Alabama Constitution Section 216 Limitation on property tax rates of municipal corporations
Alabama Constitution – Section 216
Limitation on Property Tax Rates of Municipal Corporations
Section 216 of the Alabama Constitution sets a limit on the amount of property tax that municipal corporations (such as cities or towns) can impose. Here's a simplified explanation of what it states:
General Limit: No municipal corporation in Alabama may levy a property tax that exceeds ½ of 1% (i.e., 5 mills or $5.00 per $1,000 of assessed value) in any one year, unless a higher rate is approved by a vote of the qualified electors of that municipality.
Exceptions via Election: If the residents of a city or town vote in favor of a higher property tax rate in a legally conducted election, then the municipality can exceed this limit.
Purpose-Based Use: Often, any excess tax rate approved by voters is designated for specific public purposes such as education, infrastructure, or public safety.
Key Takeaways:
The standard municipal property tax limit is 0.5% annually.
Higher rates are only allowed if approved by local voters.
This provision is intended to prevent excessive local taxation without public consent.
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