HB73 Alabama 2024 Session

Summary

Primary Sponsor

Phillip PettusRepresentative

Republican

Session

Regular Session 2024

Title

Real Property Tax Assessment

Summary

HB73 caps annual increases in assessed value for Class II and III real property at 7% after county-wide reappraisals, with certain exceptions, from Oct 1, 2024 through the fiscal year beginning Oct 1, 2027.

What This Bill Does

After each county-wide reappraisal, the tax assessor compares the new assessed value to the previous year's value. If the value has increased, the increase for Class II and III properties is limited to 7% of the prior year's assessed value. The cap does not apply to certain items, including properties never assessed, additions or improvements (including new construction), changes in classification, changes in ownership under specific exceptions, and property in a tax increment district. Repairs and ordinary maintenance do not count toward the cap. The act becomes effective Oct 1, 2024 and the cap remains in effect through the fiscal year beginning Oct 1, 2027.

Who It Affects

• Owners of Class II and Class III real property who would see annual assessment increases limited to 7% after reappraisal (subject to listed exceptions).
• Tax assessors and county tax offices that administer the cap and determine when exceptions apply.

Key Provisions

• Cap on annual increase in assessed value for Class II and III properties to 7 percent from the prior year after a county-wide reappraisal.
• Assessors must compare new values after reappraisal with the prior year's values and apply the cap if there is an increase.
• Exceptions to the cap include properties never assessed, additions or improvements including new construction, changes in property classification, changes in ownership under specified conditions (including certain family transfers and foreclosure redemptions), and property located in a tax increment district.
• Repairs and ordinary maintenance do not count toward increases that trigger the cap.
• Effective date October 1, 2024 and the provision continues through the fiscal year beginning October 1, 2027.

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 & Revenue