of Class II and Class III real
property during the most recent reappraisal periods and submit
its findings to the Alabama Ad Valorem Advisory Committee. The
Department and the Committee shall jointly submit findings and
recommendations regarding the valuation impact of the cap on
the assessed value of real property in Alabama and potential
improvements in assessment methodology to help achieve a more
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improvements in assessment methodology to help achieve a more
predictable long-term process to the Governor, the Lieutenant
Governor, the President Pro Tempore of the Senate, the Speaker
of the House of Representatives, and to the Legislative
Services Agency no later than December 31, 2026.
Section 2. This act shall become effective on October
1, 2024.
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1, 2024.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means General
Fund
................06-Feb-24
Read for the second time and placed
on the calendar:
1 amendment
................06-Mar-24
Read for the third time and passed
as amended
Yeas 97
Nays 1
Abstains 2
................09-Apr-24
John Treadwell
Clerk
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