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 technical revisions to update the legal language for clarity and consistency. Key changes include the deletion of the phrase "the State" in the context of franchise taxes, replaced with "of," and the addition of new exemptions for warrants issued by county and city boards of education for school purposes, as well as personal property items like electrical appliances and musical instruments.

Additionally, the bill raises the exemption limit for tangible personal property owned by businesses from $40,000 to $100,000, allowing counties or municipalities to adopt this exemption for their own ad valorem taxes with a new requirement for resolution adoption at least 90 days prior to October 1 of the electing year. It also clarifies the definition of "hub operation" for air carriers, exempts all HUD 202 property from ad valorem taxes, and includes provisions for commercial fishing vessels and equipment. The act is set to take effect on October 1, 2025.

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