Monday, January 9, 2023

New exemption for state portion of ad valorem tax on business personal property

 

Effective as of October 1, 2023, Act 2022-53 – the Small Business Relief and Revitalization Act of 2022 - sponsored by Rep. Danny Garrett (R – Trussville), among other things, exempts up to $40,000 of business personal property from the state-levied ad valorem tax. 

The new law also grants municipalities and counties the option to adopt the same exemption by resolution or ordinance, although few, if any, are expected to do so.

This change effectively exempts 75% of Alabama businesses from payment of the state portion of this tax.

For the detailed legislation, click here.


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