Relating to Property Tax; amending the cap on the assessed value of real property

HB 167 would change Alabama's property tax rules by replacing a fixed 7% annual cap on assessed value increases with a cap tied to the annual inflation rate (measured by the Consumer Price Index). This directly affects property owners, particularly those with Class II and III properties, as their annual tax assessments would now rise or fall based on inflation rather than a fixed percentage. The bill applies retroactively from October 1, 2024, and continues through 2027, with exceptions for new construction, property transfers between family members, and certain ownership changes. The change aims to align property tax increases more closely with actual cost-of-living changes.