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 from $40,000 to $100,000. It introduces new legal language to clarify exemptions for various entities, including educational, religious, and charitable institutions, as well as hospitals and corporations operating hospitals. The bill also includes technical revisions to update existing code language and refines the language regarding exemptions by removing the phrase "the State" and replacing it with "of" for clarity. Additionally, it adds exemptions for certain personal items owned by individuals, such as electrical appliances and musical instruments.

Moreover, the bill allows counties or municipalities to adopt this exemption for their own ad valorem taxes, contingent upon passing the necessary resolution or ordinance at least 90 days before October 1 of the electing year. It also specifies that all aircraft and related equipment used by licensed air carriers with a hub operation in the state, HUD 202 properties, and vessels predominantly used in commercial fishing are exempt from ad valorem taxes. The bill is set to take effect on October 1, 2025.

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