The bill pertains to ad valorem taxation and aims to limit the increase in assessed value of certain real properties for ad valorem tax purposes, with specific exceptions. After a county-wide reappraisal, tax assessors are required to compare the new assessed value of real property with the previous year's value. If there is an increase, the assessed value is adjusted according to the bill's provisions. The bill stipulates that Class III and Class II properties, as defined in Section 40-8-1 of the Code of Alabama 1975, shall not experience more than a seven percent increase in assessed value from the previous year.

However, the bill outlines exceptions where these limitations do not apply. These include properties that have never been assessed, additions or improvements to property (excluding repairs or ordinary maintenance), changes in property classification, changes in ownership (with certain exceptions for family transfers and foreclosures), and properties located in tax increment districts. The limitations on assessed value increases will take effect on October 1, 2024, and will continue through the fiscal year beginning October 1, 2027. The bill includes insertions indicating that it was enrolled, amended, and passed by the Senate on May 8, 2024, and that the House concurred with the Senate amendment on the same date. The act is set to become effective on October 1, 2024.

Statutes affected:
Engrossed: 40-8-1
Enrolled: 40-8-1