The HBAA-backed HB 179 (Williams, Birmingham) passed in the House on Wednesday on a 95-0 vote.  Representative Jack Williams of Birmingham, the bill's sponsor, added an amendment to the bill that included all lots in the definition of residential property.  This means that all lots would be taxed at 10% valuation and would end the inventory tax that currently applies. 

Once passed in the House, the bill was assigned to the Senate Commerce, Transportation, and Utilities Committee (CT&U).  Senator Gerald Allen (Tuscaloosa), the CT&U chairman, immediately assigned it to Thursday's calendar where it was given a favorable report. 

Although the bill has been given a favorable report, members of the committee and Senate leadership did ask that the sponsor, HBAA, and the county commissioners attempt to find a way to limit the amount of time lots would be allowed the lower tax rate.  The HBAA will be working with all parties to find a way to address the Senators' concerns so that the bill can be assigned to the Senate calendar at the earliest opportunity. 

The HBAA expresses its most sincere thanks to Rep. Jack Williams for his leadership on this important issue.  A former tax collector in Jefferson County, Rep. Williams fully understands the issues affecting the home buyers and the home builders.  The HBAA would also like to thank Senator Gerald Allen for moving quickly to get the bill heard before his committee.  Senator Allen and Rep. Williams are great friends to the home building industry and have shown their support for the HBAA through their actions this week.

bill into the House version. The bill will likely go to a conference committee to work out the differences between the two versions.

The HBAA and other business groups will analyze the bill over the coming days to determine what changes were adopted and how they will affect the homebuilding industry.

The HBAA will work with the House and Senate conferees to ensure that the negotiated bill takes into consideration our industry's concerns and lessens the impact on the membership.

With the recent storms that ripped their way across Alabama, Senator Gerald Allen of Tuscaloosa joined with Senator Brooks to expand the scope of the bill to include the entire state.  Under the bill, all home owners would receive a tax deduction of up to $1,500 or 25% of the cost of upgrades to their home that would make it more resistant to wind damage.  The bill further allows a 50% or $3,000 deduction for the same features for those located in a state declared or federally declared disaster area.

Both Senators worked hard to ensure that the bill received a favorable report from the Senate Finance & Taxation Education (F&TE) committee.  In an effort to speed the bill along, the Senators are working to get Senator Brooks' bill placed on a Senate calendar and then substitute the expanded language.

The HBAA thanks both Senators for working with the HBAA to modify the language to expand the bill's coverage.  The HBAA will be working closely with Senator Brooks and Senator Allen to get the bill on the Senate calendar as soon as possible.

Representative Mike Hill (Columbiana) introduced a House companion bill on Wednesday.  Representatives Mac McCutcheon (Capshaw), Johnny Mack Morrow (Red Bay) and Jack Williams (Birmingham) signed as co-sponsors.