HB 491 — Relating to taxation; to amend Sections 40-2-18, 40-3-21, 40-3-25, and 40-7-25, Code of Alabama 1975, to provide a date certain by which valuation notices must be mailed by county assessing officials; to provide notice requirements regarding certain decisions of the Board of Equalization; to extend the time to pay taxes and file an appeal regarding certain actions of the Board of Equalization; and to make nonsubstantive, technical revisions to update the existing code language to current style.

HB491 INTRODUCEDENROLLED AL8ISQ-1AL8ISQ-2 By Representative Faulkner RFD:

17-May-23 2023 Regular Session Page 0 AL8ISQ-1HB491 05/17/2023Enrolled CMHEnrolled, (L)bmAn 2023-2159Act, 23 4Relating SYNOPSIS:to taxation;

Under existing law, in the event the value of a taxpayer's personal or real property is increased by the county tax assessing official over the assessed value as fixed for the next preceding year, the taxpayer must be provided a notice showing the revised value.

This bill would provide that the revised valuation notice must be mailed to the taxpayer by no later than July 1.

Under existing law, when an appeal is taken, the taxpayer must pay the taxes due as fixed for assessment for the preceding tax year before the taxes become delinquent.

This bill would establish an extension of time to pay taxes and file appeals to circuit court when the Board of Equalization has not reached a decision on the taxpayer's appeal on or before November 30.

Also under existing law, when the work of hearing objections against values fixed on taxable property has been completed by the board of equalization, the tax assessor must enter upon the tax return lists the corrected values, if any changes have been made.

This bill would also require the secretary of Page 1 HB491 INTRODUCED the board to immediately send notice by mail to each taxpayer notifying him or her of the board's decision concerning the hearing objections against values fixed on taxable property.

This bill would also make nonsubstantive, technical revisions to update the existing code language to current style.

A BILL TO BE ENTITLED AN ACT Relating to taxation;

"§40-2-18 (a) Whenever the work of revaluing and equalizing any class or classes of property has been completed by order of Page 2 HB491 INTRODUCED the Department of Revenue, as provided herein, and the revised valuation has been entered on the tax return list, the county board of equalization shall certify over their signatures to the correctness thereof and shall deliver the tax return list showing the assessment and revaluation to the assessing official of the county as their report, and the assessing official shall hold them in his or her office subject to public inspection.

The assessing official shall then give notice by publication once a week for three consecutive weeks in a newspaper published in the county, if any are published Page 1 HB491 Enrolled in the county and, if no newspaper is published in the county, by posting notices in at least three public places in the county that the county board of equalization has returned its report and that the same is open to public inspection and that the board will convene at the courthouse in the county on a day to be named and fixed in the notice to correct any errors in the valuations.

(b)(1) In the event the property of any taxpayer is increased by the county board of equalization when revaluing and equalizing assessments as provided in this section over the assessed value as originally fixed by the board, the taxpayer shall be furnished by mail or in person, with a statement showing separately the revised value of his or her personal property and his or her real property no later than July 1, unless otherwise approved by the Department of Revenue, and also that the taxpayer may file in writing with the secretary of the county board of equalization, within 30 calendar days from the date of the notice, objections, if any Page 3 HB491 INTRODUCED are made, to the revaluation made as herein provided, and that the county board of equalization will sit on a day to be named and fixed in the notice, when the complaining taxpayer, his or her agent or attorney may appear and produce evidence in support of any objection as filed.

(2) Notwithstanding the foregoing, failure to give or receive the notice shall not invalidate any assessment and the taxpayer shall have the right at any time before the taxes become delinquent to appear before the county board of equalization and have the assessment of his or her property 95Page 2 HB491 Enrolled reopened, if satisfactory proof is made that the taxpayer or his or her agent did not receive notice of the increase.

Furthermore, it (2) It shall be the duty of the county board of equalization to examine the complainant under oath and to examine any other witnesses under oath, as to the fair and reasonable market value of the property of the owner, and, if it finds from the evidence the revaluation placed by it on the Page 4 HB491 INTRODUCED property was not the amount specified by law on the fair and reasonable market value of the property, then it shall correct the valuations and enter the corrected value upon the tax return on which the property is listed for taxation, so that the return will show the amount specified by law on the fair and reasonable market value, and the corrected amount so entered by the board shall constitute the taxable value of the property.

(3) If the board shall find finds from all the evidence that the revaluations placed by it on the property were the Page 3 HB491 Enrolled amount specified by law on the fair and reasonable market value, then the valuation thus made shall remain and stand as the assessable value for taxation of the property.

(d)(1) In the event the revaluation and equalization provided for herein is made by the Department of Revenue, the Department of Revenue shall certify to the correctness of the 95 revised tax assessments, and the newspaper publication shall be made and notices given as when the board of equalization revalues and equalizes property, that the Department of Revenue will sit on the date fixed in the notices to hear evidence in support of objections, if any, filed in writing with the assessing official to revaluations and equalizations made by it.

At the sitting, the (2) The complaining property owner may appear in person Page 5 HB491 INTRODUCED or by agent or attorney and produce evidence in support of objections filed by him or her in writing to any revaluation of his or her property.

and if it If the department finds from the evidence that the readjusted value placed by it on the property was not the amount specified by law on the fair and reasonable market value of the property, then it shall correct the valuations and enter the corrected value upon the tax Page 4 HB491 Enrolled return on which the property is listed, so that the return will show the amount specified by law on the fair and reasonable market value, and the corrected amount so entered by the Department of Revenue shall constitute the taxable value of the property.

(e) From the revaluation and equalization made as herein provided, the taxpayer may appeal to the circuit court in the manner as provided for appeal from the county board of equalization." "§40-3-21 When the work of hearing objections against values fixed on taxable property shall have has been completed by the Page 6 HB491 INTRODUCED board of equalization, the tax assessor secretary of the board shall immediately send notice by mail to each taxpayer with a notification of the board's decision.

The secretary of the board shall enter upon the tax return lists the corrected values, if any changes have been made therein, which changed or altered value shall be the taxable value of the property or properties, unless an appeal is taken as herein provided or unless otherwise ordered by the Department of Revenue." "§40-3-25 (a) All appeals from the rulings of the board of Page 5 HB491 Enrolled equalization fixing the value of property shall be taken within 30 calendar days after the final decision of said board fixing the assessed valuation as provided in this chapter of the date of the notice required under Section 40-3-21.

In cases where the board of equalization has not issued its final ruling fixing the assessed value of the property on or before November 30, the taxpayer shall be granted 30 calendar days from the final decision to either pay the taxes Page 7 HB491 INTRODUCED due without penalty or to file an appeal with the circuit court and pay the taxes due as fixed for assessment for the preceding tax year without penalty.

Upon failure to pay the taxes due as fixed for assessment for the preceding tax year, the court upon motion ex mero motu must dismiss the appeal, unless at the time of taking the appeal the taxpayer has executed a supersedeas bond with sufficient sureties to be approved by the clerk of the circuit court in double the amount of taxes, payable to the State of Alabama, conditioned to pay all taxes, interest, and costs due the state, county, Page 6 HB491 Enrolled or any agency or subdivision thereof.

Page 8 HB491 INTRODUCED Upon such the filing of the appeal to the circuit court or to the Supreme Court, the court shall ascertain and determine by its judgment the amount of tax which was invalid or which was excessive both as to the amount paid to the state, counties, county boards of education, municipalities, or other governmental agencies receiving any part of such the taxes, and thereupon, upon.

Upon presentation of a certified copy of the judgment to the Comptroller, it shall be the duty of the Comptroller to shall draw his a warrant on the State Treasurer in favor of such the taxpayer for such an the amount as Page 7 HB491 Enrolled determined by the judgment of the court shall ascertain and declare has to have been erroneously paid to the state together with interest from the date of payment, and such a warrant of the Comptroller shall be paid out of any funds in the State Treasury as a current obligation of the year in which said the refund is ordered.

(e) Upon presentation of a certified copy of such the judgment to the county commission, or upon presentation of a certified copy of such the judgment to a county board of education or to the city council or other governing body of any municipality, or upon presentation of a certified copy to the governing body of any other agency of the state which may have received any part of said the tax erroneously paid as determined by the judgment, it shall be the duty of the county commission or the county board of education or of the city council or other governmental body of a municipality or of the governmental body of any other agency receiving any part of such the taxes to draw its warrants on the treasurer of such Page 9 HB491 INTRODUCED the county, school board, municipality, or other agency in favor of the taxpayer for such the amount of said the tax as may have been erroneously paid to such the county, school board, municipality, or other agency, together with interest from the date of payment, and such the amount shall constitute a preferred claim of the current year in which said the refund is ordered, and the respective treasurers are hereby required to shall refund such the amounts received by said the county, school board, municipality, or other agency, with interest as herein provided.

Page 8 HB491 Enrolled (f) In the event the judgment of the court shall fix an assessment greater than that upon which the taxes have been paid on the assessment appealed from, the court shall fix and determine the amount of such excess, and the taxpayer and the sureties on his the taxpayer's appeal bond shall be adjudged to pay taxes due by reason of such the increased assessment with interest from the date of judgment, and the lien and priorities of the state and counties or other agencies shall apply to such the additional amount as in other cases.

The court, in fixing the assessment, shall order the assessing authorities to apportion the same and the collecting authorities to collect taxes thereon for the several taxing subdivisions in the manner provided by law." "§40-7-25 (a)(1) Except as provided in subdivision (2) or as otherwise provided by law, the assessing official shall, from information entered on the tax return list and from all other information known to him or her, or which he or she may Page 10 HB491 INTRODUCED procure, shall proceed to ascertain what, in his or her best judgment, is a fair and reasonable market value of each item of property returned by or listed to any taxpayer;

(2) The assessed value of any real estate or improvements as fixed for taxation for the year next preceding the then current tax year shall be prima facie the basis of the value of the property for assessment for the current tax year, and the property shall not be assessed for taxation at a less valuation unless, upon evidence submitted to the county Page 9 HB491 Enrolled board of equalization, as provided for herein, it is found that the assessed valuation of the property reviewed should be reduced.

Page 11 HB491 INTRODUCED (c) In the event the value of real or personal property of any taxpayer is increased by the county board of equalization, herein created, over the assessed value thereof for the next preceding year, the taxpayer shall be furnished by mail or in person, by the secretary of the county board of equalization, with a statement showing separately the value of his or her personal property and his or her real property, and improvements thereon, no later than July 1, unless otherwise provided by the Department of Revenue.

The statement shall be signed by the chair of the county board of equalization and Page 10 HB491 Enrolled the.

(e) The expense of postage incurred in carrying out the provisions of this section shall be paid in equal proportions by the county and state, upon a certified statement thereof by the secretary of the county board of equalization, filed with the court of county commissioners, or the board or court of like jurisdiction and with the Department of Finance." Page 12 HB491 INTRODUCED Section 2.

Page 1311 HB491 Enrolled ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 24-May-23.

John Treadwell Clerk Senate 01-Jun-23 Passed Page 12