AL HB167

Replaces the current 7% cap on annual property tax assessment increases with a cap tied to the Consumer Price Index (CPI) for all urban consumers as published by the U.S. Department of Labor, Bureau of Labor Statistics

Applies to both Class II and Class III properties as defined in Alabama Code Section 40-8-1

Exemptions from the cap remain unchanged: newly assessed property, additions/improvements/new construction, property classification changes, ownership changes (except family transfers and foreclosure redemptions), and property in tax increment districts

Effective October 1, 2026, with retroactive application to October 1, 2024

Assessment limitations remain in effect through fiscal year beginning October 1, 2027