SB8 Alabama 2010 1st Special Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyRodger SmithermanQuinton RossRoger Bedford, Jr.Priscilla DunnVivian Davis FiguresJerry L. Fielding

Session

First Special Session 2010

Title

Contracts, not competitively bid, Legislature by joint resolution may void ab initio

Summary

SB8 would tie Alabama’s homestead property tax exemptions to the cost of living and expand how much and who can be exempt, with annual inflation-based updates and new limits for different groups.

What This Bill Does

Requires annual cost-of-living adjustments to homestead exemptions starting in the 2008 fiscal year. Creates age-, income-, and disability-based exemption rules, with full state tax exemption for certain seniors or disabled/blind individuals and additional county tax exemptions under specific conditions. Allows local governments to grant extra exemptions for residents under 65, but caps the extra exemption so that, when combined with other exemptions for the same levy, the total does not exceed $4,000 in assessed value. Provides up to a $5,000 exemption from county ad valorem taxes (including school taxes) for seniors over 65 with low income or those retired due to permanent disability or blind, prorated if the home sits in more than one county. Prohibits granting exemptions if they would prevent payment of bonded indebtedness. Gives the Department of Revenue authority to define disability criteria and issue disability certificates, including automatic certificates for people receiving certain pensions.

Who It Affects

• Homeowners under 65: may receive a baseline exemption up to $2,000 from non-county ad valorem taxes, with local authorities allowed to grant an additional exemption up to a combined total cap of $4,000 for the same levy.
• Homeowners 65 and older or permanently disabled or blind: eligible for special treatment, including full exemption from state ad valorem taxes for certain groups, and potential additional county tax exemptions up to $5,000 (for 65+ with low income or disability/blind), prorated if the home spans multiple counties.
• Counties, municipalities, and school districts: empowered to grant local exemptions via resolutions or ordinances and must manage exemptions so they fit within the caps and, where applicable, coordinate across county lines.
• Bondholders and debt issuers: exemptions cannot be granted in a way that would interfere with debt payments secured by tax revenues.
• Department of Revenue: gains authority to set disability standards, issue disability certificates, and automatically certify those already receiving certain pensions.

Key Provisions

• Amends Section 40-9-19 to base exemptions on cost-of-living adjustments and to set group-specific exemption amounts and caps.
• Annual cost-of-living adjustments apply to all exemptions beginning with FY 2008.
• Under-65 exemptions: state-level exemption up to $2,000; local exemptions may add up to a total cap of $4,000 per levy when combined with other exemptions.
• 65+ with income under $12,000 or those permanently disabled or blind: county-level exemption from ad valorem taxes (including school taxes) up to $5,000, prorated if the homestead is in more than one county.
• Exemption amounts cannot be granted if they would hinder payment of bonded indebtedness.
• Department of Revenue may define disability conditions and issue certificates; automatic certificates for those receiving certain pensions.
• Exemptions are prorated across counties for multi-county homesteads and may be adjusted or rescinded by local governing bodies.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Contracts