AL HB397

Increases the annual adjusted gross income cap for homestead exemption eligibility from $12,000 to $16,000 for residents over 65 years of age

Extends ad valorem property tax exemptions to unremarried widows or widowers of individuals who were exempt at the time of death due to age, disability, or blindness

Unremarried surviving spouses must meet three conditions: the property was the decedent's homestead at death, the survivor's name is on the deed, and the survivor's annual adjusted gross income does not exceed $150,000

Applies to tax years beginning on or after January 1, 2027, with an effective date of June 1, 2026

Amends Sections 40-9-19, 40-9-19.1, and 40-9-21 of the Code of Alabama 1975