Section 40-NEW - [Newly enacted section not yet numbered] [Effective 10/1/2024] Limiting assessed value of certain real property for ad valorem tax purposes; exceptions(a) After each county-wide reappraisal, as provided by Article 2, Chapter 7, Title 40, Code of Alabama 1975, and the resulting assessed value of property for ad valorem tax purposes, the tax assessor shall annually compare the assessed value of each real property reappraised or reassessed to the prior year's assessed value. If the assessed value of the property increased, then the tax assessor shall adjust the assessed value of the property pursuant to this section.(b)(1) Class III properties, as defined in Section 40-8-1, Code of Alabama 1975, shall be limited to not more than a seven percent increase in the assessed value of the property from the previous year's assessed value.(2) Class II properties, as defined in Section 40-8-1, Code of Alabama 1975, shall be limited to not more than a seven percent increase in the assessed value of the property from the previous year's assessed value.(c) The limitations provided for in subsection (b) shall not apply to: (1) Real property that has never been assessed.(2) Additions or improvements to real property, including new construction. This shall not include repairs to or ordinary maintenance of an existing structure or the grounds of the property.(3) Change to the classification of the property.(4) Change in ownership of the property, except for any of the following: a. Transfers between spouse or family members for no or nominal consideration, including upon death of owner.b. Transfers due to redemption after foreclosure of a mortgage, tax sale, or tax lien.(5) Property located in a tax increment district created pursuant to Chapter 99 of Title 11.(d) The limitations provided for in subsection (b) shall be effective October 1, 2024 and shall continue through the fiscal year beginning October 1, 2027.Ala. Code § 40-NEW (1975)
Added by Act 2024-344,§ 1, eff. 10/1/2024.