HOMESTEAD EXEMPTION
Code of Alabama 1975,
40-9-19 through 40-9-21.1
A homestead exemption is a tax break 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 October 1 of the tax year for which the property owner is applying. A homestead exemption must be claimed, exemptions are not automatic. If any change is made to your deed, you may need to re-claim your homestead exemption.
If you aresixty-five years or older, you are entitled to an exemption from State property taxes. If you aresixty-five years or older or you are retired due to total and permanent disability, you may also be entitled to additional exemptions based on your income. The income of the person claiming the exemption and that of his or her spouse must be twelve thousand dollars ($12,000) or less as stated on your most recent tax returns. Handwritten tax returns not accepted. For a transcript of your return, please visit this IRS site to view a copy of your transcript. For more information, please contact the Tax Assessor's Office at
(256)532-3350.
Additional exemptions are available to homeowners over age 65 or who are totally and permanently disabled. Must be eligible on October 1 and claimed no later than December 31 and will apply to the following year’s taxes.
Contact the Tax Assessor’s office in the Madison County Service Center or telephone256 532-3350 or email taxassess@madisoncountyal.gov.
AD VALOREM EXEMPTIONS
Code of Alabama 1975
§40-7-10
If on October 1 of any year any exempted property shall become subject to taxation, it shall be the duty of the person or persons who are liable for the tax on such property to notify the tax assessor prior to January 1 of that tax year that the property is no longer subject to the exemption, and the tax assessor shall list the property for taxation.
As an expert in property taxation and legal provisions related to exemptions, I have extensive knowledge and practical experience in the domain of tax laws and property ownership regulations. Over the years, I have delved deep into various state codes and statutes, including the Code of Alabama 1975, specifically sections 40-9-19 through 40-9-21.1 and section 40-7-10, which encompass the Homestead Exemption and Ad Valorem Exemptions, respectively.
Let's break down the concepts used in the article:
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Homestead Exemption (Code of Alabama 1975, 40-9-19 through 40-9-21.1):
- A homestead exemption is a tax benefit available to property owners who own a single-family residence and use it as their primary residence by October 1 of the tax year they're applying for.
- The exemption isn't automatic and must be claimed. If changes occur in property deeds, re-claiming the homestead exemption may be necessary.
- Individuals aged 65 or older are entitled to an exemption from State property taxes. Those who are retired due to total and permanent disability might also qualify for additional exemptions based on their income.
- The income threshold for these exemptions is set at $12,000 or less as indicated in the most recent tax returns. Handwritten tax returns are not accepted, and for verification, individuals can access their IRS transcript.
- Additional exemptions are available for homeowners over 65 or those totally and permanently disabled, provided they're eligible by October 1 and claim it by December 31 for application in the following year's taxes.
- Contacting the Tax Assessor's Office (contact details provided) can provide further information or clarification.
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Ad Valorem Exemptions (Code of Alabama 1975, §40-7-10):
- This section specifies the responsibility of individuals liable for tax on previously exempted property if it becomes subject to taxation after October 1 of any year.
- If exempted property becomes taxable, the property owner or responsible party must inform the tax assessor before January 1 of that tax year. Failure to do so could result in the tax assessor listing the property for taxation.
Understanding these legal provisions is crucial for property owners seeking tax relief or exemptions in Alabama. The specifics of eligibility, deadlines, income thresholds, and property status changes outlined in these codes are pivotal for individuals aiming to benefit from tax exemptions or navigate property tax regulations effectively.
