Bill
Bill > HB543
AL HB543
Taxation, to increase the market value threshold amount for which tangible personal property is exempt from state ad valorem taxation
summary
Introduced
04/08/2025
04/08/2025
In Committee
05/06/2025
05/06/2025
Crossed Over
Passed
05/07/2025
05/07/2025
Dead
Signed/Enacted/Adopted
05/14/2025
05/14/2025
Introduced Session
2025 Regular Session
Bill Summary
Taxation, to increase the market value threshold amount for which tangible personal property is exempt from state ad valorem taxation
AI Summary
This bill amends Alabama's tax code to increase the market value threshold for tangible personal property exemption from state ad valorem (property) taxation from $40,000 to $100,000. Specifically, the bill modifies Section 40-9-1 of the Code of Alabama 1975 to expand the tax exemption for businesses' tangible personal property. Under the new provision, businesses can exempt up to $100,000 in market value of their tangible personal property from state ad valorem taxes. Additionally, the bill allows counties and municipalities to voluntarily adopt this same exemption for their local ad valorem taxes by passing a resolution or ordinance at least 90 days before October 1 of the electing year. The bill is set to become effective on October 1, 2025, which means businesses will be able to claim the higher exemption amount starting in the 2025 tax year. This change is likely intended to provide financial relief to small and medium-sized businesses by reducing their property tax burden.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Enacted (on 05/14/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://alison.legislature.state.al.us/bill-search |
BillText | https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB543-enr.pdf |
Fiscal Note - Passed First Chamber | https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/FiscalNotes/FN-7B6WTE2-4.pdf |
Fiscal Note - Introduced | https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/FiscalNotes/FN-7B6WTE2-1.pdf |
BillText | https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB543-int.pdf |
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