HB226ENGROSSED
Page 0
HB226
4UUZ5II-2
By Representatives Crawford, Shedd, Paramore, Stubbs, Starnes,
Easterbrook, Ingram, Whorton, Hulsey, Hammett, Robertson,
Butler, Harrison, Lomax, Lovvorn, Rehm, Wood (D)
RFD: Ways and Means Education
First Read: 06-Feb-25
1
2
3
4
5
6
7 HB226 Engrossed
Page 1
First Read: 06-Feb-25
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; 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
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 s of a residents of this state shall
be exempt from all state ad valorem taxes if the individual
is,:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 HB226 Engrossed
Page 2
is,:
a. over 65 years of age ,; or who
b.are retired due to permanent and total disability,
regardless of age , or who ;
c.are blind as defined in Section 1-1-3, regardless of
age or whether such personthe individual 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; and
2. If the name of the unremarried widow or widower is
on the deed of the property.
(3) The state Commissioner of Revenue may define and
specify the condition or state of health that makes a personan
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 Forcesarmed 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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 HB226 Engrossed
Page 3
except countywide and school district ad valorem taxes levied
for school purposes, by any county of this state. In no case
shall theThe 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, theThe 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 such the 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 such the 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 such the taxing authority is located acting on behalf of
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84 HB226 Engrossed
Page 4
which such the taxing authority is located acting on behalf of
such the 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 such the action. This subsection
shall in no waynot annul or reduce exemptions provided under
subsections (a), (b), and (d).
(d)(1)For tax years beginning on and after October 1,
1981, forHomesteads, as defined in the Constitution and laws
of Alabama, of residents of this state are exempt from ad
valorem property taxes levied by any county of this state,
including ad valorem taxes levied for school districts, if the
individual is:,
a. over 65 years of age who haveand has an annual
adjusted gross income of less than twelve thousand dollars
($12,000) or less, as reflected on the most recent state
income tax return or some other appropriate evidence ,; or who
b.are retired due to permanent and total disability,
regardless of age ;, or who
c.are blind as defined in Section 1-1-3, regardless of
age or whether such personthe 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
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112 HB226 Engrossed
Page 5
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; and
2. If the name of the unremarried widow or widower is
on the deed of the property.
(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
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 personan
individual "permanently and totally disabled" and may issue
certificates of disability to any person individual that meets
such the specifications. Any person individual who is drawing
any pension or annuity from the armed servicesUnited 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
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140 HB226 Engrossed
Page 6
(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 such the
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 (f) of Amendment No.
373Section 217 toof the Constitution of Alabama of 1901 2022
for public school purposes, on the homesteads of a residents
of suchthe municipality who is:
a. over 65 years of age ;, or who
b.are retired due to permanent and total disability,
regardless of age ;, or who
c.are blind, as defined in Section 1-1-3, regardless of
age or whether such personthe 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; and
2. If the name of the unremarried widow or widower is
on the deed of the property.
(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 such the
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 HB226 Engrossed
Page 7
upon the request of the board of education of such the
municipality by resolution of the governing body of such the
municipality. Any request made by a board of education
regarding an exemption pursuant to this section shall be made
by a resolution adopted by such the board of education.
(b) The provisions of this section shall in no waynot
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.is permanently and totally disabled ; or who
b.is 65 years of age or older havingand has a net
annual taxable income of twelve thousand dollars ($12,000) or
less, as shown on such personindividual'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 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; and
2. If the name of the unremarried widow or widower is
on the deed of the property.
(2)a. In the event that such person and spouse are An
individual that is not required to file a United States income
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196 HB226 Engrossed
Page 8
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 personthe individual and spouse for the
preceding taxable year was twelve thousand dollars ($12,000)
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 seeking an the exemption under paragraph
(a)(1)b.provided herein is claimed.
(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 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 toTo qualify for exemption under this
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224 HB226 Engrossed
Page 9
(5) In order toTo 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
person individual qualifying under this section.
(b) The department Department of Revenue shall by rule
establish the criteria and proof required for an exemption in
this section based upon aanperson 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 servicesUnited 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, 2026.
Section 3. The Department of Revenue may adopt rules to
implement this act.
Section 4. This act shall become effective on January
1, 2026.
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245 HB226 Engrossed
Page 10
1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means
Education
................06-Feb-25
Read for the second time and placed
on the calendar:
1 amendment
................27-Feb-25
Read for the third time and passed
as amended
Yeas 103
Nays 0
Abstains 0
................04-Mar-25
John Treadwell
Clerk
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267