HB292 Alabama 2023 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2023

Title

Relating to exemptions from ad valorem taxation; to amend Section 40-9-1, as last amended by Act 2022-199 of the 2022 Regular Session, Code of Alabama 1975; to exempt certain aircraft from ad valorem taxation.

Summary

HB292 would expand ad valorem tax exemptions in Alabama, notably exempting aircraft and related equipment used by hub-based air carriers, with the measure taking effect Oct 1, 2024.

What This Bill Does

Amends Section 40-9-1 to specify property that shall be exempt from ad valorem taxes. The key change adds exemptions for aircraft, replacement parts, and ground support equipment used by certificated or licensed air carriers with hub operations in Alabama to transport people or property, for intrastate, interstate, or foreign commerce. It also includes exemptions for HUD 202 property, and for property owned by certain hospitals, veterans' and fraternal organizations, educational and charitable institutions, libraries, and other listed categories. The act states these are the only exemptions from ad valorem taxation and becomes effective October 1, 2024, upon governor approval.

Who It Affects

• Airlines and aircraft operators with hub operations in Alabama will have eligible aircraft, parts, and ground support equipment exempt from ad valorem taxes.
• Hospitals meeting charity-care criteria (at least 15% charity care) and HUD 202 housing properties may qualify for exemptions on applicable property.
• Property owned by veterans and fraternal organizations (e.g., American Legion, Veterans of Foreign Wars, Disabled American Veterans, Elks, Eagles, Moose) used exclusively by the organization may be exempt.
• Alabama National Guard units and property used exclusively by those units may be exempt if annual rent does not exceed taxes.
• Other listed categories, such as certain educational, religious, charitable institutions and related property, as well as specified personal and agricultural property, could be exempt under the bill.

Key Provisions

• Adds exemption for aircraft, replacement parts, components, systems, and ground support equipment used by certificated/licensed air carriers with hub operations in Alabama for transporting people or property.
• Exempts aircraft and related equipment used in intrastate, interstate, or foreign commerce by hub-based carriers.
• Provides HUD 202 property exemption from ad valorem taxes.
• Allows hospital property used for charity care (minimum 15% of business) to be exempt up to $75,000, with certification to the county tax assessor.
• Exempts property of certain veterans and fraternal organizations when used exclusively by those organizations.
• Exempts property owned by Alabama National Guard units used exclusively by the unit, with rent not exceeding state/local taxes.
• Enumerates numerous other exempt categories (including certain educational, religious, charitable property, and specific farm and agricultural property) as part of the list of exempt properties.

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

Subjects

Taxation, certain aircraft exempt from ad valorem taxation