As a homeowner, you become entitled to a number of tax privileges ranging from simple deductibles in your mortgage interest to provisions that protect you and your family. Learn all about the homestead exemptions in Randolph County, AL here.
What is a homestead exemption?
The homestead exemption protects a portion of the home’s overall value from property taxes. It covers the primary residence only and cannot be used for investment or vacation properties.
For a homeowner to receive this exemption, they must meet the requirements set by the state. Each state and local government have their own qualifications and procedures so it is best to research about these first.
This exemption, however, cannot prevent or stop a bank from foreclosing on a home if the homeowner is unable to make their mortgage payments.
When filing for a homestead exemption, you have to fulfill the requirements for the specific type you are applying for. Remember, you must apply for exemptions before December 31st to decrease taxes for the following year. Contact the Revenue Commissioner’s Office for more information on the process.
What are the different types of homestead exemptions in Randolph County, AL?
Randolph County offers four different types of homestead exemptions with their own sets of qualifications. First is the regular homestead (H-1), which is available to Alabama homeowners under 65 years of age. This exemption is applicable for single-family, owner-occupied properties and manufactured properties, as well.
The exemption amount is $4,000 in assessed value for state taxes while the exemption value for county taxes is $2,000. To receive the H-1 exemption, you should have been living on the property as of October 1 of the year you are claiming.
If there are any changes to the deed or occupancy of the residence, you need to refile the claim. Any renovations or additions to structures on the property should also be reported to the tax office.
The second claim is the exemption for taxpayers age 65 or older (H-2), which includes those with total disability or blind persons. You can receive exemptions of up to $5,000 in assessed value in both state and county taxes. To be eligible, your adjusted gross income in your most recent Alabama Income Tax Return should be $12,000.
Exemptions for taxpayers age 65 or older H-3 is similar to H-2, but this one is based on the most recent Federal Income Tax Return.
The third is the exemption for taxpayers permanently and totally disabled (H-3). To qualify for this exemption, you need to have a letter stating disability from the Social Security Office or the Veterans Administration. The document must include the month and year the disability began. Statements from two different physicians attesting to your disability are also acceptable.
Lastly, the exemption for taxpayers age 65 or older (H-4) regardless of income offers an exemption of up to $2,000 in the assessed value of county tax. It takes into account the total assessed value of the state’s portion of taxes.
Exemptions for persons over 65 and with disabilities are verified annually in person or by mail. Failure to do so will result in the removal of the exemptions.
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