SB349 Alabama 2023 Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

Regular Session 2023

Title

Relating to current use value of class III property current use value; to amend Section 40-7-25.3, Code of Alabama 1975, to revise the look back period for assessing ad valorem taxes on current use property.

Summary

SB349 would revise the look-back period for ad valorem taxes on Class III current-use property and add a mechanism to collect additional taxes if the property is later converted to a non-qualified use.

What This Bill Does

If current-use Class III property is converted to a non-qualified use within two years of sale or disposition, starting the Oct 1 after conversion the bill would require additional taxes calculated using the greater of the sale price or current fair market value for each of the three tax years preceding the conversion. The tax assessor would compute these amounts and they would become a lien on the property. The property owner must notify the tax assessor between Oct 1 and Jan 1 after the conversion, and if only part of a parcel is converted, the assessor would apportion and list that converted portion as a separate parcel. The change would take effect the first day of the third month after the bill passes and is approved.

Who It Affects

• Owners of Class III property currently taxed at current-use value who convert their property to a non-qualified use within two years of sale or disposition (potentially owing additional taxes for prior years).
• County tax assessors and tax offices, who would determine and levy the additional taxes and manage notices, apportionment, and lien filings.
• Property owners who convert only a portion of a parcel, who would see an apportioned amount of additional taxes listed as a separate parcel.
• Property buyers and sellers involved in transactions where current-use status is changed to a non-qualified use within the specified time frame.

Key Provisions

• Amends Section 40-7-25.3 to govern additional ad valorem taxes when current-use Class III property is converted to a non-qualified use within two years of sale or disposition.
• Imposes an additional tax starting with the October 1 following the conversion, computed using the greater of the sale price or fair market value at the time of conversion for each of the three prior ad valorem tax years.
• Requires the property owner to notify the county tax assessor between October 1 and January 1 after the conversion.
• The tax assessor computes the additional taxes and these become a lien on the property, treated the same as other taxes.
• If only part of a parcel is converted, the assessor must apportion the additional tax to the converted portion and list it as a separately assessed parcel.
• Effective date: 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.

Subjects

Current use property valuation, revising the rollback period for assessing ad valorem taxes.