March 11, 2024 Group Watch: Property Tax Cap Bill Advances:
A bill to cap annual property tax increases was approved by an Alabama House committee last week, but changes are expected when it is debated on the House floor. The bill would limit annual tax hikes by capping increases on annual assessments of property. There is currently no cap on how much someone’s property taxes might increase year-to-year. As approved in committee, Class III properties, which include single family homes and land used for agricultural production, and Class II properties, which include commercial and business properties, would be capped at 5 percent per year. A fiscal note on the bill says it will cut revenue to state and local governments and schools by about $67 million per year.
