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HB397 INTRODUCED
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HB397
11R14LL-1
By Representatives Crawford, Whitt, Underwood, Sorrells,
Marques, Brown, Smith, Rehm, Whorton, Robertson, Ingram
RFD: Ways and Means General Fund
First Read: 05-Feb-26
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11R14LL-1 09/29/2025 MR (F)MR 2025-2748
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First Read: 05-Feb-26
SYNOPSIS:
Under existing law, the homesteads of certain
individuals whose annual income is below a fixed amount
are exempt from ad valorem tax.
This bill would increase this annual income cap.
This bill would also extend this exemption to
the unremarried widow or widower of those individuals.
A BILL
TO BE ENTITLED
AN ACT
Relating to ad valorem tax; to amend Sections 40-9-19,
40-9-19.1, and 40-9-21, Code of Alabama 1975, regarding
homestead exemptions; to allow the unremarried widow or
widower of certain individuals to claim the exemption; to
increase the adjusted income cap; and to make nonsubstantive,
technical revisions to update the existing code language to
current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 40-9-19, 40-9-19.1, and 40-9-21,
Code of Alabama 1975, are amended to read as follows:
"§40-9-19
(a)(1) Homesteads, as defined by the Constitution and
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(a)(1) Homesteads, as defined by the Constitution and
laws of Alabama, are exempt from all state ad valorem taxes.
In no case shall the The exemption shall not apply to more than
one person individual or head of the family, nor shall the
exemption exceed four thousand dollars ( $4,000 ) in assessed
value or 160 acres in area for any resident of this state who
is not over 65 years of age.
(2) The homestead homesteads of a resident residents of
this state , shall be exempt from all state ad valorem taxes if
the individual is:
a. Over over 65 years of age ;
b. Retired , or who are retired due to permanent and
total disability, regardless of age ;
c. Blind , or who are blind as defined in Section 1-1-3,
regardless of age or whether the individual such person is
retired ,; or
d. The unremarried widow or widower of a decedent
exempt pursuant to this subsection at his or her death shall
be exempt from all state ad valorem taxes . This paragraph
shall only apply:
1. To the homestead claimed by the decedent at the time
of his or her death;
2. If the name of the unremarried widow or widower is
on the deed of the property; and
3. If the annual adjusted gross income of the
unremarried widow or widower does not exceed one hundred fifty
thousand dollars ($150,000).
(3) The state Commissioner of Revenue may define and
specify the condition or state of health that makes a person
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HB397 INTRODUCED
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specify the condition or state of health that makes a person
an individual "permanently and totally disabled" and may issue
certificates of disability to the person individual as he or
she may find meets such specifications. Any person individual
who is drawing any pension or annuity from the United States
Armed Forces armed services or a company or governmental agency
as being permanently and totally disabled shall automatically
be granted a certificate of permanent and total disability by
the state Commissioner of Revenue.
(b) For tax years beginning on and after October 1,
1981, for residents of this state not over 65 years of age,
homesteads, as defined by the Constitution and laws of
Alabama, are exempt from all ad valorem property taxes levied,
except countywide and school district ad valorem taxes levied
for school purposes, by any county of this state. In no case
shall the The exemption shall not apply to more than one
person individual or head of the family, nor shall the
exemption exceed two thousand dollars ($2,000 ) in assessed
value or 160 acres in area for any resident of this state who
is not over 65 years of age except as provided in subsection
(c).
(c) For tax years beginning on and after October 1,
1981, the The governing body of any county, municipality, or
other local taxing authority may at any time grant by
resolution or ordinance an exemption from any levy of ad
valorem property taxes levied by suchthe county, municipality,
or other local taxing authority on homesteads, as defined by
the Constitution and laws of Alabama, of residents of this
state not over 65 years of age. In no case shall suchthe
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state not over 65 years of age. In no case shall suchthe
exemption allowed in this section apply to more than one
person individual or head of the family, nor shall the
exemption, when added to any other homestead exemption
applicable to the same ad valorem tax levy, exceed four
thousand dollars ( $4,000 ) in assessed value or 160 acres in
area. Any homestead exemption granted pursuant to this
subsection (c) may be adjusted, rescinded, or reinstated at
any time by resolution or ordinance of the governing body of
the county, municipality, or other local taxing authority
granting such exemption. Any action authorized by this
subsection to be taken by a taxing authority, or the governing
body thereof, other than in the case of a municipality, shall
be taken by resolution of the governing body of the county in
which suchthe taxing authority is located acting on behalf of
suchthe taxing authority; provided , however, any action
authorized by this subsection to be taken by a taxing
authority, or the governing body thereof, which action shall
affect countywide or district ad valorem taxes levied solely
for the support of county or city school districts, shall be
taken by resolutions of the governing bodies and boards of the
school systems that are recipients of the proceeds of the ad
valorem tax so affected by suchthe action. This subsection
shall in no way not annul or reduce exemptions provided under
subsections (a), (b), and (d).
(d)(1) For tax years beginning on and after October 1,
1981, for Homesteads, as defined in the Constitution and laws
of Alabama, of residents of this state are exempt from ad
valorem prooperty taxes levied by any county of this state,
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valorem prooperty taxes levied by any county of this state,
including ad valorem taxes levied for school districts , if the
individual is:
a. overOver 65 years of age who have and has an annual
adjusted gross income of less than $12,000 sixteen thousand
dollars ($16,000) or less, as reflected on the most recent
state income tax return or some other appropriate evidence ,;
b. or who are retired Retired due to permanent and
total disability, regardless of age ,;
c. or who are blind Blind as defined in Section 1-1-3,
regardless of age or whether such person the individual is
retired ,; or
d. The unremarried widow or widower of a decedent
exempt pursuant to this subsection at his or her death
homesteads, as defined in the Constitution and laws of
Alabama, are exempt from ad valorem property taxes levied by
any county of this state, including such taxes levied for
school districts . This paragraph shall only apply:
1. To the homestead claimed by the decedent at the time
of his or her death;
2. If the name of the unremarried widow or widower is
on the deed of the property; and
3. If the annual adjusted gross income of the
unremarried widow or widower does not exceed one hundred fifty
thousand dollars ($150,000).
(2) In no case shall the exemption exceed five thousand
dollars ( $5,000 ) in assessed value or 160 acres in area. With
respect to homesteads situated in more than one county, the
exemption shall be prorated between the counties in which the
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exemption shall be prorated between the counties in which the
homestead is situated in the proportion that the area of the
homestead in each county bears to the total area of the
homestead claimed for exemption.
(3) The Department of Revenue, by rule, may define and
specify the condition or state of health that makes a person an
individual "permanently and totally disabled" and may issue
certificates of disability to any person individual that meets
suchthe specifications. Any person individual who is drawing
any pension or annuity from the armed services United States
Armed Forces , a private company, or any governmental agency
because he or she is permanently and totally disabled shall
automatically be granted a certificate of permanent and total
disability by the Department of Revenue.
(e) The grant of any homestead exemption provided under
this section shall not be allowed if such grant shall prevent
the payment of any bonded indebtedness secured by any tax to
which the homestead exemption would apply.
(f) Any homestead exemption under this section or
Section 40-9-21 shall not be affected during any period the
homestead is being repaired after being damaged by a natural
disaster such as a tornado or hurricane."
"§40-9-19.1
(a)(1) The governing body of any municipality may, upon
the request of the board of education of suchthe municipality,
may grant, by resolution, an exemption in whole or in part
from the increased portion of any ad valorem property tax
which has been increased pursuant to the procedures specified
in paragraph subdivision (f) of Amendment No. 373 Section 217
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in paragraph subdivision (f) of Amendment No. 373 Section 217
toof the Constitution of Alabama of 19012022 for public school
purposes, on the homesteads homestead of residents a resident of
suchthe municipality who is:
a. overOver 65 years of age ;,
b. or who are retired Retired due to permanent and
total disability, regardless of age ;,
c. or who are blind Blind, as defined in Section 1-1-3,
regardless of age or whether such person the individual is
retired .; or
d. The unremarried widow or widower of a decedent
exempt pursuant to this section at his or her death. This
paragraph shall only apply:
1. To the homestead claimed by the decedent at the time
of his or her death;
2. If the name of the unremarried widow or widower is
on the deed of the property; and
3. If the annual adjusted income of the unremarried
widow or widower does not exceed one hundred fifty thousand
dollars ($150,000).
(2) Any homestead exemption granted pursuant to this
section may be adjusted, rescinded , or reinstated at any time
upon the request of the board of education of suchthe
municipality by resolution of the governing body of suchthe
municipality. Any request made by a board of education
regarding an exemption pursuant to this section shall be made
by a resolution adopted by suchthe board of education.
(b) The provisions of this section shall in no way not
annul or reduce exemptions provided under any other provisions
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annul or reduce exemptions provided under any other provisions
of the Constitution and laws of Alabama."
"§40-9-21
(a)(1) In addition to the persons individuals and
property exempt from ad valorem taxation as prescribed in
Section 40-9-1, the following shall also be exempt from ad
valorem taxation: The principal residence and 160 acres
adjacent thereto of any person individual who is :
a. permanently Permanently and totally disabled ;
b. or who is Over 65 years of age or older having and
has a net annual taxable income of twelve thousand dollars
($12,000) sixteen thousand dollars ($16,000) or less, as shown
on such person's the individual's and spouse's latest United
States income tax return or some other appropriate evidence
acceptable to the department .; or
c. The unremarried widow or widower of the decedent
exempt pursuant to this section at his or her death. This
paragraph shall only apply:
1. To the homestead claimed by the decedent at the time
of his or her death;
2. If the name of the unremarried widow or widower is
on the deed of the property; and
3. If the annual adjusted gross income of the
unremarried widow or widower does not exceed one hundred fifty
thousand dollars ($150,000).
(2)a. In the event that such person and spouse are An
individual that is not required to file a United States income
tax return , then may file an affidavit indicating that the net
taxable income of such person the individual and spouse for the
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taxable income of such person the individual and spouse for the
preceding taxable year was twelve sixteen thousand dollars
($12,000) ($16,000) or less . This affidavit shall be sufficient
proof for paragraph (a)(1)b .
b. An individual shall furnish proof Proof of age shall
be furnished when theseeking an exemption under paragraph
provided herein is claimed (a)(1)b .
(3) On and after May 22, 2013, if If a permanently and
totally disabled person individual does not qualify for the
exemption under this section, and has not previously submitted
written certification of such permanent and total disability
by any two physicians licensed to practice in this state, he
or she may submit as proof of permanent and total disability
affidavits from two physicians licensed to practice in this
state, provided that at least one of these physicians is
actively providing treatment directly related to the permanent
and total disability of the person individual seeking the
exemption; provided, however, this requirement shall not apply
to any person individual receiving the exemption on May 22,
2013.
(4) As provided under this section, any
person individual who is drawing any pension or annuity from
the armed services United States Armed Forces or a company or
governmental agency because he or she is permanently and
totally disabled shall automatically be granted a certificate
of permanent and total disability by the department.
(5) In order to To qualify for exemption under this
section, the property must be a single-family home owned and
occupied during the tax year as the principal residence of the
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occupied during the tax year as the principal residence of the
person individual qualifying under this section.
(b) The department Department of Revenue, shall by rule ,
shall establish the criteria and proof required for an
exemption in this section based upon a person an individual
being "permanently and totally disabled" and shall issue
certificates of disability to any person individual that meets
such criteria and provides the required proof. The rule shall
provide that any person individual who is drawing any pension
or annuity from the armed services United States Armed Forces ,
a private company, or any governmental agency because he or
she is permanently and totally disabled shall automatically be
granted a certificate of permanent and total disability by the
department."
Section 2. The provisions of this act apply to tax
years beginning on or after January 1, 2027.
Section 3. The Department of Revenue may adopt rules to
implement this act.
Section 4. This act shall become effective on June 1,
2026.
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