Alabama House Signs New Property Tax Bill Capping Increases

The Alabama House of Representatives has successfully passed HB 73, a bill designed to cap the increase in assessed property values at 7%. Sponsored by Rep. Phillip Pettus, R-Killen, the legislation aims to alleviate the burden of steep property tax increases on both residential and commercial property owners. With overwhelming support, the bill was passed in the House with a 97-1 vote and has since cleared the Senate and been signed into law by the governor. Set to take effect in the 2025 tax year, the cap will be in place through 2027, when it will be up for review and potentially renewed.

Proponents of the bill, including Alabama State Schools Superintendent Eric Mackey, believe the 7% cap strikes a fair balance that supports the needs of most school districts while providing much-needed relief to property owners. Rep. Brett Easterbrook, R-Fruitdale, highlighted the positive impact on families and small businesses who have struggled with rising property taxes. Although some lawmakers expressed concerns about the potential impact on local government revenues, the measure is seen as a crucial step in protecting homeowners and small business owners from significant tax hikes. With close monitoring and a provision for future review, the bill sets a precedent for balancing fiscal responsibility with taxpayer protection. The experts at Ryan will be available for any questions regarding this new bill.