Over 65 pay NO property tax in Alabama? Huh? (Birmingham, Section: property taxes, income)

[TootsieWootsie]

Today I met a lady from Birmingham, and she swore up and down that--after 65--NOBODY pays any property tax in Alabama. I have a hard time believing it, but am open to facts. Does anyone on the board know what the property tax laws are there? Is what she said true or not?

[Southlander]

Not true. Depends on the income level, and you have to submit your previous year's tax return. My mom died at age 84 and ALWAYS had to pay property tax, no breaks. But her neighbor, who only had social security for income, paid either nothing or very little.

[Keeper]

Southlander is right, it depends on your income, however property taxes are VERY low in AL compared to many other states. My PT in FLA were close to $2K for a house that was valued at a little over $100K with $25K homestead. My house in AL is the same size as the one in FL with a lot more land and cost 80K my taxes were $160.00 (mol) and I am not 65.

[TootsieWootsie]

Yes, I knew the property tax in Alabama was wonderfully low, but I was kinda shocked when these 2 ladies swore up and down that nobody in Alabama pays property tax over 65...must mean nobody living on a fixed income of Social Security pays property tax. They aren't counting the people with earnings from investments after 65 I see. Thanks for the help!!!!

[southernnaturelover]

My grandfather didn't have to pay property taxes. He wasn't dirt poor, but he wasn't wealthy either. I think he had pension, disability, and social security income. He took early retirement from the paper mill because of a stroke. I now pay about $650 per year in taxes for the same house (he died in '03).

[Keeper]

Here is the real story..

For tax years beginning on and after October 1, 1981, for residents of this state,
over 65 years of age 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 such person is
retired, homesteads, as defined in the Constitution and laws of Alabama, are hereby
exempted from ad valorem property taxes levied by any county of this state, including such taxes levied for school districts.

http://www.ador.state.al.us/advalore...ns/40-9-19.pdf

SNL.. your grandfather had a disability, that is why he didn't have to pay

[southernnaturelover]

Originally Posted by Keeper

SNL.. your grandfather had a disability, that is why he didn't have to pay

Yeah, I think you're right because I know he had more than $12k a year coming in.

[art-teacher]

The below is quoted from this site, which is a county site, so not sure if it applied to ALL owners in the state. I haven't heard anything about it, but then again, I'm not even close to 65.

Homestead Exemption
A homestead exemption is a reduced tax a property owner may be entitled to if he or she owns a single-family residence and occupies it on the first day of the tax year for which they are applying. There are four types of homestead exemption;

1 . Regular Homestead is available to those who own and occupy single family residences and use this property for no other purpose. The amount of this exemption is $4,000 assessed value for state and $2,000 for county.
2. Exemption 2 is for persons over age 65 or totally and permanently disabled whose adjusted gross income is less than $12,000 annually. This is for all state taxes and up to $5,000 assessed value for county.
3. Exemption 3 is for persons over age 65 or who are totally disabled. This exempts all property taxes on homestead if the taxable income is less than $7,500.00.
4. Exemption 4 is for persons over 65, regardless of income. This exemption is for total state taxes and up to $2,000 assessed value for county. You will need proof of age or total and permanent disability and taxable income. Exemptions should be applied for before December 31 each year.