SB8 Alabama 2010 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsor

Trip Pittman

Session

Regular Session 2010

Title

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

Summary

SB8 would adjust Alabama's homestead exemptions for cost-of-living changes by adding annual CPI-based increases to the amount of property tax relief available to homeowners.

What This Bill Does

The bill amends Section 40-9-19 to provide an annual cost-of-living adjustment to homestead exemptions based on the CPI. It maintains existing categories of exemption for different groups, but sets specific dollar caps for under-65 residents and for seniors or disabled residents, and allows local authorities to grant additional exemptions for under-65 homeowners. It also enables automatic disability certificates for those with pensions or disabilities, prorates exemptions for multi-county homes, and prohibits exemptions if they would interfere with debt payments; the measure takes effect immediately upon passage.

Who It Affects

• Residents under 65 who own a homestead: their state tax exemption remains but is capped (and supported by local exemptions up to a total of $4,000 in some cases), with annual CPI-based increases to the exemption amount.
• Residents over 65 or permanently disabled or blind: they receive broader exemptions from state and county taxes (including school taxes in some cases), up to a $5,000 cap for county taxes, with automatic disability certificates where applicable, and annual CPI-based increases; exemptions may be prorated if the home spans multiple counties.

Key Provisions

• Annual cost-of-living adjustment: exemptions will be adjusted each year using the CPI, starting with the specified fiscal year.
• Disability status and certificates: the Department/Commissioner can define disability, issue certificates, and automatically grant certificates to those with qualifying pensions or disabilities.
• Exemption caps and locality: under-65 exemptions have specific value caps (up to $2,000 at the state level and up to $4,000 when combined with local exemptions), while seniors and disabled individuals may have higher caps (up to $5,000) and multi-county proration rules apply.
• Local authority: counties, municipalities, and other local taxing authorities may grant additional exemptions for under-65 residents, within the specified limits and with procedural requirements for how actions are taken.
• Debt protection: exemptions cannot be granted if they would prevent payment of bonded indebtedness secured by the taxes involved.
• Effective date: the act becomes effective immediately upon passage and approval by the Governor.

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