Alabama § 40-7-2.2 Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions

Alabama Statutes

§ 40-7-2.2 — Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions

Alabama § 40-7-2.2

Title 40Revenue and Taxation

Ch. 7Assessment of Taxes Generally

Art. 1General Provisions

This text of Alabama § 40-7-2.2 (Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-7-2.2 (2026).

Text

(a)After each county-wide reappraisal, as provided by Article 2, 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, 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, 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, shall be limited to not more than a seven percent increase in the assessed value of the property from the previous year’s ass

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(a) After each county-wide reappraisal, as provided by Article 2, 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, 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, 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, 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 subdivision 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.