HB25 Alabama 2010 Session

Summary

Primary Sponsor

Joseph C. Mitchell

Democrat

Session

Regular Session 2010

Title

Homestead exemptions, annual adjustment based on gross national product, Revenue Department to calculate, Sec. 40-9-19 am'd.

Summary

HB25 would tie the annual homestead exemption to changes in gross national product and expand who qualifies for exemptions and by how much.

What This Bill Does

It amends Section 40-9-19 to create an annual adjustment mechanism for homestead exemptions based on the annual change in gross national product. It sets specific exemption caps for different groups: general exemptions up to 4,000; residents under 65 up to 2,000; residents over 65 or disabled or blind up to 5,000, with a 160-acre limit and prorating if the property spans multiple counties. It allows the Department of Revenue to define disability health standards and to issue disability certificates, and permits local governments to grant additional exemptions by resolution, while ensuring exemptions do not interfere with bonded debt payments. The act takes effect October 1, 2009.

Who It Affects

• Homeowners with homesteads who would receive annual exemptions, with amounts determined by age, disability status, income, and potential local exemptions.
• Taxing authorities and the Department of Revenue responsible for administering, calculating, approving, and adjusting exemptions, and for implementing local exemption provisions.

Key Provisions

• Annual adjustment of homestead exemptions based on the annual change in the gross national product, calculated by the Department of Revenue.
• Exemption caps vary by category: general up to $4,000; residents under 65 up to $2,000; residents over 65 or disabled/blind up to $5,000; 160-acre limit; prorating when the property is in more than one county.
• Disability criteria and automatic disability certification processes for those receiving pensions or disability benefits; Department of Revenue authority to define health standards for permanent and total disability.
• Local governments may grant exemptions for homesteads not over 65 by resolution/ordinance, with caps and prorating rules; actions affecting countywide or district taxes involve the relevant school system governing bodies.
• Exemptions cannot be granted if they would prevent the payment of bonded indebtedness.
• Effective date: October 1, 2009.

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