Lid bill exemption passes Senate

An exemption to the property tax lid bill for the city of Homewood has passed through both houses of the state legislature.

This morning, the Alabama Senate passed a bill exempting Homewood from the statewide lid bill, which caps ad valorem property tax rates at certain millage rates (or rates per $1,000 of property value). Vestavia Hills, Mountain Brook and Huntsville currently have exemptions to the lid bill.

Homewood has been at its max rate of 75 mills - divided between state, county, city and school system – for several years. About 45 percent of Homewood's municipal property tax revenue is given to Homewood City Schools each year.

Though the bill has passed the House and Senate, Homewood does not yet have the exemption. It must be voted on by Jefferson County residents as a constitutional amendment in the November general election.

If Homewood's exemption is approved, any future changes to property tax rates in the city must be approved by a citywide vote first. City Council President Bruce Limbaugh and Ward 4 Representative Alex Wyatt said the city has no plans to increase property tax at this time, but the city and school system chose to pursue an exemption because major construction projects and school system growth make it possible that more funding for schools will be needed in the future.