Bill > HB543

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.

Budget and Finance

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