The bill amends Section 40-9-1 of the Code of Alabama 1975 to increase the market value threshold for tangible personal property exempt from the state ad valorem tax, raising it from $40,000 to $100,000 for businesses. It introduces new legal language to clarify exemptions for property owned by educational, religious, and charitable institutions, as well as hospitals providing charity care. The bill also retains existing exemptions for veterans' organizations, literary institutions, and agricultural products while adding new exemptions for items like electrical appliances and grain bins. Additionally, it allows counties or municipalities to adopt this exemption for local ad valorem taxes, provided the necessary resolution or ordinance is passed at least 90 days before October 1 of the electing year, removing the previous requirement for this to occur 90 days prior to October 1, 2023.

Moreover, the bill deletes outdated legal language, such as references to "the State" of Alabama, and clarifies the criteria for "hub operations" for air carriers, detailing specific requirements for flight departures and passenger exchanges. It also exempts HUD 202 property from ad valorem taxes and includes provisions for vessels and equipment used in commercial fishing. The act is set to take effect on October 1, 2025, aiming to modernize the tax exemption framework to better reflect current practices and values.

Statutes affected:
Introduced: 40-9-1
Enrolled: 40-9-1