HB422 Alabama 2022 Session

Summary

Primary Sponsor

Debbie Wood

Republican

Session

Regular Session 2022

Title

Homestead exemptions, income threshold for resident taxpayer over 65 years of age increased, Sec. 9-18-19 am'd.

Summary

HB422 would raise the income limit for seniors over 65 to qualify for the homestead exemption from state ad valorem taxes, increasing the threshold from $12,000 to $20,000 for tax years beginning October 1, 2022.

What This Bill Does

The bill expands eligibility for the homestead tax exemption for seniors by increasing the annual income limit to $20,000. Exemptions would still apply to homesteads up to $5,000 in assessed value or 160 acres, and the exemption would apply to county and school district taxes, prorated if the property spans multiple counties. It also extends eligibility to residents who are permanently disabled or blind, regardless of age, with disability rules defined by the Department of Revenue and automatic certificates for those already disabled. Local authorities can grant, adjust, or rescind exemptions by resolution, and the exemption cannot be granted if it would interfere with bonded debt payments; the act becomes effective after the Governor signs it and the specified waiting period.

Who It Affects

• Senior residents over 65 with an annual adjusted gross income of up to $20,000 would become eligible for the homestead exemption from state ad valorem taxes on their homes (up to $5,000 assessed value or 160 acres, prorated across counties).
• Residents who are permanently disabled or blind would qualify for the exemption regardless of age, subject to the same value/acreage limits and prorating rules.

Key Provisions

• Increases the income threshold for 65+ homestead exemptions from $12,000 to $20,000 AGI for tax years beginning on or after October 1, 2022.
• Maintains the exemption cap at $5,000 in assessed value or 160 acres, with prorating when a homestead is in more than one county.
• Applies to ad valorem property taxes levied by counties and school districts; local authorities may grant, adjust, or rescind exemptions by resolution or ordinance.
• Disability and blindness eligibility is expanded to include individuals regardless of age for the disability/blind exemption, with disability criteria defined by the Department of Revenue and automatic certificates for those with permanent disability.
• The exemption cannot be granted if it would prevent payment of bonded indebtedness; the Department of Revenue may define disability criteria by rule.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tax Exemptions