SB132 Alabama 2010 Session

Summary

Primary Sponsor

Hank Sanders

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

SB132 would ensure homestead tax exemptions for age- or disability-related relief apply only to the eligible owner's share when the property is jointly owned, and would set rules for calculating that share.

What This Bill Does

It amends sections 40-9-19 and 40-9-21 to require that the exemption be reduced by the proportion of ownership owned by non-eligible co-owners when the homestead is held jointly. It requires claimants to provide documentation establishing their ownership percentage; if not provided, shares are assumed equal based on the most recent deed. It authorizes the Department of Revenue to issue regulations to identify and calculate proportionate shares, define disability, and issue certificates of disability (including automatic certificates for certain pensioners). It also sets exemption caps and allows proration across counties, and prohibits granting exemptions if they would interfere with bonded debt payments; the act takes effect October 1, 2010.

Who It Affects

• Residents who are eligible for homestead exemptions due to age, disability, or low income who own property jointly with others not eligible for the exemption, as their exemption would be reduced to reflect their ownership share.
• Co-owners who are not eligible for the exemption and local and state tax authorities (assessors and the Department of Revenue), who must determine and apply the proportionate shares and implement the new regulations.

Key Provisions

• Exemption for eligible owners on jointly owned property will be reduced by the non-eligible co-owners' share of ownership.
• Claimants must provide legal documents to establish ownership percentage; if not provided, exemptions are determined by assuming all owners share equally based on the most recent deed.
• Department of Revenue will promulgate regulations to identify and calculate proportionate share exemptions and may define disability criteria; may issue certificates of disability, including automatic certificates for certain disabled individuals.
• Exemption amounts are capped (up to $4,000 or $2,000 for certain categories, and up to $5,000 in some provisions) and may be prorated when the property is in more than one county; exemptions can be adjusted or rescinded for multi-county scenarios.
• Exemptions cannot be granted if they would prevent payment of bonded indebtedness secured by the taxes in question.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Homestead Exemption