A homestead exemption is a tax break which a property owner may be entitled, if they own a single-family residence and occupy it as their primary residence on the first day of the tax year for which they are applying. The following are four types of homestead exemptions:
Homestead Exemption 1
Homestead Exemption 1 is available to all citizens of Alabama who own and occupy a single-family residence, including mobile homes, as their home and use this property for no other purposes. The amount of the exemption is up to $4,000.00 in assessed value for state taxes and up to $2,000.00 in assessed value for county taxes.
Homestead Exemption 2
Homestead Exemption 2 is for persons over age 65 whose state adjusted gross income is less than $12,000.00 annually. This exemption is for the total assessed value of state taxes and up to $5,000.00 in assessed value for county taxes. Those who are permanently and totally disabled or blind, regardless of income, are entitled to this exemption also.
Homestead Exemption 3
Homestead Exemption 3 is for persons over age 65 or who are permanently and totally disabled. This exemption is from all property taxes for those who are totally disabled, regardless of income. For those who are over 65, this exemption is from all property taxes if their federal net taxable income is $7,500.00 or less.
Homestead Exemption 4
Homestead Exemption 4 is for persons over 65, regardless of income. This exemption is for the total assessed value of state taxes and up to $2,000.00 in assessed value for county taxes.
Requirements for Exemptions
Proof of age is required and may be established by a driver's license, birth certificate, insurance forms, church records, school records, etc.
To prove disability, you must furnish a statement from two different sources for verification of your total disability. Letters from physicians, Veterans Administration, and retirement organizations are all acceptable proof and must be worded as applying. People who are disabled may receive service without coming to the courthouse by calling 256-351-4690.
How to Apply for Exemptions
Application for exemptions should be filed by December 31of each year based upon status (owner occupied, age 65, and permanent and total disability) of property and claimant before October 1. In October, a renewal form is mailed to the property owner who has previously qualified, allowing for the claim to be renewed by mail.