The bill amends Sections 40-9-19, 40-9-19.1, and 40-9-21 of the Code of Alabama 1975 to enhance the provisions regarding homestead exemptions for ad valorem taxes. A significant addition is the provision that allows the unremarried widow or widower of a decedent, who was exempt from these taxes at the time of death, to claim the exemption, provided their name is on the property deed and the homestead was claimed by the decedent. The bill also sets the exemption limit for individuals over 65 years of age or those permanently and totally disabled at $5,000 in assessed value or 160 acres, while the exemption for residents under 65 years of age is established at $4,000 in assessed value.

Additionally, the bill makes technical revisions to existing language, such as replacing "person" with "individual" and updating the income threshold for exemptions. It clarifies that the state Commissioner of Revenue has the authority to define "permanently and totally disabled" and issue certificates of disability. The bill also allows municipalities to grant exemptions from increased property taxes for eligible residents and specifies that any exemptions can be adjusted or rescinded by the board of education. These changes are set to take effect for tax years beginning on or after January 1, 2026.

Statutes affected:
Introduced: 40-9-19, 40-9-19, 40-9-21
Engrossed: 40-9-19, 40-9-19, 40-9-21