HB311 Alabama 2010 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2010

Title

Ad valorem tax, definition of residential property expanded to include dwellings under construction, Sec. 40-8-1 am'd.; Act 2009-508, 2009 Reg. Sess. am'd.

Summary

HB311 expands ad valorem tax rules to treat dwellings under construction as residential property for up to 24 months.

What This Bill Does

It adds dwellings under construction and their underlying lots to the definition of residential property for ad valorem taxes. During the construction period—and up to 24 months from the start of construction—these properties would be taxed as residential property under Class III at the 10% assessment rate. After 24 months, if the property is not sold or used for a non-dwelling purpose, the new definition would no longer apply, and the property would be taxed under other applicable classifications; the bill also preserves existing exemptions for religious, educational, and charitable property and adds rulemaking authority for manufactured homes.

Who It Affects

• Owners or builders of single-family dwellings on their own lots that are under construction, who would have their property taxed as residential property during the construction period up to 24 months.
• Local property tax assessors, county and municipal tax authorities, and other taxing officials responsible for classifying and assessing ad valorem property under the new rule.
• Owners of properties that will ultimately be used as a single-family dwelling, for whom the 24-month residential treatment applies if the property is sold or repurposed after construction.
• Religious, educational, or charitable property owners remain exempt from ad valorem taxes under existing law (unchanged by the bill).

Key Provisions

• Section 40-8-1 is amended to include dwellings under construction and the underlying lot as Residential Property for ad valorem tax purposes.
• Residential Property includes single-family dwellings under construction and after construction, until sold or used for a non-dwelling purpose, for up to 24 months from the date construction begins.
• During this period, such property would be classified as residential (Class III) and taxed at the 10% assessment rate used for residential property.
• Exemptions for religious, educational, charitable property, as well as specific organizational properties (e.g., Masonic lodges, Knights of Columbus homes, union halls) remain in place, continuing to be exempt under existing law.
• The Department of Revenue is given authority to issue rules for uniform identification and assessment of manufactured homes.
• The act becomes effective on the first day of the third month after its passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal