A bill proposing to expand property tax exemptions to non-remarried widows or widowers of eligible Alabamians was discussed by the Alabama Department of Revenue Ad Valorem Advisory Committee on Monday. House Bill 226, sponsored by Rep. Danny Crawford, would extend the state’s homestead tax exemption to widows or widowers of eligible Alabamians, granted they do not remarry. Some committee members expressed concerns over the implementation of the proposal, particularly in verifying eligibility at the local level.
Crawford explained that the bill aims to provide financial relief to widows or widowers of disabled individuals who may struggle to pay property taxes after their spouse’s passing. However, the Department of Revenue raised concerns about the challenges in verifying tax exemptions at the local level.
Alabama has one of the lowest property tax rates in the nation, second only to Hawaii, and collected approximately $553.8 million in property tax revenue in fiscal year 2023. However, the state also saw a loss of $776,423 in property tax revenue due to exemptions, deductions, and exclusions.
While the bill could potentially decrease property tax revenue and increase costs for the Department of Revenue, Crawford believes that the requirement for a widow or widower’s name to be on the deed of the property should streamline the verification process. Overall, the bill aims to provide financial assistance to eligible widows and widowers while ensuring proper implementation and monitoring of the tax exemptions.
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