This bill increases the market value threshold for state ad valorem tax exemptions on tangible personal property for small businesses from $100,000 to $120,000. It specifically applies to businesses with fewer than 50 employees, allowing them to keep more of their business equipment and assets tax-free. The legislation also permits local governments to create similar exemptions for their jurisdictions and includes minor technical updates to the state tax code. This change directly affects small business owners in Alabama who own tangible personal property within the new value limit.
This bill establishes a new 8% state privilege tax on historical horse racing activities in Alabama, which would replace all existing local taxes on these operations. The tax applies to net gambling revenue from pari-mutuel wagers on computerized historical horse racing machines, excluding promotional credits and winnings from the taxable amount. By repealing specific local tax laws in Class 1 municipalities and certain counties, the bill ensures the state tax is the only tax levied on historical horse racing, while leaving taxes on live greyhound and horse racing unchanged. The legislation would take effect on October 1, 2026, and does not authorize any new gambling activities beyond what is currently permitted by law.
This bill proposes a constitutional amendment to allow Monroe County residents aged 65 and older to claim a senior property tax exemption on their primary single-family home. The exemption would freeze the property's assessed value at the level from the year before the exemption begins, protecting owners from future property value increases while still allowing taxes to rise if the home is expanded or improved. To qualify, homeowners must have lived in the property as their main residence for at least five years before applying, and the exemption can be claimed starting October 1, 2027. The measure requires voter approval through an election before it becomes law, and it would not affect existing homestead exemptions or changes to local tax rates.
HB 390 expands Alabama's existing employer tax credit program to include expenses for adult day care services. Currently, the credit covers child care costs for employees' children under age 5; this bill adds eligible expenses for adult day care services for employees' dependent adults aged 18 or older who require care due to age, disability, or health conditions. Employers would receive a tax credit equal to 75% of qualifying adult day care expenses (100% for small businesses with fewer than 25 employees), up to $600,000 annually per employer. The change directly affects employers providing care for adult dependents, making these costs tax-deductible under the same framework as current child care expenses.
HB 395 clarifies how the Alabama Alcoholic Beverage Control Board calculates mark-up fees on wholesale liquor sales. It specifies that the "cost of merchandise" used to determine the fee (capped at 16.99%) includes only the amount the Board pays for liquor cases, excluding other costs. This directly affects liquor wholesalers who pay this fee on case lot purchases. The bill makes minor technical updates to the code language but does not change the existing fee cap or other provisions. The bill is pending in the House Economic Development and Tourism Committee and would take effect October 1, 2026.
HB 508 proposes repealing a specific constitutional requirement in Alabama that currently mandates voter approval for municipalities outside Etowah County to annex territory within Etowah County before January 1, 1986. If passed, this change would remove the need for a local election to approve such annexations, directly affecting municipalities seeking to expand into Etowah County territory. The bill targets Section 28-11.20 of Alabama’s Constitution, which created this voter approval process for pre-1986 annexations. This is a substantive policy change to streamline annexation procedures for affected municipalities.
SB 330 authorizes Alabama law enforcement officers to swear to and issue citations for misdemeanors, traffic violations, and municipal offenses remotely using digital, video, or telephone methods, instead of requiring in-person appearances before judges or magistrates. It allows judges/magistrates to issue warrants for these offenses remotely and permits officers to administer oaths to other officers for citation purposes via approved electronic means. The bill directly affects law enforcement officers, judicial personnel, and individuals cited for non-felony violations. Key provisions eliminate the physical presence requirement for swearing citations and issuing warrants, using "reliable electronic means" as defined in the bill. It takes effect October 1, 2026.
SB 332 would add Parkinson's disease to Alabama's list of occupational diseases eligible for disability and death benefits for firefighters. It requires firefighters to demonstrate exposure to a known toxin linked to Parkinson's during their service to qualify for benefits, creating a presumption that the disease is work-related in such cases. This change directly affects Alabama firefighters who develop Parkinson's disease while serving, allowing them to seek compensation similar to other covered occupational illnesses. The bill updates existing statutes to include this provision while removing redundant language.
SB 75 modifies Alabama's public works law to allow government agencies to bypass standard competitive bidding requirements when purchasing materials or equipment through approved cooperative purchasing agreements. This change directly affects state, county, and municipal agencies that typically need to bid contracts exceeding $100,000 for public works projects. The bill expands an existing exception (previously limited to HVAC systems) to cover all materials and equipment bought via cooperative agreements that meet state regulatory standards. This streamlines procurement by letting agencies use pre-negotiated group purchasing deals without public bidding, while maintaining oversight through the Department of Finance's centralized website for notice requirements.
HB 216 would require Alabama public schools to display the Ten Commandments alongside a context statement in history classrooms (grades 5-12) and common areas of schools serving grades 5 and above, but only if donated displays or funds are available. The bill mandates the State Department of Education to identify free resources to help schools comply with this requirement. It does not create a state-funded mandate and is currently pending committee review in the Alabama House of Representatives as of January 2026. The legislation cites historical references to religious elements in founding documents as justification, but the policy focuses solely on display requirements subject to donations.
This bill allows Alabama counties and municipalities to unilaterally withdraw from multijurisdiction authorities (entities serving multiple local governments) if those authorities have no outstanding debt. After withdrawal, local governments can establish successor entities to handle similar functions, control the use of funds previously distributed from their territory, and adjust local tax rates by up to two percentage points. The bill requires multijurisdiction authorities to return a proportional share of their available funds to withdrawing entities based on prior contributions. These changes aim to increase local control over shared fiscal responsibilities and service delivery.
SB 212 proposes a constitutional amendment for Fayette County, Alabama, to allow residents aged 65 or older who own and live in their primary single-family home for at least five years to claim a property tax exemption. The exemption would freeze the property’s assessed value from the year before claiming it, reducing annual tax bills. To qualify, seniors must submit a written application to Fayette County’s Revenue Commissioner between October 1 and December 31, 2027, and maintain the home as their primary residence. The amendment requires voter approval to take effect and does not affect millage rates or other exemptions.
