What is a homestead exemption?

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What is a homestead exemption?

View All General - PT, Real Property FAQs

A homestead exemption is defined as a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres. The property owner may be entitled to a homestead exemption if he or she owns a single-family residence and occupies it as their primary residence on the first day of the tax year for which they are applying. There are several different types of exemptions a home owner can claim in the State of Alabama. Please visit your local county office to apply for a homestead exemption. For more information regarding homestead exemptions, view our Homestead Exemptions page.

Related FAQs in General - PT, Real Property

What should I do if I add or remove improvements?

The law requires that owners, or their agent, must visit the Revenue Commissioner’s Office no later than December 31 to sign a new assessment officially reporting any improvements made to or any removal of structures or features from their property, on or before October 1 of that year. Examples of improvements that should be reported would include: new structures or additions, swimming pools, extensive repairs, remodeling, or renovations; adding a fireplace, extra bath, patio, deck, carport, garage, etc. However, such things as re-roofing, minor repairs and painting, (normal maintenance type items), would not require a reassessment.

What should I do when I purchase property?

Record the deed in the Probate Office.Assess the property in the Revenue Commissioners Office. Note: Be sure to bring the deed.If you purchased property during the year, you need to make sure the taxes are paid. The tax bill will usually be in the previous owner’s name. You are responsible for taxes on all property you own, no matter how the bill may be listed.Report all address changes promptly to your local Revenue Commissioner’s Office in writing.

When are my property taxes due?

Property taxes are due October 1, and are delinquent after December 31.

Will my taxes go up every year?

There are two reasons for your property taxes to increase: (1) a tax rate (millage) increase, or (2) an increase in the appraised value of the property. The first reason, a tax rate increase, would have to come from a vote of the citizens or by the taxing authority (County Commission) to increase (or decrease) the millage rate. The second situation, involving an increase in the appraised value, would come from a court ordered re-appraisal or from an “economically-based” increase in the market value of properties in the county, resulting in an increase in the appraised value.

I am over 65. Do I have to pay property taxes?

If you are over 65 years of age, or permanent and totally disabled (regardless of age), or blind (regardless of age), you are exempt from the state portion of property tax. County taxes may still be due. Please contact your local taxing official to claim your homestead exemption. For county contact information, view the county offices page.

If I didn’t receive a tax statement, do I have to pay the taxes?

The County Revenue Commissioner is not required to mail tax notices and does so only as a courtesy to the taxpayer. You are responsible for the payment of taxes whether you receive a statement or not.

In the realm of property taxation and real estate matters, I bring a wealth of expertise. Let's delve into the concepts touched upon in the article you provided:

Homestead Exemption: This is a tax exemption often granted to homeowners on their primary residence. It aims to reduce the property tax burden on individuals who own and occupy their homes. In Alabama, this exemption is applicable to single-family owner-occupied dwellings and their associated land, limited to 160 acres.
Property Assessment: The assessment process involves evaluating the value of a property for taxation purposes. Owners or their agents must report any improvements or changes made to the property by visiting the Revenue Commissioner's Office before December 31 each year. This includes additions, structural changes, or significant renovations. Minor maintenance, like painting or routine repairs, typically doesn't necessitate reassessment.
Property Purchase: When buying property, it's crucial to record the deed in the Probate Office and assess the property in the Revenue Commissioner’s Office. This ensures proper ownership documentation and taxation.
Property Tax Payment and Due Dates: In Alabama, property taxes are due on October 1 and become delinquent after December 31. Property owners are responsible for timely payment, even if they haven't received a tax statement.
Factors Influencing Tax Changes: Property tax changes can result from two main factors: a change in the tax rate (millage) due to citizen votes or taxing authority decisions, and an increase in the appraised value of the property. The latter can occur through court-ordered reappraisals or market-driven value hikes.
Exemptions for Senior Citizens and Disabled Individuals: Individuals aged 65 or older, those permanently and totally disabled (regardless of age), or blind (irrespective of age) may qualify for exemptions from the state portion of property tax. However, county taxes might still be applicable.
Tax Statement Receipt: While county revenue commissioners may send tax notices as a courtesy, property owners remain responsible for tax payments even if they don't receive a statement.

Understanding these concepts is vital for property owners in Alabama to navigate tax obligations, exemptions, and assessment procedures effectively.