HB543 Alabama 2025 Session

Updated Feb 23, 2026

Summary

Primary Sponsor: Chip BrownRepresentative
Republican
Session: 2025 Regular Session
Title: Taxation, to increase the market value threshold amount for which tangible personal property is exempt from state ad valorem taxation
Summary: HB543 raises the state exemption for tangible personal property from $40,000 to $100,000 in market value and includes minor technical updates to the tax code.
What This Bill Does
It increases the state exemption threshold for tangible personal property from $40,000 to $100,000 in market value, meaning qualifying business property up to that amount would be exempt from the state ad valorem tax. The exemption applies to a broad set of property categories, and counties and municipalities can choose to extend the same exemption to local ad valorem taxes by passing an ordinance. The bill also includes nonsubstantive, technical revisions to update the code language to current style. It becomes effective on October 1, 2025.

Who It Affects
Businesses and property owners whose tangible personal property used in business is valued up to $100,000 would be exempt from state ad valorem tax on that property.
County and municipal governments and tax assessors, since they would have the option to apply the same exemption to local taxes through a local ordinance.

Key Provisions
Raises the state-level tangible personal property exemption from $40,000 to $100,000 in market value.
Allows counties and municipalities to adopt the same local exemption by ordinance, with the ordinance must be adopted at least 90 days prior to October 1, 2023, or 90 days prior to October 1 of the electing year.
Includes nonsubstantive technical revisions to update code language to current style.
Effective date: October 1, 2025.

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