HB179 Alabama 2011 Session

Summary

Primary Sponsor

Mike Hill

Republican

Co-Sponsors

William RobertsBarry MooreMike HubbardWes LongRichard BaughnJohn MerrillKen JohnsonJim PattersonDaniel H. BomanMike JonesMicky HammonHoward SanderfordMac McCutcheonGregory CanfieldJay LoveVictor GastonPaul DeMarcoJack WilliamsSteve McMillanJim McClendonSteve ClouseDuwayne BridgesPaul Beckman

Session

Regular Session 2011

Title

Ad valorem tax, definition of residential property expanded to include single family dwellings and lots under construction, Sec. 40-8-1 am'd.

Summary

HB179 expands the ad valorem tax definition of residential property to include single-family homes and lots under construction, creating temporary residential classification during construction and rebuilding.

What This Bill Does

It allows a single-family dwelling and its underlying lot under construction to be classified as residential property for up to 24 months from construction start (with documentation requirements). It also lets home builders treat fully-developed lots as residential property until the home is sold, for up to 24 months, and provides a mechanism to reclassify to Class II or Class III under rules. Additionally, if a dwelling is destroyed or damaged, the residential classification can extend for up to 24 months for rebuilding, with the possibility of a further 24-month extension, and it outlines when this status terminates.

Who It Affects

• Homeowners and home builders of single-family dwellings and underlying lots under construction, who may qualify for temporary residential property classification for up to 24 months from construction start.
• Owners rebuilding after storm damage or destruction who may extend and maintain residential classification during reconstruction (with potential extension) as part of storm-related protection.

Key Provisions

• Expands residential property to include single-family dwellings and underlying lots under construction for up to 24 months from the date construction begins.
• Allows the dwelling to be classified as residential property (instead of Class II) with documented proof of the construction start date; property remains Class II until documentation is approved.
• Authorizes home builders with valid licenses to classify fully-developed lots as residential property until sold or used for other purposes, for up to 24 months.
• Allows reclassification from residential to Class III (instead of Class II) under department rules and with proper documentation; classification as residential continues to be governed by the act’s documentation rules.
• Termination of residential classification occurs after 24 months, if the license is no longer valid, or if ownership changes away from the original applicant.
• Fully-developed lots in platted subdivisions existing at the act’s effective date may be reclassified to Class III for two tax years following the act’s effective date, with proper documentation.
• If a home is destroyed or damaged and uninhabitable, residential classification lasts up to 24 months while rebuilding, with an option to request an additional 24-month extension if rebuilding cannot be completed in time.
• The Department of Revenue may issue rules for uniform identification and assessment of manufactured homes.

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