Bill > SB100

This bill modifies Alabama's property tax assessment rules by replacing the previous fixed 7% cap on assessed value increases for Class II and Class III properties with a new method tied to the Consumer Price Index (CPI). Under the new provision, property value increases will be limited to the percentage increase in the CPI for urban consumers as published by the U.S. Department of Labor's Bureau of Labor Statistics for the preceding year. The bill maintains several existing exceptions to this limitation, such as new construction, changes in property classification, and certain ownership transfers. The new rules will apply from October 1, 2024, through the fiscal year ending October 1, 2027, and are designed to provide a more flexible and inflation-responsive approach to property tax assessments. The bill specifically affects real property assessed in Alabama, aiming to prevent sudden large increases in property tax valuations by linking increases to a standardized economic indicator. The legislation will become effective on October 1, 2025, but will apply retroactively to October 1, 2024.

Agriculture and Natural Resources

https://alison.legislature.state.al.us/bill-search