The proposed bill amends Sections 40-9-19, 40-9-19.1, and 40-9-21 of the Code of Alabama 1975 to modernize the homestead exemption laws, particularly for unremarried widows or widowers of individuals who were exempt at the time of their death. New legal language specifies that the exemption shall not apply to more than one individual or head of the family, with a limit set at $4,000 in assessed value for residents under 65 years of age. The bill expands eligibility to include individuals over 65, those permanently and totally disabled, and blind individuals, while also establishing a new exemption limit of $5,000 for certain individuals. The bill clarifies that the exemption for unremarried widows or widowers applies only to the homestead claimed by the decedent at the time of death and requires their name to be on the property deed.

Additionally, the bill allows municipalities to grant exemptions from increased property taxes for qualifying residents and clarifies that any exemptions can be adjusted or rescinded by the board of education. It modifies Section 40-9-21 to ensure that individuals who are permanently and totally disabled, those aged 65 or older with a net annual taxable income of $12,000 or less, and unremarried widows or widowers are exempt from ad valorem taxation on their principal residence and up to 160 acres of adjacent property. The Department of Revenue is tasked with establishing criteria for determining permanent and total disability, and the provisions of this act will take effect on January 1, 2026, with the Department authorized to adopt rules for implementation.

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