The proposed bill amends Sections 40-9-19, 40-9-19.1, and 40-9-21 of the Code of Alabama 1975 to enhance the homestead exemption laws. It introduces new provisions allowing unremarried widows or widowers of certain individuals to claim the exemption, specifying that it 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 clarifies that homesteads are exempt from all state ad valorem taxes for individuals over 65, those permanently and totally disabled, blind individuals, and unremarried widows or widowers of decedents who were exempt at the time of their death. Additionally, it replaces terms like "person" with "individual" and adjusts exemption limits for different categories, including a new limit of $5,000 for individuals over 65 with an annual adjusted gross income of $12,000 or less.

Furthermore, the bill allows municipalities to grant exemptions from increased ad valorem property taxes for eligible residents and clarifies that existing exemptions under other laws remain unaffected. It modifies criteria for property tax exemptions for individuals who are permanently and totally disabled or over 65 years of age, allowing those not required to file a tax return to submit an affidavit as proof of income. The Department of Revenue is tasked with establishing rules for determining permanent and total disability, and the provisions of this act will take effect on 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