Grandma Keeps Her Promise

{TheChronicle.cc} –Property owners along the Alabama Coast may soon see some relief from rising property taxes. Governor Kay Ivey has signed legislation that limits annual property tax increases following reappraisals.

The new law, House Bill 73 (HB73), sets a cap on property tax increases at 7% per year after reappraisals. Initially, the bill proposed capping residential property tax increases at 3% and commercial property increases at 5%. However, an amendment introduced by Pettus, influenced by the League of Municipalities and county commissions, unified the cap at 7% for both residential and commercial properties.

Originally, the bill included a three-year sunset clause, requiring the legislature to re-approve it every three years. The Senate extended this period to five years.

The law includes several exceptions to the 7% cap:

- Real property that has never been assessed.

- Additions or improvements to real property, such as new construction (excluding repairs or ordinary maintenance).

- Changes in the classification of the property.

- Changes in property ownership, except for transfers between spouses or family members for little or no consideration, transfers upon the owner's death, and transfers due to redemption after foreclosure or tax sale.

- Property located in a tax increment district.

Governor Ivey signed the legislation on Thursday, and it will take effect on October 1.