Alabama House Bill HB35

Alabama 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Engrossed: 2/3/22
• Refer: 2/3/22

Caption

Limestone Co., ad valorem taxes, senior property tax appraisal, person 65 or older, valuation frozen under certain conditions, const. amend.

Impact

The proposed amendment, if enacted, would change the way property taxes are calculated for senior citizens in Limestone County. By allowing a tax exemption that freezes property values, it would directly benefit seniors by enabling them to retain more of their income or financial resources, as they would not be subject to increasing tax assessments based on property value appreciation. This could encourage aging in place and reduce the financial strain on retirees living on fixed incomes.

Summary

House Bill 35 proposes an amendment to the Alabama Constitution of 1901 specifically for Limestone County, allowing qualified taxpayers who are 65 years of age or older to claim a senior property tax exemption. This exemption is applicable to real property that the taxpayer has owned and occupied as their principal residence for at least five years before claiming the exemption. This legislation aims to provide financial relief to senior citizens by freezing the assessed value of their property for tax purposes, potentially reducing their property tax burden significantly.

Contention

While supporters of HB35, including local legislators and senior advocacy groups, argue that it addresses the pressing need for tax relief among the aging population, there are points of contention regarding its fiscal implications for local government revenue. There are concerns that granting such exemptions might lead to reduced funding for essential public services that depend on property tax revenue, potentially shifting the tax burden onto younger property owners or businesses in the area. Furthermore, the bill's focus on a specific county raises questions about equity and whether similar measures should be considered statewide.