HB151 Alabama 2010 Session

Summary

Primary Sponsor

Richard J. Laird

Independent

Session

Regular Session 2010

Title

Homestead exemption, ad valorem tax except taxes for schools, permanently and totally disabled veterans and surviving spouses, exempt from under certain conditions, Sec. 40-9-19 am'd.

Summary

HB151 creates a new homestead ad valorem tax exemption in Alabama for permanently and totally disabled veterans and their surviving spouses, exempting their primary residence from state taxes (excluding school taxes).

What This Bill Does

If enacted, eligible permanently and totally disabled veterans and their surviving spouses would have their homestead exempt from all state ad valorem taxes, except taxes for schools. The exemption relies on residency in Alabama and disability certification, with the Department of Revenue defined to issue disability certificates (automatic for those already receiving VA disability benefits). The exemption can carry over to the surviving spouse after the veteran’s death and may be transferred to a new primary residence if certain conditions are met. For properties spanning more than one county, the exemption is prorated between counties. The law takes effect for tax years beginning October 1, 2011.

Who It Affects

• Permanently and totally disabled veterans who are permanent residents of Alabama (would receive exemption from state ad valorem taxes on their homestead, excluding school taxes).
• Surviving spouses who hold the veteran's homestead and permanently reside there, with rules allowing exemption carryover to a new primary residence if the spouse remarries or sells and moves.

Key Provisions

• Creates a homestead exemption from all state ad valorem taxes for permanently and totally disabled veterans and their surviving spouses, excluding school taxes.
• Requires the veteran or surviving spouse to be a permanent resident of Alabama on January 1 of the tax year (or at the time of entitlement) and to meet disability criteria defined by the Department of Revenue.
• Provides for certificates of disability (automatic for those with VA or equivalent disability benefits) and allows the exemption to carry over to the surviving spouse after the veteran’s death, with transfer rules to a new primary residence if remarriage does not occur.
• Prorates the exemption if the homestead is located in more than one county, based on the area of the home in each county.
• Includes a provision that the exemption shall not be applied if it would interfere with the payment of bonded debt secured by taxes.
• Effective date: tax years beginning October 1, 2011; operation date described as the first day of the third month after passage/approval.

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

Subjects

Taxation