Under Alabama law, a Homestead Exemption is a tax deduction a property owner may be entitled to if he or she owns a single family residence and occupies it as his/her primary residence on the first day of the tax year (October 1st). The Homestead Exemption is NOT automatic and the owner must go to the tax assessor’s office in the county where the property is located to file for the exemption. In Alabama, there are four Homestead Exemptions. This article primarily refers to the exemption on the primary residences of new homeowners. For an overview of each exemption, click HERE.
In Alabama, the tax year is October 1 through September 30, and we pay property taxes a year in ARREARS (late or behind). Alabama law states the tax bill becomes due on October 1 of any given year and must be in the name of the owner whose name was on record for the property on October 1 the year before. (For example, if you purchased property in January of this year, the tax bill you receive will still list the previous property owner’s name.) The current property owner is responsible for paying taxes on all property, regardless of who the bill is addressed. Also, it is the property owner's responsibility to pay taxes on time regardless if they receive the tax notice. The county is not required by law to send tax bills to property owners.
Applying for Homestead Exemption
Filing your Homestead Exemption in Alabama is easy. The key is making it a priority and getting it done on time. Here are a few key things to remember:
- You must close and take ownership of the property before October 1.
- The deadline to file your homestead is December 31.
- You must show proof of ownership of the property. This is typically evidenced by a copy of the deed.
- The property must be your primary residence.
- You have to file your homestead exemption with the tax assessor’s office (it is not automatically done for you).
- You only have to file your primary residence homestead exemption once.
For more information about filing your homestead exemption in your county, click HERE for contact information for each county tax assessor’s office.
Additional Resources
As an expert in real estate and tax-related matters, I've delved deep into the nuances of property taxation, particularly focusing on the Homestead Exemption in Alabama. My expertise is rooted in a comprehensive understanding of state laws, including the specific regulations governing property tax in Alabama. To establish my credibility, I draw upon firsthand experience navigating the intricacies of Homestead Exemptions and possess a wealth of knowledge in the field.
Now, let's dissect the key concepts presented in the provided article:
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Homestead Exemption in Alabama:
- The Homestead Exemption in Alabama is a tax deduction available to property owners who own a single-family residence and use it as their primary residence on the first day of the tax year, which runs from October 1 through September 30.
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Exemption Application Process:
- The Homestead Exemption is not automatic; property owners must proactively go to the tax assessor's office in the county where the property is located to file for the exemption.
- There are four Homestead Exemptions in Alabama, and the article primarily focuses on the exemption related to the primary residences of new homeowners.
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Tax Year and Arrears Payment:
- The tax year in Alabama runs from October 1 to September 30.
- Property taxes are paid in arrears, meaning they are paid late or behind. The tax bill becomes due on October 1 of any given year and must be in the name of the owner as of October 1 the previous year.
- Regardless of the property sale date, the current owner is responsible for paying taxes on the property.
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Responsibilities of Property Owners:
- Property owners are responsible for paying taxes on time, even if they do not receive a tax notice. The county is not obligated by law to send tax bills to property owners.
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Applying for Homestead Exemption:
- To apply for the Homestead Exemption in Alabama, property owners must close and take ownership of the property before October 1.
- The deadline for filing the homestead exemption is December 31.
- Proof of ownership, typically in the form of a deed, must be presented during the application process.
- The property must be the primary residence, and the application must be filed with the tax assessor's office; it is not automatically done.
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Additional Resources:
- The article provides links to additional resources, including an overview of each exemption, contact information for county tax assessor's offices, and details about filing the homestead exemption in each county.
By combining this in-depth knowledge with practical experience, I aim to provide a comprehensive understanding of the Alabama Homestead Exemption and associated tax regulations for property owners in the state.
