HB181 Alabama 2017 Session

Summary

Primary Sponsor

Nathaniel LedbetterRepresentative

Republican

Session

Regular Session 2017

Title

Taxation, exempt small business owners having personal business property of less than $20,000 from tax

Summary

This bill would exempt certain small Alabama-based businesses from state property tax on tangible business personal property valued at $20,000 or less.

What This Bill Does

If enacted, the bill would bar the state from collecting property tax on tangible business personal property up to $20,000 for qualifying small businesses. It defines a qualifying small business owner as an Alabama-based business with 75 or fewer employees in the tax year before the year a property tax return is filed. The exemption becomes effective on the first day of the third month after the bill is passed and approved by the Governor, or when it otherwise becomes law.

Who It Affects

• Small business owners in Alabama with 75 or fewer employees and tangible business personal property valued at $20,000 or less (headquartered or with principal place of business in Alabama).
• State revenue from the state property tax on eligible tangible business personal property would be reduced because those taxes would not be collected from these qualifying businesses.

Key Provisions

• Exempts tangible business personal property valued at $20,000 or less from state property tax for qualifying small business owners.
• Defines 'small business owner' as an Alabama-based business with headquarters or principal place of business in the state and 75 or fewer employees in the prior tax year.
• Provides that the exemption takes effect on the first day of the third month after passage and governor’s approval (or when it becomes law by other means).

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