| 5 | 5 | | By Representatives Crawford, Shedd, Paramore, Stubbs, Starnes, |
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| 6 | 6 | | Easterbrook, Ingram, Whorton, Hulsey, Hammett, Robertson, |
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| 7 | 7 | | Butler, Harrison, Lomax, Lovvorn, Rehm, Wood (D) |
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| 8 | 8 | | RFD: Ways and Means Education |
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| 9 | 9 | | First Read: 06-Feb-25 |
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| 10 | 10 | | 1 |
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| 12 | 12 | | 3 |
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| 13 | 13 | | 4 |
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| 14 | 14 | | 5 |
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| 15 | 15 | | 6 |
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| 19 | 24 | | A BILL |
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| 20 | 25 | | TO BE ENTITLED |
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| 21 | 26 | | AN ACT |
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| 22 | 27 | | Relating to ad valorem tax; to amend Sections 40-9-19, |
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| 23 | 28 | | 40-9-19.1, and 40-9-21, Code of Alabama 1975, regarding |
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| 24 | 29 | | homestead exemptions; to allow the unremarried widow or |
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| 25 | 30 | | widower of certain individuals to claim the exemption; and to |
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| 26 | 31 | | make nonsubstantive, technical revisions to update the |
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| 27 | 32 | | existing code language to current style. |
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| 28 | 33 | | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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| 29 | 34 | | Section 1. Sections 40-9-19, 40-9-19.1, and 40-9-21, |
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| 30 | 35 | | Code of Alabama 1975, are amended to read as follows: |
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| 31 | 36 | | "§40-9-19 |
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| 32 | 37 | | (a)(1) Homesteads, as defined by the Constitution and |
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| 33 | 38 | | laws of Alabama, are exempt from all state ad valorem taxes. |
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| 34 | 39 | | In no case shall the The exemption shall not apply to more than |
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| 35 | 40 | | one person individual or head of the family, nor shall the |
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| 71 | 76 | | is,: |
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| 72 | 77 | | a. over 65 years of age ,; or who |
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| 73 | 78 | | b.are retired due to permanent and total disability, |
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| 74 | 79 | | regardless of age , or who ; |
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| 75 | 80 | | c.are blind as defined in Section 1-1-3, regardless of |
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| 76 | 81 | | age or whether such personthe individual is retired; or |
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| 77 | 82 | | d. the unremarried widow or widower of a decedent |
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| 78 | 83 | | exempt pursuant to this subsection at his or her death , shall |
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| 85 | 85 | | (3) The state Commissioner of Revenue may define and |
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| 86 | 86 | | specify the condition or state of health that makes a personan |
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| 87 | 87 | | individual "permanently and totally disabled" and may issue |
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| 88 | 88 | | certificates of disability to the person individual as he or |
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| 89 | 89 | | she may find meets such specifications. Any person individual |
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| 90 | 90 | | who is drawing any pension or annuity from the United States |
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| 91 | 91 | | Armed Forcesarmed services or a company or governmental agency |
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| 92 | 92 | | as being permanently and totally disabled shall automatically |
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| 93 | 93 | | be granted a certificate of permanent and total disability by |
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| 94 | 94 | | the state Commissioner of Revenue. |
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| 95 | 95 | | (b) For tax years beginning on and after October 1, |
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| 96 | 96 | | 1981, for residents of this state not over 65 years of age, |
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| 97 | 97 | | homesteads, as defined by the Constitution and laws of |
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| 98 | 98 | | Alabama, are exempt from all ad valorem property taxes levied, |
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| 129 | 129 | | except countywide and school district ad valorem taxes levied |
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| 130 | 130 | | for school purposes, by any county of this state. In no case |
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| 131 | 131 | | shall theThe exemption shall not apply to more than one person |
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| 132 | 132 | | individual or head of the family, nor shall the exemption |
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| 133 | 133 | | exceed two thousand dollars ($2,000) in assessed value or 160 |
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| 134 | 134 | | acres in area for any resident of this state who is not over |
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| 135 | 135 | | 65 years of age except as provided in subsection (c). |
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| 136 | 136 | | (c) For tax years beginning on and after October 1, |
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| 137 | 137 | | 1981, theThe governing body of any county, municipality, or |
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| 138 | 138 | | other local taxing authority may at any time grant by |
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| 139 | 139 | | resolution or ordinance an exemption from any levy of ad |
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| 140 | 140 | | valorem property taxes levied by such the county, |
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| 141 | 141 | | municipality, or other local taxing authority on homesteads, |
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| 142 | 142 | | as defined by the Constitution and laws of Alabama, of |
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| 143 | 143 | | residents of this state not over 65 years of age. In no case |
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| 144 | 144 | | shall such the exemption allowed in this section apply to more |
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| 145 | 145 | | than one person individual or head of the family, nor shall |
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| 146 | 146 | | the exemption, when added to any other homestead exemption |
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| 147 | 147 | | applicable to the same ad valorem tax levy, exceed four |
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| 148 | 148 | | thousand dollars ( $4,000) in assessed value or 160 acres in |
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| 149 | 149 | | area. Any homestead exemption granted pursuant to this |
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| 150 | 150 | | subsection (c) may be adjusted, rescinded, or reinstated at |
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| 151 | 151 | | any time by resolution or ordinance of the governing body of |
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| 152 | 152 | | the county, municipality, or other local taxing authority |
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| 153 | 153 | | granting such exemption. Any action authorized by this |
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| 154 | 154 | | subsection to be taken by a taxing authority, or the governing |
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| 155 | 155 | | body thereof, other than in the case of a municipality, shall |
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| 156 | 156 | | be taken by resolution of the governing body of the county in |
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| 187 | 187 | | which such the taxing authority is located acting on behalf of |
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| 188 | 188 | | such the taxing authority; provided however, any action |
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| 189 | 189 | | authorized by this subsection to be taken by a taxing |
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| 190 | 190 | | authority, or the governing body thereof, which action shall |
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| 191 | 191 | | affect countywide or district ad valorem taxes levied solely |
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| 192 | 192 | | for the support of county or city school districts, shall be |
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| 193 | 193 | | taken by resolutions of the governing bodies and boards of the |
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| 194 | 194 | | school systems that are recipients of the proceeds of the ad |
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| 195 | 195 | | valorem tax so affected by such the action. This subsection |
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| 196 | 196 | | shall in no waynot annul or reduce exemptions provided under |
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| 197 | 197 | | subsections (a), (b), and (d). |
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| 198 | 198 | | (d)(1)For tax years beginning on and after October 1, |
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| 199 | 199 | | 1981, forHomesteads, as defined in the Constitution and laws |
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| 200 | 200 | | of Alabama, of residents of this state are exempt from ad |
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| 201 | 201 | | valorem property taxes levied by any county of this state, |
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| 202 | 202 | | including ad valorem taxes levied for school districts, if the |
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| 203 | 203 | | individual is:, |
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| 204 | 204 | | a. over 65 years of age who haveand has an annual |
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| 205 | 205 | | adjusted gross income of less than twelve thousand dollars |
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| 206 | 206 | | ($12,000) or less, as reflected on the most recent state |
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| 207 | 207 | | income tax return or some other appropriate evidence ,; or who |
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| 208 | 208 | | b.are retired due to permanent and total disability, |
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| 209 | 209 | | regardless of age ;, or who |
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| 210 | 210 | | c.are blind as defined in Section 1-1-3, regardless of |
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| 211 | 211 | | age or whether such personthe individual is retired; or |
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| 212 | 212 | | d. the unremarried widow or widower of a decedent |
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| 213 | 213 | | exempt pursuant to this subsection at his or her death , |
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| 214 | 214 | | homesteads, as defined in the Constitution and laws of |
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| 252 | 248 | | (2) In no case shall the exemption exceed five thousand |
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| 253 | 249 | | dollars ($5,000) in assessed value or 160 acres in area. With |
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| 254 | 250 | | respect to homesteads situated in more than one county, the |
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| 255 | 251 | | exemption shall be prorated between the counties in which the |
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| 256 | 252 | | homestead is situated in the proportion that the area of the |
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| 257 | 253 | | homestead in each county bears to the total area of the |
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| 258 | 254 | | homestead claimed for exemption. |
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| 259 | 255 | | (3) The Department of Revenue, by rule, may define and |
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| 260 | 256 | | specify the condition or state of health that makes a personan |
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| 261 | 257 | | individual "permanently and totally disabled" and may issue |
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| 262 | 258 | | certificates of disability to any person individual that meets |
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| 263 | 259 | | such the specifications. Any person individual who is drawing |
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| 264 | 260 | | any pension or annuity from the armed servicesUnited States |
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| 265 | 261 | | Armed Forces, a private company, or any governmental agency |
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| 266 | 262 | | because he or she is permanently and totally disabled shall |
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| 267 | 263 | | automatically be granted a certificate of permanent and total |
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| 268 | 264 | | disability by the Department of Revenue. |
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| 269 | 265 | | (e) The grant of any homestead exemption provided under |
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| 270 | 266 | | this section shall not be allowed if such grant shall prevent |
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| 271 | 267 | | the payment of any bonded indebtedness secured by any tax to |
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| 272 | 268 | | which the homestead exemption would apply. |
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| 273 | 269 | | (f) Any homestead exemption under this section or |
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| 306 | 302 | | disaster such as a tornado or hurricane." |
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| 307 | 303 | | "§40-9-19.1 |
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| 308 | 304 | | (a)(1) The governing body of any municipality may, upon |
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| 309 | 305 | | the request of the board of education of such the |
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| 310 | 306 | | municipality, may grant, by resolution, an exemption in whole |
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| 311 | 307 | | or in part from the increased portion of any ad valorem |
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| 312 | 308 | | property tax which has been increased pursuant to the |
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| 313 | 309 | | procedures specified in paragraph (f) of Amendment No. |
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| 314 | 310 | | 373Section 217 toof the Constitution of Alabama of 1901 2022 |
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| 315 | 311 | | for public school purposes, on the homesteads of a residents |
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| 316 | 312 | | of suchthe municipality who is: |
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| 317 | 313 | | a. over 65 years of age ;, or who |
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| 318 | 314 | | b.are retired due to permanent and total disability, |
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| 319 | 315 | | regardless of age ;, or who |
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| 320 | 316 | | c.are blind, as defined in Section 1-1-3, regardless of |
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| 321 | 317 | | age or whether such personthe individual is retired.; or |
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| 322 | 318 | | d. the unremarried widow or widower of a decedent |
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| 361 | | - | upon the request of the board of education of such the |
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| 362 | | - | municipality by resolution of the governing body of such the |
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| 363 | | - | municipality. Any request made by a board of education |
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| 364 | | - | regarding an exemption pursuant to this section shall be made |
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| 365 | | - | by a resolution adopted by such the board of education. |
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| 366 | | - | (b) The provisions of this section shall in no waynot |
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| 367 | | - | annul or reduce exemptions provided under any other provisions |
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| 368 | | - | of the Constitution and laws of Alabama." |
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| 369 | 360 | | "§40-9-21 |
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| 370 | 361 | | (a)(1) In addition to the persons individuals and |
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| 371 | 362 | | property exempt from ad valorem taxation as prescribed in |
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| 372 | 363 | | Section 40-9-1, the following shall also be exempt from ad |
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| 373 | 364 | | valorem taxation: The principal residence and 160 acres |
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| 374 | 365 | | adjacent thereto of any person individual who is: |
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| 375 | 366 | | a.is permanently and totally disabled ; or who |
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| 376 | 367 | | b.is 65 years of age or older havingand has a net |
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| 377 | 368 | | annual taxable income of twelve thousand dollars ($12,000) or |
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| 378 | 369 | | less, as shown on such personindividual's and spouse's latest |
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| 379 | 370 | | United States income tax return or some other appropriate |
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| 380 | 371 | | evidence acceptable to the department ; or |
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| 381 | 372 | | c. the unremarried widow or widower of a decedent |
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| 376 | + | tax return, then may file an affidavit indicating that the net |
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| 377 | + | taxable income of such personthe individual and spouse for the |
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| 378 | + | preceding taxable year was twelve thousand dollars ($12,000) |
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| 379 | + | or less. This affidavit shall be sufficient proof for |
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| 380 | + | paragraph (a)(1)b . |
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| 381 | + | b. An individual shall furnish proof Proof of age shall |
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| 382 | + | be furnished when seeking an the exemption under paragraph |
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| 383 | + | (a)(1)b.provided herein is claimed. |
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| 384 | + | (3) On and after May 22, 2013, if If a permanently and |
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| 385 | + | totally disabled person individual does not qualify for the |
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| 386 | + | exemption under this section, and has not previously submitted |
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| 387 | + | written certification of such permanent and total disability |
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| 388 | + | by any two physicians licensed to practice in this state, he |
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| 419 | | - | individual that is not required to file a United States income |
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| 420 | | - | tax return, then may file an affidavit indicating that the net |
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| 421 | | - | taxable income of such personthe individual and spouse for the |
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| 422 | | - | preceding taxable year was twelve thousand dollars ($12,000) |
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| 423 | | - | or less. This affidavit shall be sufficient proof for |
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| 424 | | - | paragraph (a)(1)b . |
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| 425 | | - | b. An individual shall furnish proof Proof of age shall |
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| 426 | | - | be furnished when seeking an the exemption under paragraph |
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| 427 | | - | (a)(1)b.provided herein is claimed. |
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| 428 | | - | (3) On and after May 22, 2013, if If a permanently and |
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| 429 | | - | totally disabled person individual does not qualify for the |
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| 430 | | - | exemption under this section, and has not previously submitted |
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| 431 | | - | written certification of such permanent and total disability |
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| 432 | 418 | | by any two physicians licensed to practice in this state, he |
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| 433 | 419 | | or she may submit as proof of permanent and total disability |
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| 434 | 420 | | affidavits from two physicians licensed to practice in this |
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| 435 | 421 | | state, provided that at least one of these physicians is |
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| 436 | 422 | | actively providing treatment directly related to the permanent |
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| 437 | 423 | | and total disability of the person individual seeking the |
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| 438 | 424 | | exemption; provided, however, this requirement shall not apply |
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| 439 | 425 | | to any person individual receiving the exemption on May 22, |
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| 440 | 426 | | 2013. |
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| 441 | 427 | | (4) As provided under this section, any person |
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| 442 | 428 | | individual who is drawing any pension or annuity from the |
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| 443 | 429 | | armed services or a company or governmental agency because he |
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| 444 | 430 | | or she is permanently and totally disabled shall automatically |
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| 445 | 431 | | be granted a certificate of permanent and total disability by |
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| 446 | 432 | | the department. |
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| 447 | 433 | | (5) In order toTo qualify for exemption under this |
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| 434 | + | section, the property must be a single-family home owned and |
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| 435 | + | occupied during the tax year as the principal residence of the |
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| 436 | + | person individual qualifying under this section. |
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| 437 | + | (b) The department Department of Revenue shall by rule |
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| 438 | + | establish the criteria and proof required for an exemption in |
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| 439 | + | this section based upon aanperson individual being |
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| 440 | + | "permanently and totally disabled" and shall issue |
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| 441 | + | certificates of disability to any person individual that meets |
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| 442 | + | such criteria and provides the required proof. The rule shall |
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| 443 | + | provide that any person individual who is drawing any pension |
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| 444 | + | or annuity from the armed servicesUnited States Armed Forces , |
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| 445 | + | a private company, or any governmental agency because he or |
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| 446 | + | she is permanently and totally disabled shall automatically be |
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| 477 | | - | (5) In order toTo qualify for exemption under this |
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| 478 | | - | section, the property must be a single-family home owned and |
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| 479 | | - | occupied during the tax year as the principal residence of the |
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| 480 | | - | person individual qualifying under this section. |
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| 481 | | - | (b) The department Department of Revenue shall by rule |
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| 482 | | - | establish the criteria and proof required for an exemption in |
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| 483 | | - | this section based upon aanperson individual being |
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| 484 | | - | "permanently and totally disabled" and shall issue |
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| 485 | | - | certificates of disability to any person individual that meets |
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| 486 | | - | such criteria and provides the required proof. The rule shall |
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| 487 | | - | provide that any person individual who is drawing any pension |
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| 488 | | - | or annuity from the armed servicesUnited States Armed Forces , |
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| 489 | | - | a private company, or any governmental agency because he or |
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