This bill pertains to the ad valorem taxation of real property in Alabama and seeks to limit the increase in assessed value of certain properties for tax purposes. The bill stipulates that after each county-wide reappraisal, the tax assessor must compare the new assessed value of each real property to the value from the previous year. If there is an increase, the assessor is required to adjust the assessed value in accordance with the provisions of the bill. Specifically, the bill limits the increase in assessed value for Class III and Class II properties to no more than seven percent from the previous year's value.

However, there are exceptions to these limitations. The bill does not apply to properties that have never been assessed, properties with additions or improvements (excluding repairs or ordinary maintenance), changes in property classification, changes in ownership (with certain exceptions for family transfers and foreclosures), or properties located in tax increment districts. The limitations on assessed value increases will take effect on October 1, 2024, and will remain in effect 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 day. The act is set to become effective on October 1, 2024.

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