HB394 Alabama 2010 Session

Summary

Primary Sponsor

Duwayne Bridges

Republican

Co-Sponsor

Richard J. Laird

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

HB394 would extend the homestead ad valorem tax exemption to permanently and totally disabled veterans and their surviving spouses, excluding school taxes.

What This Bill Does

It would exempt the primary residence of permanently and totally disabled veterans and their surviving spouses from state ad valorem taxes, but not from school taxes. Eligibility requires permanent Alabama residency as of January 1 of the tax year and disability status defined by the Department of Revenue, with automatic qualification if the veteran receives a disability pension. The exemption can transfer to the surviving spouse after the veteran’s death, may be moved to a new primary residence if the spouse remarries or sells, is prorated if the home spans more than one county, and applies for tax years beginning October 1, 2011 onward; it cannot be used if it would interfere with bonded debt payments.

Who It Affects

• Permanently and totally disabled veterans who are permanent residents of Alabama and own a homestead as their primary residence, who would receive an exemption from state ad valorem taxes (excluding school taxes).
• Surviving spouses of permanently and totally disabled veterans, who may retain or transfer the exemption to their own primary residence under specified conditions.

Key Provisions

• Adds a state ad valorem tax exemption for the homesteads of permanently and totally disabled veterans and their surviving spouses, excluding school taxes.
• Eligibility and certification: the Department of Revenue may define disability criteria and issue certificates; veterans drawing disability pensions or related payments may automatically qualify.
• Continuation and transfer: exemption can carry to the veteran’s surviving spouse after death and can be transferred to a new primary residence if the spouse remarries or sells, with prorating if the homestead is in more than one county.
• Limitations: exemption cannot be used if it would prevent payment of bonded indebtedness secured by the tax; multi-county exemptions are prorated; the act becomes operative for tax years beginning October 1, 2011 (effective after governor’s approval).
• Administration: Department of Revenue may regulate the health criteria for disability and issue certificates accordingly.

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