HB179 Summary

• Expands the definition of "residential property" under Alabama's ad valorem tax code to include single-family dwellings and lots under construction for up to 24 months from when construction begins.

• Allows home builders with valid licenses from the Home Builders Licensure Board to classify fully-developed lots as Class III residential property (taxed at 10% of assessed value) rather than Class II (20%) for up to 24 months.

• Requires property owners to file documentary evidence with tax assessing officials to prove construction start dates, with the Department of Revenue to promulgate rules defining acceptable documentation.

• Protects destroyed or damaged single-family dwellings by maintaining their residential property classification for up to 24 months during rebuilding, with possible 24-month extension if necessary.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.