HB606 Alabama 2014 Session

Summary

Primary Sponsor

Jim Patterson

Republican

Session

Regular Session 2014

Title

Personal property, exempt from ad valorem tax, individual tangible taxable assets exempt from ad valorem tax, excluding real property, Sec. 40-9-1 am'd.

Summary

HB606 would broaden Alabama's ad valorem tax exemptions by creating a wide range of new exemptions, including a small-asset exemption for personal property and numerous category-based exemptions for certain organizations and property.

What This Bill Does

The bill amends Section 40-9-1 to specify many types of property and entities that shall be exempt from ad valorem taxation. It adds a specific exemption for all individual tangible taxable assets with an original cost of $100 or less. It also creates or expands exemptions for hospitals (up to $75,000 for property or shares, with charity and filing conditions), government and educational property, religious and charitable property, Alabama National Guard property, cotton and farm products, manufactured Alabama-made articles, HUD 202 housing, and other categories. The exemption for hospitals includes thresholds and reporting requirements; the measure becomes effective immediately upon passage.

Who It Affects

• Individuals who own small personal tangible assets (worth $100 or less) would see those assets exempt from ad valorem tax.
• Hospitals and hospital-related corporations may receive property tax exemptions up to specified dollar amounts (e.g., $75,000) with charity-related requirements and filing provisions.
• Banks and other financial institutions, as well as deposits and credits held in banks, would be exempt from ad valorem tax.
• Religious, educational, and charitable organizations (and properties used exclusively by them) would receive broader exemptions, subject to limitations about rental or business use.
• State and local government property (bonds, real and personal property), and property of the Alabama National Guard and its units, could be exempted.
• Agricultural producers and related property (cotton, farm products, tractors and implements used in farming, licensed cotton warehouses) would receive exemptions.
• Manufacturers and articles produced in Alabama, and HUD-related housing (HUD 202 property) would be exempt under specified conditions.
• Other specific categories included in the bill (e.g., certain equipment for air or maritime commerce, and various specialized assets) would also be exempt according to the bill's detailed provisions.

Key Provisions

• Provision (27): All individual tangible taxable assets, excluding real property, with an original acquisition cost of $100 or less shall be exempt from ad valorem taxation.
• Provision (14): All articles manufactured in Alabama, including pig iron, in the hands of the producer or manufacturer, shall be exempt for 12 months after production or manufacture.
• Provision (25): HUD 202 property (as defined by HUD programs) is exempt from ad valorem taxes.
• Provision (3): The shares of the capital stock of any corporation owning and operating a hospital, to the extent of $75,000 in value, are exempt if the hospital provides charity care as specified.
• Provision (2) and related subsections: Hospitals (real or personal property up to certain thresholds) and hospital-related facilities receive exemptions, with conditions such as at least 15% charity treatment and filing requirements to qualify.
• Provision (1) and related subsections: Broad exemptions for bonds (federal/state), all property real and personal of the United States and state, cemeteries, property used exclusively for religious worship, schools, or charitable purposes (with exclusions for property not used exclusively for such purposes), secured mortgages and security interests, deposits and other credits, and various educational and charitable use cases.
• Provision (16): Property owned by certain veterans organizations (e.g., American Legion, VFW, DAV) used exclusively by those organizations is exempt.
• Provision (25) (HUD property) and Provision (26): Vessels and shrimping equipment used in commercial shrimping, when used in the business, are exempt.

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

Subjects

Taxation