The Homestead Exemption

The most common or prevalent exemption is the "homestead exemption". Homestead exemptions are favorable or preferential tax assessments for taxpayers who own and occupy property in which they make their claim for exemption.

§40-9-19, Code of Alabama-1975 (Homesteads), instructs as follows; "Homesteads, as defined by the constitution and laws of Alabama, are exempted from all state ad valorem taxes. In no case shall the exemption herein made apply to more than one person, head of the family, nor shall the said exemption exceed $4,000 in assessed value nor 160 acres in area for any resident of this state".

If you have acquired property in Elmore County which serves as your primary and principal residence or "homestead", on or prior to October 1^st of the tax year, you may be entitled to a reduction in the amount of your taxes. Taxpayers who are 65 years of age or older or totally disabled on October 1^st, the "law" or "lien" date, and who have timely filed proper documentation verifying and substantiating their claim for exemption, may be entitled to additional or increased exemption based on income.  Due to the fact that these exemptions are based on income, which may change from year to year, annual verification of eligibility is required.  After the initial claim is established, the Revenue Commissioner's Office mails form(s) annually in order to accommodate and facilitate this requirement.   Alabama's ad valorem or property tax law is predicated in favor of the tax and against the exemption.  Alabama law clearly makes the taxpayer responsible for claiming exemption(s) by submitting required documentation by December 31^st of the tax year.  This procedure of mailing form(s) is attempt to accommodate and provide service only, and does not relieve claimant or taxpayer of responsibility for confirming timely submission of all appropriate verification and required documentation.

The Revenue Commissioner’s Office respectfully requests that all initial claims for exemption be made in person, by agent or personal representative. Please bring all available documentation when claiming homestead or any exemption including documentation verifying income when claiming "over 65" or "total disability" exemption.  All claims for "total disability" exemption require qualifying documentation from Social Security or verification by at least two attending physicians.  Anyone having questions or requiring more information concerning the appropriate or required documentation should contact the Revenue Commissioner’s Office.

According to the Alabama Constitution, it is impossible for a taxpayer to have more than one homestead. The previously mentioned exemptions apply only to the taxpayer’s principal and primary residence or "homestead".

Ad valorem or property taxes are assessed each October 1, the "law" or "lien" date, to the owner of record on that date. This means a lawful ad valorem or property tax lien attaches to the property every October 1st. In Alabama property or ad valorem tax is one year in arrears.  Property tax is determined by the ownership, conditions, status, situs, etc., of the property on October 1st of the tax year, and billed to the owner of record on the prior October 1^st.  Simply put, the prior October 1st determines tax due the subsequent or following October.   In Alabama taxes become due on October 1st and are considered delinquent and past due after December 31st. Alabama law does not require notice of taxes due. Anyone acquiring property, including business personal property or privately owned aircraft, during the tax year or after October 1^st, may have effectively acquired the lawfully attached tax lien.  For this reason it is in the purchaser’s or new owner’s interest to confirm satisfaction of this lawfully attached tax lien.

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