Current through Register Vol. 42, No. 11, August 30, 2024
(1)
PURPOSE - This rule is issued pursuant to authority contained in Alabama Act
2011-544 for the purpose of establishing guidelines and procedures for the
uniform implementation of paragraphs (a) through (d) of the Homeowners and
Storm Victims Protection Act of 2011.
(2) DEFINITIONS - For the purpose of this
rule, the following terms shall have the following meaning:
(a) Single-Family Dwelling - A single unit
structure providing independent residential living facilities for a single
family consisting of one or more persons, including permanent provisions for
living, sleeping, eating, cooking and sanitation.
(b) Fully-Developed Underlying Lot - A lot or
parcel of land owned by a qualifying home builder, whether located in a rural
or urban area or in a recorded and platted subdivision, upon which a completed
or partially completed single-family dwelling rests.
(c) Documentary Evidence - Shall include:
1. A current and valid license issued by the
Alabama Homebuilders Licensure Board. Documentary evidence of the date
construction begins, (building permit, approval for temporary utility pole,
waste water disposal permit issued by the County Health Department)
(d) Effective Date - This rule
shall be applied to qualifying properties beginning with the ad valorem tax
lien date October 1, 2011.
(e) Home
Builder - A person or firm holding a valid and current license issued by the
Alabama Homebuilders Licensure Board or who is otherwise authorized by the
Board to construct single-family homes under the provisions of Sections
34-14A-5 and
34-14A-6,
Code of Ala. 1975. License must be current, valid and
active as of October 1 of each year for which application for reclassification
is applied. Exemptions from the licensing provisions include:
1. General contractors holding a current and
valid license, issued prior to January 1, 1992, under the provisions of
Sections
34-8-1 through
34-8-27,
Code of Ala. 1975 and
2. Owners of property, when authorized by the
Alabama Homebuilders Licensure Board, to act as their own contractor, providing
all material supervision themselves, when constructing single-family residences
on such property for the occupancy or use of such owners and not offered for
sale.
(f) Maximum
Reclassification Period - For single-family dwellings and the fully-developed
underlying lot the maximum reclassification period shall not exceed a period of
24 months from the October 1 lien date following the date the owner home
builder applies for the reclassification and files the required documentary
evidence if application is made prior to the October 1 lien date. If
application is made after the October 1 lien date but on or before December 31,
the 24 month maximum reclassification period shall begin on the October 1 lien
date preceding the application and filing of the required documentary evidence.
Under no circumstance shall the maximum reclassification period span more than
two October 1 lien dates.
(3) TAX SALE PROPERTY - Single family
dwellings and the fully-developed underlying lots which are sold at a tax sale
for delinquent taxes and assessed in the tax sale purchaser's name as of an
October 1 lien date do not qualify for reclassification.
(4) PROCEDURES - Single-family dwellings,
completed or partially completed as of October 1, and the fully-developed
underlying lot owned by a qualifying home builder shall constitute residential
property and may be reclassified from Class II property to Class III property
for property tax assessment purposes based on the property owner filing
documentary evidence with the proper local tax assessing official. This
reclassification shall not exceed the maximum reclassification period.
(a) The reclassification of single-family
dwellings and the fully-developed underlying lot authorized by this Act shall
terminate when one of the following occurs:
1. The reclassification has been in place for
the maximum reclassification period.
2. The owner no longer holds a valid license
or authorization from the Home Builders Licensure Board.
3. The sale, transfer, or any other action or
inaction resulting in the single-family dwelling and the fully-developed
underlying lot no longer being owned by a licensed home builder.
4. The use of the property has converted to a
use that no longer meets the definition of single-family dwelling as defined in
this rule.
(5) APPLICATION PROCESS - The owner of a
qualifying single-family dwelling and the underlying lot must apply for
reclassification with the local assessing official in the county where the
property is located. The owner must file a completed Form ADV-44, including the
proper supporting documentary evidence. Application may be made at any time the
property for which application is being made meets all requirements and
qualifies for reclassification. The reclassification will be applied as
provided in paragraph (f) of this rule.
