Budget & Taxes

in committee · Alabama · House Jan 13, 2026

HB 85: Ad valorem taxes, reappraisal of Class II and Class III property every three years

HB 85 requires Alabama counties to reappraise Class II (commercial/industrial) and Class III (agricultural) property every three years instead of the current ad hoc system. This directly affects property owners in these categories by changing how their tax assessments are calculated. If a reappraisal shows higher property value, the increased tax amount is phased in equally over the next three years rather than applying fully immediately. The bill amends Alabama law to implement this schedule and phase-in process, effective May 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesPhases in property tax increases over three years for commercial/agricultural properties, reducing immediate tax burden per bill's phased-in implementation.85% confidence

Sub-Topics Property Tax

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passed · Alabama · House Jan 20, 2026

HB 87: Taxation; to exempt sales of deer feed from sales and use taxes

HB 87 exempts sales of deer feed (specifically shelled corn sold for wild deer consumption) from Alabama's state sales and use taxes. It also allows counties and municipalities to choose whether to exempt deer feed sales from local taxes. The bill directly affects businesses selling deer feed and local tax authorities, changing how these sales are taxed at both state and local levels. The exemption takes effect on September 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts deer feed from state sales tax, providing tax relief and directly altering tax policy per bill's explicit language.95% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Alabama · House Mar 17, 2026

HB 77: Taxation and Revenue; disabled veterans' homestead taxes inclusion in debt-to-income ratio under certain circumstances prohibited

HB 77 helps disabled veterans with a 100% VA disability rating by streamlining their access to property tax exemptions when applying for home mortgages. The bill requires tax officials to issue a "tentative certificate" of disability exemption upon receiving basic documentation (like VA disability proof and purchase agreements) within 20 days. It also prohibits lenders from including homestead property taxes in a veteran’s debt-to-income ratio calculation when processing their mortgage application. This directly affects veterans seeking home loans who qualify for Alabama’s homestead tax exemption. The law takes effect October 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief for disabled veterans by excluding homestead taxes from mortgage debt calculations, easing financial burden for qualifying individuals.95% confidence ✓ HousingSupports HousingProhibits lenders from counting homestead taxes in debt-to-income ratio for disabled veterans, easing mortgage qualification and homeownership access for a vulnerable group.92% confidence ✓ VeteransSupports VeteransStreamlines property tax exemptions for disabled veterans, preventing lenders from including taxes in debt-to-income calculations.95% confidence

Sub-Topics Property Tax Tax Incentives Mortgages Property Taxes Veteran Benefits Veteran Healthcare Veteran Housing

in committee · Alabama · Senate Jan 13, 2026

SB 18: Taxation; state privilege tax on revenues of pari-mutuel wagering activities, levied

SB 18 would impose a new 4% state tax on net gambling revenues from historical horse racing pari-mutuel wagering operations. It applies specifically to licensed businesses running historical horse racing betting, replacing their existing privilege taxes with this single rate. The tax base excludes free bets, promotional credits, and prize payouts, while explicitly preserving current tax structures for live horse racing, greyhound racing, and simulcast operations. The bill does not authorize new gambling activities or alter existing legal gambling frameworks.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new 4% tax on gambling revenues, increasing state budget revenue without defunding programs or targeting lower-income groups.95% confidence

Sub-Topics Business Taxes Sales Tax

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passed · Alabama · House Feb 25, 2026

HB 4: Taxation; establishes Alabama Broadband Investment Maximization Act; exempts ADECA project funded or administered purchases from sales and use tax

HB 4 establishes the Alabama Broadband Investment Maximization Act, exempting purchases of broadband equipment and supplies for projects funded or administered by the Alabama Department of Economic and Community Affairs (ADECA) from state sales and use taxes. This directly affects ADECA-funded broadband infrastructure projects by reducing their costs. The exemption covers equipment like cables, antennas, and routers used for broadband services or internet access, but excludes personal devices such as smartphones and consumer routers. The tax exemption applies from September 1, 2026, through August 31, 2029, and does not extend to local county or municipal taxes unless specifically approved.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts ADECA broadband equipment purchases from sales tax, reducing project costs and supporting infrastructure funding under fiscal responsibility.95% confidence ✓ TechnologySupports TechnologyExempts broadband equipment from taxes, reducing costs for infrastructure projects and expanding internet access per bill's explicit purpose.90% confidence

Sub-Topics Sales Tax Tax Incentives Broadband Access

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signed · Alabama · House Feb 3, 2026

HB 65: Franklin County; senior property tax exemption, authorized; constitutional amendment

HB 65 proposes a constitutional amendment to allow Franklin County residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, seniors must own the home as their principal residence for at least five years and meet income requirements (not detailed in the bill text). The exemption freezes the property’s assessed value from the year before claiming it, but does not affect homestead exemptions or millage rate changes. The amendment requires voter approval and would take effect for tax years beginning October 1, 2027, with claims due by December 31, 2027. This is a proposed change to the state constitution, not yet law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors, reducing their tax burden per constitutional amendment proposal.95% confidence

Sub-Topics Property Tax Tax Incentives

in committee · Alabama · Senate Jan 13, 2026

SB 13: Taxation; Energy use in poultry houses, exempt from utility gross receipts and utility service use tax

SB 13 would exempt Alabama poultry producers from paying state utility taxes on natural gas, propane, or electricity used specifically for heating poultry houses. The bill amends existing tax code sections to explicitly add poultry house heating to the list of exempt energy uses, removing a current tax burden on this operational cost. This change directly affects poultry farms by reducing their energy expenses for maintaining proper temperatures in housing facilities. The exemption would apply to energy purchased and consumed directly for heating purposes, effective September 1, 2026, pending legislative approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts poultry producers from utility taxes on heating, reducing tax burden and providing targeted tax relief per bill's explicit amendment to tax code.95% confidence

Sub-Topics Sales Tax

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signed · Alabama · House Feb 3, 2026

HB 64: Colbert County; senior property tax exemption, authorized; constitutional amendment

HB 64 proposes a constitutional amendment for Colbert County to allow residents aged 65+ to claim a property tax exemption on their primary residence. To qualify, a homeowner must own a single-family home as their principal residence for at least five years before claiming the exemption, and the exemption freezes the property's assessed value from the prior year. The exemption requires written application to the county revenue commissioner between October 1 and December 31, 2027, for the 2027 tax year, and remains valid as long as the homeowner continues living there. This would directly affect Colbert County seniors meeting these specific residency and ownership criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors, reducing tax burden - direct tax relief for lower-income homeowners as per bill's exemption terms90% confidence

Sub-Topics Property Tax Tax Incentives

in committee · Alabama · House Mar 19, 2026

HB 15: Taxation, sales tax exemptions, sales and use tax exemption with local option provided for purchases of optical aids, including eyeglasses and contact lenses.

HB 15 would exempt eyeglasses and contact lenses from Alabama's sales and use tax. Currently, these items are taxed under state law, but the bill would remove that tax obligation. This change would directly affect consumers purchasing optical aids and retailers selling them, as they would no longer pay or collect tax on these items. The bill amends Alabama Code Section 40-23-1 to add eyeglasses and contact lenses to the list of tax-exempt products.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential optical aids from sales tax, providing direct tax relief to consumers purchasing necessities.90% confidence ✓ HealthcareSupports HealthcareExempts vision care devices from sales tax, reducing costs and improving access to essential medical aids for patients.85% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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signed · Alabama · House Feb 24, 2026

HB 27: Relating to Catastrophe Savings Accounts; expands allowable expenses

HB 27 expands Alabama's catastrophe savings accounts to cover additional expenses beyond insurance deductibles, including storm-resistant home upgrades (like reroofing) and FORTIFIED endorsement costs for hurricane-prone properties. It sets contribution limits based on a homeowner's deductible amount - capping total contributions at $15,000 or less for most residents, and up to $250,000 for self-insured homeowners. The bill maintains tax benefits, allowing deductions for contributions and exempting account interest from state income tax, while requiring distributions to cover only eligible disaster-related costs. This directly affects Alabama homeowners with residential properties in hurricane-risk areas who use these accounts to prepare for or recover from severe storms.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deductions for contributions to catastrophe savings accounts, offering tax relief to homeowners for eligible expenses.95% confidence

Sub-Topics Income Tax