AL HB475

Replaces the existing 7 percent cap on assessed value increases for Class II and Class III real properties with a cap tied to the Consumer Price Index (CPI) for all urban consumers as published by the U.S. Department of Labor for the immediately preceding year.

Exempts from the assessment cap increases: previously unassessed property, additions or improvements including new construction, property classification changes, certain ownership transfers (family/spouse transfers for no or nominal consideration and post-foreclosure redemptions), and property in tax increment districts.

Makes the limitations effective retroactively from October 1, 2024, and continuing through the fiscal year beginning October 1, 2027.

The bill becomes effective October 1, 2025, with retroactive application to October 1, 2024.