House Bill 397 Alabama 2026 Session

Summary

Primary Sponsor

Danny CrawfordRepresentative

Republican

Session

2026 Regular Session

Title

Taxation; to increase the adjusted cap and allow the unremarried widow or widower of certain individuals to claim the homestead exemption

Summary

HB397 would raise the income eligibility cap for Alabama's homestead exemptions and extend the exemption to unremarried widows and widowers of eligible individuals.

What This Bill Does

It increases the income eligibility cap for homestead exemptions, enabling more residents who are 65+, or who are permanently disabled or blind, to qualify. It adds the unremarried widow or widower of a decedent to the list of eligible claimants, if specific conditions are met (deed ownership and income limits). Local taxing authorities can grant exemptions from the increased portion of ad valorem taxes for these groups, with a maximum exemption of up to $5,000 of assessed value (or 160 acres) and prorating for multi-county properties. The bill sets disability-status criteria and certificate procedures through the Department of Revenue, including automatic certificates for certain pension recipients, and specifies when the changes take effect and apply.

Who It Affects

• Group 1: Residents 65+ or those who are permanently disabled or blind who meet the income cap; they would receive exemption from state ad valorem taxes on their homestead (and up to 160 adjacent acres) under the revised thresholds.
• Group 2: Unremarried widows or widowers of a decedent who had the homestead exemption and who meet deed and income requirements; they would be eligible to claim the exemption for their own home.

Key Provisions

• Amend Sections 40-9-19, 40-9-19.1, and 40-9-21 to raise the income-eligibility cap and extend the exemption to the unremarried widow or widower of a decedent.
• Allow municipalities to grant exemptions from the increased portion of ad valorem taxes for the listed groups (65+, disabled, blind, and unremarried widows/widowers) and set corresponding caps and prorating rules for multi-county properties.
• Set the exemption cap at up to $5,000 in assessed value (or 160 acres) for the homestead exemption and apply it to principal residence and adjacent land.
• Define disability standards and issue certificates through the Department of Revenue, including automatic certificates for certain pension recipients and provision for two-physician affidavits where needed.
• Apply to tax years beginning January 1, 2027, with the act taking effect June 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.