SB100 Alabama 2025 Session

Summary

Primary Sponsor

Larry StuttsSenator

Republican

Session

2025 Regular Session

Title

Relating to Property Tax; amending the cap on the assessed value of real property

Summary

SB100 would change the cap on how much real property assessments can increase after county-wide reappraisals, with new limits for Class II and III properties and several exemptions, applying retroactively for a temporary period.

What This Bill Does

It amends Section 40-7-2.2 to limit annual increases in the assessed value of real property after reappraisal. For Class II and Class III properties, the increase is capped at a level tied to a seven percent threshold and the prior year's CPI increase, per the bill's text. The bill also lists exceptions where the cap does not apply, such as properties never assessed, additions or improvements (including new construction), changes in classification, certain ownership transfers, and property in a tax increment district. The cap provisions are effective Oct 1, 2024 through the fiscal year beginning Oct 1, 2027, with the act becoming effective Oct 1, 2025 and applying retroactively to Oct 1, 2024.

Who It Affects

• Property owners with real property classified as Class II or Class III in counties undergoing county-wide reappraisals, whose assessed values would be limited by the new cap.
• Property owners making additions or improvements, experiencing changes in ownership (with specified exceptions), changing the property's classification, or owning property in a tax increment district (these cases are either affected by the cap or explicitly excluded from its limits).

Key Provisions

• After each county-wide reappraisal, the assessor compares the new assessed value to the prior year's value and adjusts if there is an increase.
• For Class III properties and Class II properties, the annual increase in the assessed value is limited to not more than seven percent and/or the CPI increase for the immediately preceding year, as specified in the bill.
• The limitations do not apply to: real property never assessed; additions/improvements/new construction (excluding repairs or ordinary maintenance); change in classification; certain ownership transfers (with specified exceptions); and property located in a tax increment district.
• The cap provisions apply from October 1, 2024 through the fiscal year starting October 1, 2027.
• The act becomes effective October 1, 2025 and applies retroactively to October 1, 2024; the bill amends Act 2023-344, Section 40-7-2.2.

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