HB162 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Richard Lindsey
Democrat
Session: Regular Session 2010
Title: Homestead exemption, jointly owned property, exemption applies only to qualified owner, Secs. 40-9-19, 40-9-21 am'd.
Summary: HB162 clarifies that the homestead tax exemption for age or disability applies only to an owner's share if the property is owned jointly with someone not eligible for the exemption.
What This Bill Does
HB162 changes how exemptions are applied when an eligible owner shares a home with someone not eligible. It says the exemption will be reduced to the eligible owner's proportionate share of the property. The owner claiming the exemption must provide legal documents establishing their ownership percentage; if not provided, the exemption will be calculated as if all owners share equally based on the most recent deed. The Department of Revenue would create regulations to identify and calculate these shares and may issue disability certificates; exemptions would be prorated across counties for multi-county properties.

Who It Affects
Eligible homestead owners (such as those over 65 or disabled) who own the property jointly with someone not eligible for the exemption would have their exemption limited to their own ownership share.
Non-eligible co-owners and local tax authorities; the exemption on the property may be reduced for the eligible owner, and tax assessors would require documentation and, for multi-county properties, exemptions would be prorated by county.

Key Provisions
Proportionate-share rule: if the property is owned jointly with non-eligible persons, the exemption applies only to the owner’s proportionate share.
Documentation requirement: the owner claiming the exemption must provide legal documents establishing their ownership percentage; if not provided, ownership is assumed to be equal among owners based on the most recent deed.
Regulatory authority: the Department of Revenue shall promulgate regulations to identify and calculate proportionate-share exemptions and may define disability criteria; may issue certificates of disability, with automatic certificates for those receiving certain pensions or disability benefits.
Bond debt protection: the exemption cannot be granted if it would prevent the payment of bonded indebtedness.
Multi-county proration: for homesteads located in more than one county, the exemption is prorated by the area of the homestead in each county.
Effective date: the act becomes effective October 1, 2010.

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