The Legislature on Wednesday gave final approval to a bill that will cap annual property tax assessments, and taxes, at no more than 7% per year.
Under existing law, there is no limit on increases in assessed values of property, which are set by tax assessors annually based on market data and the condition of properties.
“In some areas across Alabama, annual reappraisals have resulted in property taxes increasing by as much as 68% year-to-year, which can be financially crippling to homeowners and business owners alike,” House Bill 73 sponsor Rep. Phillip Pettus, R-Green Hill, told Alabama Daily News on Wednesday. “Capping those increases at 7% allows cities and counties to acknowledge the rising value of property while, at the same time, shielding both families and employers from unfair, unexpected, and unconscionable property tax increases.”
The legislation applies to Class III properties, which include single-family homes and agricultural land and forests, and Class II properties, which include commercial and business properties.
The bill says the cap will sunset in 2027. Sen. David Sessions, R-Grand Bay, who sponsored the bill in the Senate, proposed an amendment ending the cap in five years.
Sen. Bobby Singleton, D-Greensboro, pushed back against the amendment and it was killed.
Singleton said Alabama has lowest property taxes in the nation.
“All the rich folks don’t want to pay taxes,” Singleton said on the Senate floor.
A Public Affairs Research Council of Alabama report last year said Alabama’s per capita property tax collections are the lowest in the nation. That “creates a revenue deficit, leaving state and local governments with less to spend to provide government services such as education, health, and public safety.”
The bill was amended to remove a requirement that the Alabama Department of Revenue do a report about the impact of the cap.
“Passage of this bill offers a commonsense, conservative solution to a serious problem and provides Alabama taxpayers with a much-needed measure of relief,” Pettus said.
The bill goes to the governor for her signature.
Legislature approves veterans’ mental health care plan bill
A bill to create a plan for delivering mental health care services to veterans passed the Alabama House of Representatives unanimously Wednesday morning with no discussion.
Sponsored by Sen. Andrew Jones, R-Centre, and carried by Rep. Chip Brown, R-Hollingers Island, Senate Bill 135 when initially filed was far broader, directing the Alabama Department of Veterans Affairs to establish and operate an entirely new health care system for veterans.
As passed, a plan will be developed on how to provide care for veterans’ behavioral health needs. It creates a 20-member Veterans Mental Health Steering Committee to look at the behavioral needs of veterans, according to the bill’s fiscal note.
The bill does not allocate any money for increased spending, though that could come later.
Before asking for final passage, Brown thanked his colleagues for working diligently on this legislation. House Speaker Nathaniel Ledbetter, R-Rainsville, returned thanks.
“This wasn’t an easy bill and you’ve been working on it from the beginning of session and you hung with it to make sure the veterans in this state got the help they needed for the mental health aspect.”
Alabama lawmakers approve stiffer penalties for falsely reporting crime
MONTGOMERY, Ala. (AP) — Alabama lawmakers voted on Wednesday to stiffen penalties for making a false report to law enforcement, legislation that follows a kidnapping hoax that drew national attention.
An Alabama woman falsely claimed this summer that she was abducted after stopping her car to check on a toddler she saw wandering along a suburban interstate. Her story captivated the nation before police said her story was fabricated.
False reporting to law enforcement authorities is a Class A misdemeanor under Alabama law. The legislation would increase that to a felony if the false report “alleges imminent danger to a person or the public.” The legislation would also make it easier to order restitution for law enforcement costs.
“The goal of this legislation is to create a deterrent for those who blatantly lie in reporting a crime, so that those who do, experience the full force of the law,” Alabama Attorney General Steve Marshall said in a statement.
The Senate voted 32-0 for the bill. It now goes to Gov. Kay Ivey for her signature.
Carlee Russell, who admitted her kidnapping story was a hoax, pleaded guilty in March to misdemeanor charges of false reporting to law enforcement and falsely reporting an incident. She apologized for her actions.