The Alabama Legislature on Wednesday passed a bill capping property tax increases in the state, providing relief to homeowners and businesses facing large assessment hikes by capping annual increases in property tax assessments through reassessments at 7%.

HB 73 was approved by both houses of Congress, and the bill's sponsors, State Rep. Philip Pettus (R-Killeen) and State Sen. David Sessions (R-Grand Bay), received thanks from state leaders.

“Thanks to the passage of the tax cap bill, unexpected double-digit property tax increases are no longer a threat to homeowners and business owners,” Lt. Governor Will Ainsworth said after the bill passed. “Taxes from reassessments may not increase by more than 7 percent. I thank Senator Sessions and Representative Pettus for introducing this bill.”

With the passage of the tax cap bill, unexpected double-digit property tax increases are no longer a threat to homeowners and business owners. Taxes from reassessments may not increase by more than 7%. I thank Senator Sessions and Representative Pettus for introducing this bill. pic.twitter.com/L7aFsp28kO

— Will Ainsworth (@willainsworthAL) May 8, 2024

“This is a cap, not a tax cut,” Sen. Sessions told lawmakers on Wednesday. “We've had really high inflation over the last few years, we've had housing deficits, we've had massive property tax increases, and this is just a steady cap of 7 percent a year to raise taxes.”

Many lawmakers, including House Speaker Nathaniel Leadbetter, said they have seen similar increases in their own districts and that this measure would address them.

“Last year, property taxes in my district increased by 40 percent due to reassessment, a statewide trend that is taking homeownership away from Alabama families. I am proud that the Legislature came together to limit the annual increase to 7 percent,” Leadbetter said after the two houses reached an agreement.

The bill will be sent to Gov. Kay Ivey for consideration and signature. Wednesday marks the 29th day of the 2024 legislative session. There is one day left.

Grayson Everett is the state and politics editor for Yellow Hammer News. You can follow him on Twitter. Grayson