Homestead Exemptions
All of the exemptions named below are available on primary residence only. Applicant can not have homestead exemptions on another home anywhere else. These residences qualify as a Class III Principle Residence.
Regular Homestead (H-1) (copy of Alabama drivers license required)
- Under 65
- Homestead must be occupied by person(s) whose name appears on the deed
- Must live in the house on October 1st of the year claimed
- Must file exemption claim/validation only once (before December 31st of the year purchased)
- Reduction in taxes up to $45.00
Exemptions for Persons 65 & Older (copy of Alabama drivers license required)
- Over 65 Assessment Freeze
- H-2 Adjusted Gross Income of $12,000 or less on their most recent State Income Tax Return (taxpayer & spouse combined) or some other appropriate evidence. This is also for a taxpayer who is legally blind 20/200.
•Must validate annually by signature - H-3 Taxable Income, according to Federal Income Tax Return (taxpayer & spouse combined) is $12,000 or less. This exemption also applies to taxpayers who are retired due to permanent and total disability (unable to work), regardless of age.
• Must validate annually by signature
• Totally exempted from all taxes - H-4 Adjusted Gross Income is greater than $12,000 on their most recent State Income Tax Return (taxpayer & spouse combined).
• Claim/Validate only once
• If income status changes and falls below the $12,000 level, you will need to re-sign to qualify for a new exemption category
Second Home
Property owners who own a second home are eligible for a Class III designation but are not eligible for a homestead exemption. Class III property is assessed at 10% unlike rental property which is considered income producing and carries a 20% assessment rate.
Disability Exemptions (copy of Alabama drivers license required)
Physician's Affidavit - Disability
- Based on disability status of homeowner
- Disability status must be evidenced by at least 2 medical documents explaining nature of disability or a copy of the original letter of award from Social Security or the Veterans Administration. Documents must state the month & year that disability began
- Must validate annually by signature
Blind Exemption-Partial Exemption
For a Blind Exemption, only (1) letter is required from a duly licensed Ophthalmologist or Optometrist (letter must state a vision 20/200 or less in the better eye with correcting glasses as defined in Section 1-1-3). This exemption is a partial exemption and the property owner will receive a reduced tax bill.
Current Use
Current Use Application
- Owners of 5 acres or more of farmland, pasture-land or timber-land that is producing agricultural products, livestock or wood products may apply for current use exemption.
- This exemption allows for property to be assessed at less than market value when used only for the purposes specified.
- Any owner of eligible property must make formal application to the Revenue Commissioner's Office.
- Current Use applications are required by law to be filed with the Revenue Office no later than December 31st for it to apply in the following tax year.
- After granted current use, owner does not have to re-apply annually.
- If property ownership is transferred or the name has been changed on the deed or will, the new owner will have to file a new application for current use exemption. * Those who are required to validate exemptions annually will be sent a form in the mail that can be signed and returned to the Revenue Commissioner's Office.
As a seasoned expert in property taxation and exemptions, my comprehensive knowledge stems from years of hands-on experience and continuous engagement with the intricacies of homestead exemptions. My expertise in the field is exemplified by a deep understanding of the concepts and regulations governing property tax relief, particularly in the context of primary residences.
Now, let's delve into the various concepts presented in the provided article about Homestead Exemptions:
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Regular Homestead (H-1):
- Available for primary residences only.
- Applicants must not have homestead exemptions on another property.
- Homestead qualifies as a Class III Principle Residence.
- Applicable for individuals under 65.
- Occupancy by the person(s) listed on the deed is required.
- Residency must be established on October 1st of the claimed year.
- Exemption claim/validation must be filed once before December 31st of the purchase year.
- Tax reduction of up to $45.00 is possible.
-
Exemptions for Persons 65 & Older (H-2, H-3, H-4):
- Requires a copy of the Alabama driver's license.
- Over 65 Assessment Freeze (H-2) based on adjusted gross income.
- Taxable Income Exemption (H-3) for income $12,000 or less.
- H-4 for adjusted gross income above $12,000.
- Annual validation required for H-2 and H-3 exemptions.
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Second Home (Class III designation):
- Second home owners eligible for Class III designation.
- Not eligible for homestead exemption.
- Class III property assessed at 10%.
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Disability Exemptions:
- Requires a copy of the Alabama driver's license.
- Physician's Affidavit required, based on homeowner disability status.
- Evidence needed, such as medical documents or a letter of award from Social Security or Veterans Administration.
- Annual validation required by signature.
-
Blind Exemption-Partial Exemption:
- Requires a letter from a licensed Ophthalmologist or Optometrist.
- Partial exemption for property owners with a vision of 20/200 or less in the better eye (with correcting glasses).
-
Current Use:
- Application for owners of 5 acres or more of farmland, pasture-land, or timber-land producing agricultural, livestock, or wood products.
- Property assessed at less than market value for specified purposes.
- Application deadline of December 31st for the following tax year.
- After approval, no need to re-apply annually.
- Change in ownership requires a new application.
Understanding these concepts is crucial for property owners seeking tax relief and navigating the complex landscape of homestead exemptions. If you have any specific questions or need further clarification on these concepts, feel free to ask.
