On Wednesday, the Alabama Legislature passed a bill capping property tax increases in the state, providing relief to homeowners and businesses facing steep assessment hikes by setting a cap on annual increases in property tax assessments due to reappraisals at 7%.
HB73 was concurred on by both chambers, and bill sponsors State Rep. Phillip Pettus (R-Killeen) and State Sen. David Sessions (R-Grand Bay) were thanked by state leaders.
“Unexpected double-digit property tax increases are no longer a threat to home and business owners thanks to passage of our tax cap legislation,” Lt. Governor Will Ainsworth said after passage. “Your taxes resulting from reappraisals may not increase more than 7%. Thanks to Sen. Sessions and Rep. Pettus for carrying this bill.”
Unexpected double-digit property tax increases are no longer a threat to home and business owners thanks to passage of our tax cap legislation. Your taxes resulting from reappraisals may not increase more than 7%. Thanks to Sen. Sessions and Rep. Pettus for carrying this bill. pic.twitter.com/L7aFsp28kO
— Will Ainsworth (@willainsworthAL) May 8, 2024
“This is a cap this is not a tax cut,” Sen. Sessions told lawmakers on Wednesday. “Recently in the last few years inflation has been hitting real hard. Housing has been at a deficit and property taxes have been increasing substantially and this just puts a stability cap of 7% per year as the most that it can go up.”
Many lawmakers said they see the same increases in their own districts and this measure will address it, including Speaker of the House Nathaniel Ledbetter.
“Last year, property taxes in my district increased by as much as 40% due to reappraisals. This statewide trend is taxing Alabama families out of homeownership, and I’m proud that the Legislature came together and capped yearly increases at 7%,” Ledbetter said after concurrence between both chambers.
The bill now goes to Governor Kay Ivey for her consideration and signature. Wednesday is Day 29 of the 2024 legislative session. One day remains.
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on Twitter @Grayson270
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