(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 exemption apply to more than one person or head of the family, nor shall the exemption exceed $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 homesteads of residents of this state, over 65 years of age, or who are retired due to permanent and total disability, regardless of age, or who are blind as defined in Section 1-1-3, regardless of age or whether such person is retired, shall be exempt from all state ad valorem taxes.
(3) The state Commissioner of Revenue may define and specify the condition or state of health that makes a person "permanently and totally disabled" and may issue certificates of disability to the person as he or she may find meets such specifications. Any person who is drawing any pension or annuity from the armed 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 for school purposes, by any county of this state. In no case shall the exemption apply to more than one person or head of the family, nor shall the exemption exceed $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, the 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 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 exemption allowed in this section apply to more than one person 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 $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 taxing authority is located acting on behalf of such 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 action. This subsection shall in no way annul or reduce exemptions provided under subsections (a), (b), and (d).
(d) For tax years beginning on and after October 1, 1981, for residents of this state, over 65 years of age who have an annual adjusted gross income of less than $12,000 as reflected on the most recent state income tax return or some other appropriate evidence, or who are retired due to permanent and total disability, regardless of age, or who are blind as defined in Section 1-1-3, regardless of age or whether such person is retired, homesteads, as defined in the Constitution and laws of Alabama, are exempt from ad valorem property taxes levied by any county of this state, including such taxes levied for school districts. In no case shall the exemption exceed $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.
The Department of Revenue, by rule, may define and specify the condition or state of health that makes a person "permanently and totally disabled" and may issue certificates of disability to any person that meets such specifications. Any person who is drawing any pension or annuity from the armed services, 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 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.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Chapter 9 - Exemptions From Taxation and Licenses.
Article 1 - General Provisions.
Section 40-9-1 - Persons and Property Generally.
Section 40-9-1.1 - Stringfellow Memorial Hospital.
Section 40-9-1.2 - Alabama Eye Bank.
Section 40-9-3 - Peanuts and Pecans Stored in Licensed Warehouses.
Section 40-9-4 - Products or Materials Used in Textile Manufacture.
Section 40-9-5 - Manufacturers of Calcium Cyanamide, Aluminum or Aluminum Products.
Section 40-9-6 - Personal Property Stored for Shipment Outside of State.
Section 40-9-7 - Personal Property Held by Warehouseman for Distribution.
Section 40-9-8 - Artesian Wells Leased to Municipalities.
Section 40-9-12.1 - United Appeal Fund Organizations and Supported Charities.
Section 40-9-14 - Property Used for Public Purposes.
Section 40-9-14.2 - Airport Authorities.
Section 40-9-15 - Alabama State Fair and Exhibit Association.
Section 40-9-17 - Property Owned and Used or Held by Colleges for Certain Purposes.
Section 40-9-18 - Property of Corporation Organized for Purpose of Aiding Retired Teachers, Etc.
Section 40-9-20 - Certain Homes Owned by Veterans or Their Widows.
Section 40-9-21.1 - Verification of Eligibility by Mail for Certain Persons.
Section 40-9-21.2 - Falsely Claiming Homestead Exemption.
Section 40-9-22 - Nuclear Fuel Assemblies.
Section 40-9-24 - Property Tax Relief Fund.
Section 40-9-25 - George Lindsey Celebrity Benefit, inc., Alabama Special Olympics, inc., Etc.
Section 40-9-25.1 - Magic Moments.
Section 40-9-25.2 - Habitat for Humanity Organizations and West Alabama Youth Services, Inc. (Ways).
Section 40-9-25.3 - Rainbow Omega, Inc.
Section 40-9-25.4 - Farley L. Berman Foundation, Inc.
Section 40-9-25.5 - American Bowling Congress.
Section 40-9-25.6 - Christian Children Homes, Inc.
Section 40-9-25.7 - Franklin Memorial Clinic, Inc.
Section 40-9-25.8 - Birmingham Civil Rights Institute.
Section 40-9-25.9 - Bridge, Inc.
Section 40-9-25.11 - Little Sisters of the Poor.
Section 40-9-25.12 - Service Guild of Birmingham, inc., Early Intervention Program.
Section 40-9-25.13 - Big Oak Ranch, Inc.
Section 40-9-25.14 - Barber Vintage Motorsports Museum.
Section 40-9-25.15 - Covington Baptist Association, Inc. - Christian Service Centers.
Section 40-9-25.16 - Food Banks.
Section 40-9-25.17 - Eagles' Wings, Inc.
Section 40-9-25.18 - Alabama Marine Corps League.
Section 40-9-25.20 - Community Action Association of Alabama.
Section 40-9-25.21 - Lifesouth Community Blood Centers.
Section 40-9-25.22 - Southern Research Institute.
Section 40-9-26.1 - Birmingham Regional Paratransit Consortium, Inc.
Section 40-9-26.2 - Twg 2021 Birmingham Foundation.
Section 40-9-26.3 - Victims of Crime and Leniency, Incorporated.
Section 40-9-27 - Prescriptions for Vitamins and Supplements Exempt From Sales Taxes.
Section 40-9-27.1 - Insulin, Insulin Syringes, and Related Items Exempt.
Section 40-9-28 - Selma-Dallas County Historic Preservation Society and Valegrande Community Center.
Section 40-9-29 - Community Health Systems, Inc. and Walker Regional Medical Center.
Section 40-9-30 - Durable Medical Equipment; Exemptions From Certain Taxes.
Section 40-9-32 - Exemption of Shares in Corporations From Ad Valorem Tax.
Section 40-9-33 - Sales to a Contractor of Certain Personal Property to Be Incorporated Into Realty.
Section 40-9-34 - Hudson-Alpha Institute for Biotechnology.
Section 40-9-35 - Alabama Association of Rescue Squads.
Section 40-9-36 - Volunteer Fire Departments and Fire Protection Districts.
Section 40-9-37 - Military Death Benefits.
Section 40-9-39 - Food Pantries in Talladega County Which Distribute Food for Charitable Purposes.
Section 40-9-39.3 - Birmingham Holocaust Education Center.
Section 40-9-39.4 - Specified Community Foundation Entities.