Tax Exemptions 

 

 

The Alabama Legislature passed Act 2012-313 during the 2012 regular session that will change the qualifications for receiving a total exemption from ad valorem taxes for individuals who are either disabled or age sixty-five (65) and older.  To qualify for this exemption, the taxpayer must be either:

 

1. Age 65 and older and have combined net taxable income of the taxpayer and his or her spouse on their latest United States Tax Return of $12,000 or less.

2. Retired because of permanent and total disability and the combined net taxable income of the taxpayer and his or her spouse on their latest United States Tax Return is $12,000 or less. 

 

The effective date of Act 2012-313 is August 1, 2012.  The new requirements must be met for any total disability granted as of October 1, 2012 for ad valorem taxes to be collected beginning October 1, 2013.  Any taxpayer in Alabama who is a first time claimant of this exemption must meet these new qualifications.  Additionally, any taxpayer in Alabama who has been previously granted this exemption must recertify that they meet these new qualifications to continue receiving this exemption.

 

What is homestead exemption and how can I apply?

 

Homestead Exemption is granted to all Class III single family owner occupied properties. This exemption allows the property owner to deduct up to $4,000.00 in state tax and $2,000.00 in county tax from the total assessed value of the property.

How do I apply for this exemption?

  • You must own and occupy the property as your primary residential address.
  • You must visit one of our office locations to sign an assessment sheet.

Under Alabama State Tax Law, only one Homestead Exemption is granted regardless of how much property is owned in the state. This exemption does not require annual renewal however; the exemption is non-transferrable. New owner application is required. Depending on the date of application, your exemption may take effect during the next tax billing cycle.


Can I claim the homestead exemption on a manufactured mobile home?

If you own a mobile home, you may be eligible to claim the Homestead Exemption. In order to claim, you must own the mobile home and the property where it is located.

How do I apply?

  • Own and occupy the mobile home as your primary residence.
  • Own the property were the mobile home is located.
  • You must visit one of our office locations with deed to the property and title to the mobile home in your name
  • Sign an assessment sheet.

Depending on the date of application, your exemption may take effect during the next tax billing cycle.

 

What exemptions are available for the disabled?

All persons with a medical certification of "disabled" are allowed a total exemption.

How do I apply for this exemption?

  • There is no income or age requirement for Disability Exemption
  • Own and occupy the property as your primary residential address on October 1st
  • If you are totally and permanently disabled proof of disability required (Social Security Disability Letter, must be 100%; Veterans Administration disability letter, must be 100%; Two letters proving total disability from two separate physicians must be 100%) There is no income limit for disability.
  • If you are blind, you must furnish documentation from a licensed Ophthalmologist or Optometrist, letter must state a vision of 20/200 or less to be considered legally blind. There is no income limit for blind exemption.

Homeowners must sign assessment and furnish proof of eligibility before exemption is granted. Depending on the date of application, your exemption may take effect during the next tax billing cycle.

Are exemptions available for deaf or insane persons?

If you are totally deaf or legally insane, you may be able to apply for the Deaf and Insane Exemption under Alabama Law. This exemption is used in conjunction with other homestead exemptions allowing $300.00 per effected persons to be subtracted from the total assessed value of property.

How do I apply?

  • No income or age requirement
  • Own and occupy the property as your primary residential address on October 1st.

Depending on the date of application, your exemption may take effect during the next tax billing cycle. 

I am over 65, am I eligible for a tax exemption?

All property owners 65 or older are eligible to claim Homestead Exemption 5. With this exemption, the property owner is exempt from all State property tax. County, School, and Municipal taxes still apply. The property owner will receive a discounted tax bill each year.

How do I apply for this exemption?

  • You must be 65 years old before October 1st of the year you are applying for
  • Own and occupy the property as your primary residential address.
  • You must visit one of our office locations to present proof of age and sign an assessment sheet.

*Depending on your date of birth, your exemption may take effect during the next tax billing cycle.

Are exemptions available for low income seniors?

All low income property owners 65 or older may be eligible to claim Homestead Exemption 2. Property owners granted Homestead 2 are exempt from the state portion of property tax and up to $5000.00 of property tax collected from the county. A portion of County, School, and Municipal taxes still apply.

The property owner will receive a discounted tax bill each year along with an exemption. This exemption will require annual renewal on or before December 31 each year and is non-transferrable.

How do I apply for this exemption?

  • You must be 65 years old before October 1st of the year you are applying for
  • Own and occupy the property as your primary residential address.
  • Your adjusted gross income (as indicated on Alabama State Tax return)must not exceed $12,000.00
  • You must visit one of our office locations to present proof of age and sign an assessment sheet.

All low income property owners 65 or older may be eligible to claim Homestead Exemption 3 under Alabama Act 91. Property owners granted Homestead 3 are exempt from the state portion of property tax and up to $5000.00 of property tax collected from the county. A portion of County, School, and Municipal taxes still apply.

How do I apply for this exemption?

  • You must be 65 years old before October 1st of the year you are applying for
  • Own and occupy the property as your primary residential address.
  • Your taxable income(as indicated on Federal Tax return) must not exceed $7,500
  • You must visit one of our office locations to present proof of age and sign an assessment sheet.

Depending on the date of application, your exemption may take effect during the next tax billing cycle. 

What exemptions must be reclaimed yearly and why?

Exemptions based on income and complete exemptions (ACT 48) must be reclaimed on a yearly basis. Each October property owners with this type exemption will receive a reclaim form in lieu of a Courtesy Tax Notice. This renewal form must be signed, witnessed, and returned to our office NO LATER THAN December 31 of the same year.

If you are required to submit proof of income, a Federal Income Tax or Alabama State Income Tax Form (your reclaim form will specify which one) must accompany the form.  Proof of disability is not required each year.

I did not receive a reclaim for this year.

Exemption Reclaim Forms are mailed each October 1st to all property owners who are eligible to renew their exemption. All reclaim forms must be returned to the Revenue Commissioner's Office by the December 31st deadline.

If you have not received a reclaim form by mail, it is your responsibility to contact our office and have a duplicate form sent to you. You may also visit any of our office locations and renew your exemption in person.

Under Alabama State Tax Law, NO EXCEPTIONS can be made for the renewal of exemption claims not made or renewed BEFORE the December 31 deadline.

My exemption has been cancelled. Why?

Under the Alabama Code Title 40-7-10 all exemptions subject to annual renewal must be reclaimed no later than December 31 of each year. This law applies to Homestead Exemptions granted on the basis of income or disability.

Any exemption not renewed by the December 31 deadline by mail or in person will be cancelled. Upon cancellation of exemption, new application will be necessary.

Exemption renewal is the responsibility of the property owner. If you do not receive an exemption renewal form by mail, you will need to contact one of our office locations to have a duplicate form sent to you or, you my reclaim in person.

No exemptions will be granted after the December 31 deadline.

I have been eligible for an exemption before I applied. How can I get a refund on those years?

While there are various Homestead Exemptions available, property owners must apply in person before an exemption can be granted.

If your status as an eligible grantee exists prior to application, Alabama State Tax Law does not provide for retroactive exemption status or refund on unclaimed exemptions.

Exemption status begins after application is made and exemption granted. Depending on the date of application, your exemption may take effect during the next tax billing cycle.

Are Property Tax Exemptions transferable?

Property Tax Exemptions are NOT TRANSFERABLE.

All exemptions are based on the ownership of property therefore, the exemption is granted to the owner of the property NOT the property itself. When there is a change in status (owner has sold, transferred property, lives elsewhere, is in a assisted care facility, lives with family, or is deceased) the property tax exemption will be cancelled.

Is there an exemption for farm or timberland?

When farmland, pasture land, or timberland is used for producing agricultural, livestock, or wood products for sale to the general public, the owner may apply for the current use exemption.

This exemption allows that the property be assessed below market value when used for these purposes. The property owner must make a formal application to the Revenue Commissioner's Office to claim the exemption. Current Use application must be filed on October 1 and no later than January 1 for the preceding tax year. All current use applications are subject to be verified by the County Agent or Alabama State Forestry Commission.

After current use has been granted, the owner does not have to re-apply for the exemption. If the property changes hands, the new owners will be required to reapply.