Alabama § 40-7-2.2 - Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions.
Full text of Alabama Code of Alabama § 40-7-2.2 — Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions., with citation guidance and answers to common questions.
§ 40-7-2.2. Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions.
(a) After each county-wide reappraisal, as provided by Article 2, and the resulting assessed value of property for ad valorem tax purposes, the tax assessor shall annually compare the assessed value of each real property reappraised or reassessed to the prior year’s assessed value. If the assessed value of the property increased, the tax assessor shall adjust the assessed value of the property pursuant to this section.
(b)(1) Class III properties, as defined in Section 40-8-1, shall be limited to not more than a seven percent increase in the assessed value of the property from the previous year’s assessed value.
(2) Class II properties, as defined in Section 40-8-1, shall be limited to not more than a seven percent increase in the assessed value of the property from the previous year’s assessed value.
(c) The limitations provided for in subsection (b) shall not apply to:
(1) Real property that has never been assessed.
(2) Additions or improvements to real property, including new construction. This subdivision shall not include repairs to or ordinary maintenance of an existing structure or the grounds of the property.
(3) Change to the classification of the property.
(4) Change in ownership of the property, except for any of the following:
a. Transfers between spouse or family members for no or nominal consideration, including upon death of owner.
b. Transfers due to redemption after foreclosure of a mortgage, tax sale, or tax lien.
(5) Property located in a tax increment district created pursuant to Chapter 99 of Title 11.
(d) The limitations provided for in subsection (b) shall be effective October 1, 2024, and shall continue through the fiscal year beginning October 1, 2027.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-7-2.2
What does Code of Alabama § 40-7-2.2 cover?
Section 40-7-2.2 ("Limitation on Assessed Value of Certain Real Property for Ad Valorem Tax Purposes; Exceptions.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-7-2.2?
A common citation format is "Code of Alabama § 40-7-2.2" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-7-2.2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.