Current through Register Vol. 42, No. 11, August 30, 2024
(1) PURPOSE - This
rule is issued pursuant to authority contained in Section
40-9-19,
40-9-21 and
40-9-21.1
Code of Ala. 1975, and Act 2013-295 for the purpose of
establishing guidelines and procedures for the uniform implementation of
exemption from property tax on homestead and principal residence
property.
(2) DEFINITIONS - For the
purpose of this rule, the following terms shall have the following meanings:
(a) Homestead - A single family, owner
occupied residential dwelling and the land thereto, not exceeding 160 acres.
For the purpose of this rule the terms homestead and principle residence have
the same meaning.
(b) Principal
Residence - Class III real property, to include land, residential dwelling, and
curtilage, used by the owner as his or her single-family owner-occupied
residence and 160 acres thereto. For the purpose of this rule the terms
homestead and principle residence have the same meaning.
(c) Retired - Any individual who has worked
full time for an extended period, who is not now working due to being totally
and permanently disabled.
(d) Form
PT-PA-1 - This is a Physician's Affidavit of Permanent and Total Disability
that must be used when claiming a homestead or principal residence exemption
base of permanent and total disability when the person claiming the exemption
is not receiving a pension or annuity due to disability.
(3) STATE HOMESTEAD EXEMPTION
(a) Homesteads of residents of this state who
are not 65 years of age or older are exempt from state levied property taxes
not to exceed $4,000 in assessed value.
(b) Homesteads of residents of this state 65
years of age or older or who are retired due to permanent and total disability,
regardless of age, or who are blind as defined in Section
1-1-3,
regardless of age or whether the person is retired, are exempt from all state
levied property taxes. A person qualifying for this exemption based on being
retired due to permanent and total disability will also qualify for a more
complete exemption under 7(b) of this rule.
(c) Proof of the taxpayer being retired
because of total and permanent disability may include the receipt of a pension
or annuity due to disability from a private company or a state or federal
governmental agency or the written certification (Form PT-PA-1) of the taxpayer
being retired because of total and permanent disability from two physicians
licensed to practice medicine in Alabama. Alabama Department of Revenue Form
PT-PA-1 must be used when providing a physician's written certification of
total and permanent disability. On and after August 1, 2013 at least one of the
physicians must be actively providing treatment directly related to the
permanent and total disability of the person seeking the exemption.
(4) COUNTY HOMESTEAD EXEMPTION
(a) Homesteads of any residents of this state
who are not 65 years of age or older are exempt from county levied property
taxes, except countywide and school district property taxes levied for school
purposes, not to exceed $2,000 in assessed value.
1. The governing body of any county,
municipality or other local taxing authority may at any time grant by
resolution or ordinance an increase of the exemption provided in (a) above not
to exceed a maximum exemption of $4,000.
(b) Homesteads of residents of this state 65
years of age or older who have an annual adjusted gross income of less than
$12,000 as reflected on the most recent state income tax return or some other
appropriate evidence, or who are retired due to permanent and total disability,
regardless of age, or who are blind as defined in Section
1-1-3,
regardless of age or whether the person is retired, are exempt from county
levied property taxes, including property taxes levied for school districts,
not to exceed $5,000 in assessed value. A person qualifying for this exemption
based on being retired due to permanent and total disability will also qualify
for a more complete exemption under 7(b) of this rule.
(c) Proof of the taxpayer being retired
because of total and permanent disability may include the receipt of a pension
or annuity due to disability from a private company or a state or federal
governmental agency or the written certification (Form PT-PA-1) of the taxpayer
being retired because of total and permanent disability from two physicians
licensed to practice medicine in Alabama. Alabama Department of Revenue Form
PT-PA-1 must be used when providing a physician's written certification of
total and permanent disability. On and after August 1, 2013 at least one of
these physicians must be actively providing treatment directly related to the
permanent and total disability of the person seeking the exemption.
(5) PRORATED HOMESTEADS
(a) With respect of homesteads situated in
more than one county, the exemption granted in (4) shall be prorated between
the counties in which the homestead is situated in the proration that the area
of the homestead in each county bears to the total area of the homestead
claimed for exemption.
(6) JOINT OWNERSHIP - Property owned by a
person who meets the criteria to claim a homestead or principal residence
exemption shall receive the full exemption, whether the person is a joint owner
or the sole owner. There are no partial homestead or principal residence
exemptions.
(7) PRINCIPAL RESIDENCE
EXEMPTION
(a) The principal residence of any
taxpayer in this state 65 years of age or older having a net annual taxable
income of $12,000 or less, as shown on the taxpayer's and spouse's latest
United States income tax return or some other appropriate evidence is exempt
from all property taxes levied by the state, any county or any
municipality.
(b) The principal
residence of any taxpayer in this state who is permanently and totally disabled
regardless of age or income is exempt from all property taxes levied by the
state, any county or any municipality.
(c) Proof of the taxpayer being totally and
permanently disabled may include the receipt of a pension or annuity due to
disability from a private company or a state or federal governmental agency or
the written certification (Form PT-PA-1) of the taxpayer being retired because
of total and permanent disability from two physicians licensed to practice
medicine in Alabama. Alabama Department of Revenue Form PT-PA-1 must be used
when providing a physician's written certification of total and permanent
disability. On and after August 1, 2013 at least one of these physicians must
be actively providing treatment directly related to the permanent and total
disability of the person seeking the exemption.
(8) APPLICATION PROCESS - To obtain this
homestead exemption, the owner of any homestead property as of the October 1
lien date must successfully apply for the exemption and submit all supporting
documentation to the local tax assessing official in the county where their
homestead property is located. Application may be made between October 1 and
December 31 for the exemption to be applied for the current year or application
may be made at any time during the year for the exemption to be applied for the
following year.
(9) ANNUAL
VERIFICATION - Any person who is permanently and totally disabled and who
qualifies for and has been granted the homestead or principal residence
exemption in Sections
40-9-19 and
40-9-21 shall not be required to annually claim such exemptions after the initial
qualification, but shall be allowed to verify such condition each year by mail
on a form affidavit provided by the county assessing official.
(a) Any person who is 65 years of age or
older and who qualifies for and has been granted the homestead or principal
residence exemption under the income limitations provided in Sections
40-9-19 and
40-9-21 shall after the initial qualification be allowed to verify such eligibility
each year by mail on a form affidavit provided by the county assessing
official.
(10) PENALTY
FOR WILLFULLY PROVIDING FALSE INFORMATION - Any person who knowingly and
willfully gives false information for the purpose of claiming a homestead or
principal residence exemption, or for the purpose of assisting another person
in claiming a homestead or principal residence exemption, shall be ordered to
pay twice the amount of any ad valorem tax which would have been due
retroactive for a period of up to 10 years plus interest at a rate of 15
percent per annum from the date the tax would have been due.
(a) The penalties and interest assessed
against any person who obtained an exemption based upon false information or
any person who assisted another in claiming an exemption with false information
shall be paid within thirty days of written demand by the local taxing official
or the department.
(b) If payment
is not made as provided above, the State of Alabama shall bring a civil action
to recover the penalties and interest due. The amount recovered shall be paid
to the local taxing official in the county where the exemption was granted. The
local taxing official shall then distribute the monies on a pro rata basis to
each of the entities which would have received a portion of the assessed ad
valorem tax had the exemption not been granted based upon false
information.
Author: Will Martin
Statutory Authority:
Code of Ala.
1975, §§4 0-9-19, 4 0-19-21,
40-9-21.1,
Act 2013-295.
