HB394 Summary

• Amends Alabama Code Section 40-9-19 to provide ad valorem tax exemptions for veterans with service-connected total and permanent disabilities and their surviving spouses, excluding school taxes.

• Exemption applies to honorably discharged veterans certified by the U.S. Department of Veterans Affairs as totally and permanently disabled who are permanent residents of Alabama on January 1 of the tax year.

• Surviving spouses of disabled veterans retain the exemption if they hold legal or beneficial title to the homestead, permanently reside there, and do not remarry; exemption transfers to a new residence if the property is sold.

• Surviving spouses of veterans who died from service-connected causes while on active duty are exempt from taxation if the veteran was an Alabama permanent resident on January 1 of the year of death.

• Effective for all tax years beginning October 1, 2011, and becomes operative on the first day of the third month following passage and gubernatorial approval.