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 state ad valorem tax, raising the limit for property used exclusively for hospital purposes and shares of capital stock of hospital-operating corporations to $75,000. It also introduces new exemptions, including the exemption of all warrants issued by county and city boards of education for school purposes, and specifies that no license or taxation shall be collected from state or county fairs, agricultural associations, or athletic stadiums used for intercollegiate athletics. Additionally, the bill removes outdated language, such as the phrase "the State" in the context of franchise taxes, and makes technical revisions for clarity and consistency.

Moreover, the bill HB543 deletes the reference to "subdivision (b)(4) of" Section 40-11-1(b)(4) and increases the exemption threshold for tangible personal property owned by businesses from $40,000 to $100,000 in market value. It allows counties or municipalities to adopt this exemption for local ad valorem taxes, provided the 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. The bill also clarifies the criteria for "hub operation" for air carriers, exempts HUD 202 property from ad valorem taxes, and includes provisions for vessels and equipment used in commercial fishing, with the act set to take effect on October 1, 2025.

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