The bill aims to limit the assessed value of certain real properties for ad valorem tax purposes in Alabama, specifically targeting Class II and Class III properties. Following a county-wide reappraisal, tax assessors will compare the new assessed value of properties to the previous year's value. If there is an increase, the assessed value will be capped at a maximum of seven percent for both Class II and Class III properties. However, this limitation will not apply to properties that have never been assessed, new constructions, changes in property classification or ownership (with certain exceptions), and properties located in tax increment districts.

The limitations outlined in the bill will take effect on October 1, 2024, and will remain in place until the fiscal year beginning October 1, 2027. The bill also includes provisions for specific exemptions from the assessed value increase, such as transfers between family members and properties undergoing foreclosure. The legal language inserted into the current law includes the establishment of these limitations and their effective dates, while no deletions from existing law are specified in the summary provided.

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