HB73ENROLLED
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HB73
FYV8C55-3
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
Enrolled, 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
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
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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.
Section 2. This act shall become effective on October
1, 2024.
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1, 2024.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 09-Apr-24, as amended.
John Treadwell
Clerk
Senate 08-May-24 Amended and Passed
House 08-May-24 Concurred in Senate
Amendment
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