Alabama 2025 Regular Session

Alabama Senate Bill SB100 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB100INTRODUCED
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3	3	SB100
4	4	1N18LZL-1
5	5	By Senators Stutts, Williams, Allen
6	6	RFD: Agriculture, Conservation, and Forestry
7	7	First Read: 05-Feb-25
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12	12	5 1N18LZL-1 01/27/2025 RA (F)RA 2025-314
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14	14	First Read: 05-Feb-25
15	15	SYNOPSIS:
16	16	Under existing law there is a seven percent cap
17	17	on increases in the assessed value of real property.
18	18	This bill would change the cap on increases in
19	19	the assessed value of real property.
20	20	A BILL
21	21	TO BE ENTITLED
22	22	AN ACT
23	23	Relating to property taxes; to amend Act 2023-344, 2024
24	24	Regular Session, now appearing as Section 40-7-2.2, Code of
25	25	Alabama 1975, to change the cap on real property tax
26	26	assessments; and to provide for retroactive effect.
27	27	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
28	28	Section 1. Act 2024-344, Regular Session 2024, now
29	29	appearing as Section 40-7-2.2, Code of Alabama 1975 is amended
30	30	to read as follows:
31	31	"§40-7-2.2
32	32	(a) After each county-wide reappraisal, as provided by
33	33	Article 2, and the resulting assessed value of property for ad
34	34	valorem tax purposes, the tax assessor shall annually compare
35	35	the assessed value of each real property reappraised or
36	36	reassessed to the prior year's assessed value. If the assessed
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64	64	28 SB100 INTRODUCED
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66	66	reassessed to the prior year's assessed value. If the assessed
67	67	value of the property increased, the tax assessor shall adjust
68	68	the assessed value of the property pursuant to this section.
69	69	(b)(1) The percentage increase in the assessed value of
70	70	Class III properties, as defined in Section 40-8-1, shall be
71	71	limited to not more than a seven percentthe percentage
72	72	increase in the Consumer Price Index for all urban consumers
73	73	as published by the U.S. Department of Labor, Bureau of Labor
74	74	Statistics for the immediately preceding year increase in the
75	75	assessed value of the property from the previous year's
76	76	assessed value.
77	77	(2) The percentage increase in the assessed value of
78	78	Class II properties, as defined in Section 40-8-1, shall be
79	79	limited to not more than a seven percent increase the
80	80	percentage increase in the Consumer Price Index for all urban
81	81	consumers as published by the U.S. Department of Labor, Bureau
82	82	of Labor Statistics for the immediately preceding year in the
83	83	assessed value of the property from the previous year's
84	84	assessed value.
85	85	(c) The limitations provided for in subsection (b)
86	86	shall not apply to the following:
87	87	(1) Real property that has never been assessed.
88	88	(2) Additions or improvements to real property,
89	89	including new construction. This subdivision shall not include
90	90	repairs to or ordinary maintenance of an existing structure or
91	91	the grounds of the property.
92	92	(3) Change to the classification of the property.
93	93	(4) Change in ownership of the property, except for any
94	94	of the following:
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124	124	of the following:
125	125	a. Transfers between spouse or family members for no or
126	126	nominal consideration, including upon death of owner.
127	127	b. Transfers due to redemption after foreclosure of a
128	128	mortgage, tax sale, or tax lien.
129	129	(5) Property located in a tax increment district
130	130	created pursuant to Chapter 99 of Title 11.
131	131	(d) The limitations provided for in subsection (b)
132	132	shall be effective October 1, 2024, and shall continue through
133	133	the fiscal year beginning October 1, 2027.
134	134	Section 2. This act shall become effective on October
135	135	1, 2025, and shall apply retroactively to October 1, 2024.
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