HB259 Alabama 2023 Session

Summary

Primary Sponsor

Margie WilcoxRepresentative

Republican

Session

Regular Session 2023

Title

Relating to tax abatements; to specify that the method of determining fair market value of real or personal property by a tax abatement recipient appealing an ad valorem tax assessment in circuit court shall be the same method used by the county granting the tax abatement; and to exclude consideration of obsolescence in determining fair market valuation of real or personal property for the duration of an abatement.

Summary

HB259 would require industrial or research enterprises under tax abatements to use the county’s method for fair market value when appealing taxes and would ban considering obsolescence during the abatement period.

What This Bill Does

If an industrial or research enterprise appeals its ad valorem tax assessment in circuit court, the value calculation must use the same method used by the county granting the abatement. During the entire abatement period, obsolescence (economic or functional) cannot be considered in determining the property's fair market value. The bill also defines what economic and functional obsolescence mean and applies these rules to real or personal property under an abatement.

Who It Affects

• Industrial or research enterprises that receive ad valorem tax abatements, who must use the county’s valuation method and cannot count obsolescence during the abatement.
• County governments that grant the abatements, whose valuation method will be the controlling method for appeals and whose valuations during abatements cannot include obsolescence.

Key Provisions

• Defines economic obsolescence and functional obsolescence.
• In circuit court appeals, the enterprise must use the county’s method for determining the fair market value of industrial development property.
• During the abatement period, no form of obsolescence may be considered in fair market valuations of industrial development property.
• Effective date: the act becomes law on the first day of the third month after passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.