HB63 Alabama 2010 Session

Summary

Primary Sponsor

H. Mac Gipson

Republican

Session

Regular Session 2010

Title

Ad valorem tax, classifications of property, aircraft, privately owned, noncommercial, included within Class IV Property, Amendment 373 (Section 217, Recompiled Constitution of Alabama of 1901, as amended), am'd., const. amend.

Summary

This bill would add privately owned, noncommercial aircraft to Class IV for Alabama ad valorem taxes (property taxes), affecting how they are taxed.

What This Bill Does

If enacted, privately owned, noncommercial aircraft would be classified as Class IV property for ad valorem tax purposes and taxed under Class IV rules, including the 15% assessment ratio of fair market value. This change could lower the taxable value and tax burden of such aircraft compared with higher tax-class rates, depending on local millage rates and classifications. The amendment would be approved by voters in a statewide election and implemented under existing tax administration procedures, with the Legislature authorized to enact implementing laws and exemptions.

Who It Affects

• Privately owned noncommercial aircraft owners (individuals or groups) who would have their aircraft taxed under Class IV rules, potentially lowering their ad valorem tax bills.
• Counties, municipalities, and other taxing authorities that administer ad valorem taxes and may need to adjust assessment practices and ensure uniform application, with potential revenue impacts.

Key Provisions

• Adds privately owned, noncommercial aircraft to Class IV for ad valorem taxation.
• Class IV would be assessed at 15% of fair market value for both state and local ad valorem taxes.
• Sets maximum assessment ratios by class: Class I 2%, Class II 1.5%, Class III 1%, and Class IV 1.25% of fair market value.
• Any proposed adjustment to assessment ratios must go through a process: public hearing by the taxing authority, legislative approval, and majority voter approval in a special election.
• Allows counties to levy up to two mills to reimburse reappraisal costs, with funds and timing governed by statute, and requires balance with existing tax-related provisions and exemptions.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments