SB204 Alabama 2010 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Trip PittmanRusty GloverScott Beason

Session

Regular Session 2010

Title

Homestead exemption, cost-of-living adjustment, Sec. 40-9-19 am'd.

Summary

SB204 would start annual cost-of-living adjustments to Alabama's homestead property tax exemptions, increasing exemptions over time based on the CPI.

What This Bill Does

Requires annual adjustments to homestead exemptions for cost of living, using the U.S. Department of Labor Consumer Price Index, starting with fiscal year 2010 and continuing each year thereafter. Maintains existing categories of exemption (under 65 and those 65 and older, or permanently disabled or blind) with specified value caps, and includes a $5,000 cap for certain low-income seniors or disabled/blind individuals; exemptions may be prorated if a homestead spans more than one county. Gives the Department of Revenue authority to define what counts as permanent and total disability and to issue disability certificates, with automatic disability certificates for those already drawing certain pensions or annuities due to disability. Keeps protections that exemptions cannot be granted if they would prevent payment of bonded debt, and allows local governments to grant additional exemptions by local action under the rules.

Who It Affects

• Homeowners not over 65 who own a homestead and would receive an exemption from state ad valorem taxes, with exemptions tied to a cap (and CPI-adjusted in the future).
• Homeowners 65 or older, or permanently disabled or blind, who would generally receive an exemption from state ad valorem taxes on their homestead, with specific provisions for low-income seniors and disability status and caps where applicable.

Key Provisions

• Annual cost-of-living adjustments to homestead exemptions beginning in fiscal year 2010, and each year thereafter, using the CPI as published by the U.S. Department of Labor.
• Disability criteria defined by the Department of Revenue; automatic certificates for individuals receiving certain disability-related pensions or annuities.
• Exemption caps and area limits: under-65 exemptions have a cap (historically up to $2,000 in assessed value with 160 acres); 65+ exemptions include a special provision for low-income seniors or those with disability up to $5,000 in assessed value with 160 acres, and exemptions may be prorated for multi-county homesteads; exemptions may not exceed the stated caps.
• Exemption cannot be granted if it would interfere with the payment of bonded indebtedness; exemptions for local taxes may be granted by county, municipal, or other local authorities, with specific procedures for how actions are taken for countywide or district taxes.
• Effective date: immediate upon passage, with the COLA provisions applying to the defined fiscal years.

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

Subjects

Taxation