General Provisions.

Ala. Code tit. 40, ch. 9, art. 1

in effect

Ala. Code § 40-9-1 Exemption of Persons and Property from Ad Valorem Taxation.

40-9-1. Exemption of Persons and Property from Ad Valorem Taxation. The following property and persons shall be exempt from ad valorem taxation and none other: (1) All bonds of the United States and this state and all county and municipal bonds issued by counties and municipalities in this state, all property, real and personal, of the United States and this state and of county and municipal corporations in this state; all cemeteries, all property, real and personal, used exclusively for religious worship, for schools or for purposes purely charitable; provided, that property, real or personal, owned by any educational, religious, or charitable institution, society or corporation let for rent or hire or for use for business purposes shall not be exempt from taxation, notwithstanding that the income from such property shall be used exclusively for education, religious, or charitable purposes; all mortgages, together with the notes, debts, and credits secured thereby on real and personal property situated in this state, which mortgages have been filed for record and the privilege tax paid thereon; all security agreements and security interests under the Uniform Commercial Code, together with the notes, debts, and credits secured thereby; all money on deposit in any bank or banking institution and all other solvent credits; and all warrants issued by county boards of education and city boards of education for the purpose of erecting, repairing, or furnishing school buildings, or for other school purposes. (2) All property, real or personal, used exclusively for hospital purposes, to the amount of seventy-five thousand dollars ($75,000), where such hospitals maintain wards for charity patients or give treatment to such patients; provided, that the treatment of charity patients constitutes at least 15 percent of the business of such hospitals; provided further, that such hospital need not be assessed for taxation if the owner or manager shall file with the county tax assessor wherein such hospital is located within the time allowed for assessing the property for taxation a certificate that such hospital has done 15 percent charity work in the preceding tax year; and further provided, that such hospital through its owner or manager shall have until the expiration of the preceding tax year to class its work and ascertain whether or not such hospital has done 15 percent of its treatment of patients as charity work. (3) The shares of the capital stock of any corporation owning and operating a hospital, to the extent of seventy-five thousand dollars ($75,000) in value; provided, that the corporation maintains wards for charity patients and gives treatment to such patients, which treatment constitutes at least 15 percent of the business of the hospital of the corporation; provided, that the total exemption granted to any such corporation shall not exceed seventy-five thousand dollars ($75,000), taking into consideration its real and personal property and the value of its shares of capital stock. (4) All property owned by the American Legion or by Veterans of Foreign Wars or by the Disabled American Veterans, or any post thereof; provided, that such property is used and occupied exclusively by the organization. (5) All the property of literary and scientific institutions and literary societies, when employed or used in the regular business of the institutions. (6) The libraries of ministers of the gospel, all libraries other than those of a professional character and all religious books kept for sale by ministers of the gospel and colporteurs. (7) The property of individuals who are deaf, hard of hearing, or insane to the extent of three thousand dollars ($3,000) and the property of blind individuals to the extent of twelve thousand dollars ($12,000). (8) All family portraits. (9) All cotton, livestock, or agricultural products that have been raised or grown in the State of Alabama and remain in the hands of the producer thereof, or his or her landlord, or in the hands of a cooperative association for all time, and for a period of one year in the hands of the purchaser or the manufacturer. (10) All cotton, wherever grown, stored in licensed warehouses in the State of Alabama for a period not exceeding 12 months. (11) Provisions and supplies on hand for the current year for the use of the family and the making of crops; all wearing apparel; farming tools; tools and implements of mechanics to the value of two hundred dollars ($200); all livestock, including mules, studs, jacks and jennets, cattle, horses, cows, calves, hogs, sheep, and goats; and household and kitchen furniture and one sewing machine. (12) No license or taxation of any character, except franchise taxes provided by Section 229 of the Constitution of Alabama of 2022, shall be collected or required to be paid to the state or any county or municipality therein by any state or county fair, agricultural association, or stock, kennel, or poultry show. Athletic stadiums owned and controlled by universities, schools, or colleges and which are used exclusively for the purpose of promoting intercollegiate or interschool athletics; provided, that the revenue received from athletic stadiums, when admission is charged, shall be used for the benefit of athletic associations of such universities, colleges, or schools. Nothing contained in this subdivision shall be construed to prohibit any municipality, county, or state from imposing any license tax upon or for the privilege of engaging in the business of supplying services for hire or reward or selling commodities other than livestock, farm products, or farm implements or conducting or operating devices or games of skill or amusements or other games or devices, or conducting or operating shows, displays or exhibits other than shows, displays or exhibits of agricultural implements, farm products, livestock, and athletic prowess. (13) All material, including, without limitation, coke, to be compounded or further manufactured, when stocked at any plant or furnace for manufacturing purposes in Alabama. (14) All articles manufactured in Alabama, including pig iron, in the hands of the producer or manufacturer thereof, for 12 months after its production or manufacture. (15) All property, both real and personal, owned by any unit or organization of the Alabama National Guard officially recognized as such by the federal government and organized and maintained by the state, and all property owned by shares and used exclusively by and kept exclusively in the possession of any such unit or organization of the Alabama National Guard, the annual rent or hire of which is not in excess of the annual state, county, and municipal taxes on the property shall be exempt from taxation by the state, and the county and municipality in which the same may be situated. (16) All poultry. (17) The property of all incompetent veterans to the value of three thousand dollars ($3,000). (18) The following items of personal property when owned by individuals for personal use in the home or usually kept at the home of the owner and not carried as stocks of merchandise, namely: Libraries; phonographs; pianos and other musical instruments; paintings; precious stones, jewelry, plate silverware, ornaments, and articles of taste; watches and clocks; wagons, buggies, bicycles, guns, pistols, canes, golf sticks, golf bags, and sporting goods; money hoarded; radios; mechanical and electrical refrigerators; and electrical appliances. (19) All property owned by the Benevolent and Protective Order of Elks, Fraternal Order of Police, Fraternal Order of Eagles, or Loyal Order of Moose, or lodge thereof; provided, that such property is used and occupied exclusively by such organization. (20) All devices, facilities, or structures, and all identifiable components thereof or materials for use therein, acquired or constructed primarily for the control, reduction, or elimination of air or water pollution. (21) Tobacco leaf stored in hogsheads. (22) All farm tractors, as that term is defined in Section 32-1-1.1; and all farming implements, as that term is used in Section 40-11-1(b)(5), when used exclusively in connection with agricultural property as defined in Section 40-8-1(b)(1). (23) All grain bins used exclusively for the purpose of storing, holding, drying, preserving, or otherwise preparing a grain, as defined in Section 2-31-1, for market. For purposes of this chapter, “grain bin” means a structure and its component parts. (24) All stocks of goods, wares, and merchandise described in Section 40-11-1(b)(4). (25) All aircraft, replacement parts, components, systems, supplies, and sundries affixed or used on the aircraft, and ground support equipment and vehicles used by or for the aircraft, when used by a certificated or licensed air carrier with a hub operation within this state, for use in conducting intrastate, interstate, or foreign commerce for transporting people or property by air. For the purpose of this subdivision, the words “hub operation” within this state shall be construed to have all of the following criteria: a. There originates from the location 15 or more flight departures and five or more different first-stop destinations five days per week for six or more months during the calendar year. b. Passengers or property or both are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier. (26) All property described in 12 U.S.C. § 1701q, commonly known as HUD 202 property, is hereby exempt from any and all ad valorem taxes. (27) All vessels and equipment thereon, used predominantly in the business of commercial fishing, as defined in Section 40-23-1, by the owners thereof. (28)a. The tangible personal property owned by a business and reported in accordance with Article 1 of Chapter 7 to the extent of one hundred thousand dollars ($100,000) in market value is exempt from the state levied ad valorem tax. b. Any county or municipality, by resolution or ordinance, may adopt the exemption provided in paragraph a. for county or municipal ad valorem taxes levied on tangible personal property. The ordinance or resolution must be adopted at least 90 days prior to October 1 of the electing year. (Acts 1935, No. 194, p. 256; Acts 1936-37, Ex. Sess., No. 84, p. 95; Acts 1936-37, Ex. Sess., No. 177, p. 208; Code 1940, T. 51, §2; Acts 1947, No. 639, p. 491; Acts 1951, No. 953, p. 1626; Acts 1957, No. 115, p. 160; Acts 1963, No. 519, p. 1107, §1; Acts 1965, No. 549, p. 811; Acts 1966, Ex. Sess., No. 230, p. 351; Acts 1969, No. 1137, p. 2123; Acts 1973, No. 490, p. 714; Acts 1973, No. 1167, p. 1960; Acts 1975, No. 1048, p. 2103, §1; Acts 1978, No. 672, p. 967; Acts 1978, 2nd Ex. Sess., No. 47, p. 1729; Acts 1986, No. 86-214, p. 282, §3; Acts 1989, No. 89-830, p. 1661; Acts 1989, No. 89-914, p. 1809; Acts 1990, No. 90-533, p. 832; Act 2022-295 §1; Act 2022-199 §1; Act 2022-53, §4; Act 2025-344, §1.)

Ala. Code § 40-9-1.1 Stringfellow Memorial Hospital.

40-9-1.1. Stringfellow Memorial Hospital. (a) The board of trustees of the Susie Parker Stringfellow Memorial Hospital established and created under the last will and testament of Susie P. Stringfellow, deceased, and Stringfellow Memorial Hospital Non-Profit Realty Company, a nonprofit corporation, and all real and personal property of said board of trustees or said nonprofit corporation shall be exempt from the payment of any and all state, county and municipal ad valorem taxes. (b) Any ad valorem taxes which were, are or may be collected subsequent to May 4, 1982, as the result of any assessment against the board of trustees of the Susie Parker Stringfellow Memorial Hospital established and created under the last will and testament of Susie P. Stringfellow, deceased, or Stringfellow Memorial Hospital Non-Profit Realty Company, a nonprofit corporation, or any real or personal property of said board of trustees or said nonprofit corporation, will be remitted to the entity which paid them; and no action or proceeding against said board of trustees or said nonprofit corporation may be instituted after such date by the State of Alabama or any county or municipality thereof or any person acting on behalf of any thereof for the collection or enforcement of any such ad valorem tax. (Acts 1982, No. 82-496, p. 824, §§1, 2.)

Ala. Code § 40-9-1.2 Alabama Eye Bank.

40-9-1.2. Alabama Eye Bank. The Alabama Eye Bank is exempted from paying any state, county, and municipal sales and use taxes until September 30, 2024. (Act 2019-479, §1.)

Ala. Code § 40-9-2 Claim of Exemption of Homestead and Household and Kitchen Furniture in Certain Counties.

40-9-2. Claim of Exemption of Homestead and Household and Kitchen Furniture in Certain Counties. Any person who is entitled to a homestead exemption under the provisions of Section 84 of Title 51 of the 1940 Code of Alabama, as amended, and who is also entitled to an exemption of household and kitchen furniture under the provisions of subdivision (11) of Section 40-9-1, shall not be required to claim annually the said personal property exemption. Any such person is authorized to make a claim of said personal property prior to January 1 of any tax year; and if said claim is granted by the tax assessor, it shall be unnecessary to repeat the claim for subsequent tax years so long as such person is entitled to an exemption of such household and kitchen furniture; provided, that such claimed exemption shall not inure to the benefit of the grantee or successor of such person. It is the intent that the grantee or successor is required to make his own claim for such personal property exemption. In the event that any said household and kitchen furniture that has been previously claimed and allowed as exempt shall be or become for any tax year no longer exempt, the person required to pay the tax thereon shall notify the tax assessor prior to January 1 of the tax year in which such property becomes subject to tax of the fact that such property is no longer exempt; and the tax assessor shall thereupon list such property for taxation. Any household and kitchen furniture that is legally claimed and allowed as exempt under this section or which shall become subject to tax after having been legally claimed and allowed as exempt or which is subject to taxation may be assessed as an escape for a period not exceeding five years and, in addition to all other penalties, fees, charges, taxes and interest allowed by law, shall bear a penalty of 15 percent of the taxes due. The applicability of the provisions of this section shall be limited to persons who are entitled to a homestead exemption under said Section 84 of Title 51 of the 1940 Code of Alabama, as amended, and who are, in addition to said homestead exemption, entitled to an exemption of household and kitchen furniture under the provisions of subdivision (11) of Section 40-9-1. (Acts 1949, No. 225, p. 323.)

Ala. Code § 40-9-3 Peanuts and Pecans Stored in Licensed Warehouses.

40-9-3. Peanuts and Pecans Stored in Licensed Warehouses. In addition to the persons and property exempt from ad valorem taxation as prescribed in Section 40-9-1, the following property shall also be exempt from ad valorem taxation: All peanuts and pecans, wherever grown, stored in licensed warehouses in the State of Alabama for a period not exceeding 12 months. (Acts 1965, No. 457, p. 659.)

Ala. Code § 40-9-4 Products or Materials Used in Textile Manufacture.

40-9-4. Products or Materials Used in Textile Manufacture. In addition to the persons and property exempt from ad valorem taxation as prescribed in Section 40-9-1, the following properties shall also be exempt from ad valorem taxation: All products or materials, including natural and man-made fibers and cloth, when stored by a textile manufacturer or processor for the purpose of using such products or materials in such a way that they become a part of the finished product of such plant. (Acts 1971, No. 2405, p. 3838.)

Ala. Code § 40-9-5 Manufacturers of Calcium Cyanamide, Aluminum or Aluminum Products.

40-9-5. Manufacturers of Calcium Cyanamide, Aluminum or Aluminum Products. All factories and manufacture plants manufacturing calcium cyanamide (lime nitrogen), aluminum or aluminum products shall be exempted from state, county and municipal taxation for 10 years after the beginning of the construction of such plant or factory. The exemption provided herein shall apply solely to the factory or plant and to the personal property used therein or connected therewith in the manufacturing of said articles, but shall not apply to the land upon which such factory or plant is located. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §10.)

Ala. Code § 40-9-6 Personal Property Stored for Shipment Outside of State.

40-9-6. Personal Property Stored for Shipment Outside of State. (a) In addition to the persons and property exempt from ad valorem taxation as prescribed in Section 40-9-1, the following property shall also be exempt from state, county and municipal ad valorem taxation and shall be deemed to have acquired no situs in this state for purposes of ad valorem taxation: All personal property which is consigned to or stored in a public or private warehouse or other storage facility for the purpose of shipment to a destination outside this state, whether final destination is specified when transportation begins or afterwards, for a period not exceeding 36 months following such consignment or storage. Such property shall not be deprived of such exemption because while in the warehouse or storage facility the property is assembled, disassembled, bound, joined, divided, cut, broken in bulk, labeled, relabeled, repackaged or otherwise processed or fabricated. No exemptions shall be allowed under this section for any such property which was exempt from ad valorem taxation pursuant to this section in any prior exemption period. (b) It is hereby declared to be the policy of this state, through the exemption of the aforementioned property from ad valorem taxation, to encourage the development of the State of Alabama as a distribution center. (c) All property claimed to be exempt under this section shall be designated “in transit” upon the books and records of the warehouse or storage area wherein the same is located. The records shall include a full, true and correct inventory of all such property together with the date of receipt or completion of process or manufacture, date of withdrawal, point of origin and, if known, the point of ultimate destination of the property. Such books and records shall at all times be open to inspection of all taxing authorities of this state and any political subdivisions thereof. (Acts 1975, No. 788, p. 1574, §§1-3.)

Ala. Code § 40-9-7 Personal Property Held by Warehouseman for Distribution.

40-9-7. Personal Property Held by Warehouseman for Distribution. (a) Personal property manufactured, compounded or processed remaining the property of the manufacturer, compounder or processor, held for him by a licensed public warehouseman for distribution shall be exempted from ad valorem taxation by the State of Alabama and the counties and municipalities of the state. (b) A warehouseman holding personal property exempted by this section shall keep records of the receipt and disposal of all such property which shall be open to inspection during business hours by any duly constituted official responsible for the administration of any ad valorem tax law. The license of any warehouseman who fails to keep the records required by this section may be revoked by the Commissioner of Revenue after due notice and a hearing if requested by the warehouseman. (c) The Commissioner of Revenue shall issue such rules and regulations as he deems necessary or appropriate to the administration of this section. (Acts 1975, No. 838, p. 1673, §§1-3.)

Ala. Code § 40-9-8 Artesian Wells Leased to Municipalities.

40-9-8. Artesian Wells Leased to Municipalities. The capital stock and physical property of all corporations and the physical property of any person, which said capital stock and physical property consists entirely of an artesian well or wells, and equipment pertaining thereto, which well or wells are leased to any municipality of this state under a lease, sale, contract or option agreement to purchase, shall, during the life of such lease, sale, contract or option agreement, be exempt from ad valorem taxation so long as such well or wells are operated exclusively by such city or town; provided, that this section shall apply only to corporations or persons under contract with not more than one municipality. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §11.)

Ala. Code § 40-9-9 Y.m.c.a.

40-9-9. Y.m.c.a. All Young Men’s Christian Associations and all real and personal property of all Young Men’s Christian Associations, and of any branch or department of same heretofore or hereafter organized and existing in good faith in the State of Alabama, for other than pecuniary gain and not for individual profit, when such real or personal property shall be used by such associations, their branches or departments, in and about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives and policies of such associations, their branches or departments, in any city or county of the State of Alabama, are exempt from the payment of any and all state, county and municipal taxes, licenses, fees and charges of any nature whatsoever, including any privilege or excise tax heretofore or hereafter levied by the State of Alabama or any county or municipality thereof. The receipt, assessment or collection of any fee, admission, service charge, rent, dues or any other item or charge by any such association, its branches or departments from any person, firm or corporation for any service rendered by any such association, its branches or departments, or for the use or occupancy of any real or personal property of any such association, its branches or departments, in or about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives and policies of any such association, its branches or departments shall not be held or construed by any court, agency, officer or commission of the State of Alabama or any county or municipality thereof to constitute pecuniary gain or individual profit by any such association, its branches or departments, or the doing of business in such a manner as to prejudice or defeat, in any manner, the right and privilege of any such association, its branches or departments to claim or rely upon or receive the exemption of such association, its branches or departments and of all real and personal property thereof from taxation, as herein provided. (Acts 1919, No. 180, p. 176; Code 1923, §7192; Code 1940, T. 51, §12; Acts 1957, No. 753, p. 1188.)

Ala. Code § 40-9-10 Y.w.c.a.

40-9-10. Y.w.c.a. All Young Women’s Christian Associations, and all real and personal property of all Young Women’s Christian Associations, and of any branch or department of same heretofore or hereafter organized and existing in good faith in the State of Alabama, for other than pecuniary gain and not for individual profit, when such real or personal property shall be used by such associations, their branches or departments in and about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives and policies of such associations, their branches or departments, in any city or county of the State of Alabama, are exempt from the payment of any and all state, county and municipal taxes, licenses, fees and charges of any nature whatsoever, including any privilege or excise tax heretofore or hereafter levied by the State of Alabama or any county or municipality thereof. The receipt, assessment or collection of any fee, admission, service charge, rent, dues or any other item or charge by any such association, its branches or departments, from any person, firm or corporation for any service rendered by any such association, its branches or departments, or for the use or occupancy of any real or personal property of any such association, its branches or departments, in or about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives and policies of any such association, its branches or departments shall not be held or construed by any court, agency, officer or commission of the State of Alabama or any county or municipality thereof to constitute pecuniary gain or individual profit by any such association, its branches or departments, or the doing of business in such a manner as to prejudice or defeat, in any manner, the right and privilege of any such association, its branches or departments to claim or rely upon or receive the exemption of such association, its branches or departments and of all real and personal property thereof from taxation, as herein provided. (Acts 1959, 1st Ex. Sess., No. 73, p. 125.)

Ala. Code § 40-9-11 Y.w.c.o.

40-9-11. Y.w.c.o. All Young Women’s Christian Organizations, and all real and personal property of all Young Women’s Christian Organizations, and of any branch or department of same heretofore or hereafter organized and existing in good faith in the State of Alabama, for other than pecuniary gain and not for individual profit, when such real or personal property shall be used by such organizations, their branches or departments in and about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives and policies of such organizations, their branches or departments, in any city or county of the State of Alabama, are exempt from the payment of any and all state, county and municipal taxes, licenses, fees and charges of any nature whatsoever, including any privilege or excise tax heretofore or hereafter levied by the State of Alabama or any county or municipality thereof. The receipt, assessment or collection of any fee, admission, service charge, rent, dues or any other item or charge by any such organization, its branches or departments from any person, firm or corporation for any service rendered by any such organization, its branches or departments, or for the use or occupancy of any real or personal property of any such organization, its branches or departments, in or about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives and policies of any such organization, its branches or departments shall not be held or construed by any court, agency, officer or commission of the State of Alabama, or any county or municipality thereof to constitute pecuniary gain or individual profit by any such organization, its branches or departments, or the doing of business in such a manner as to prejudice or defeat, in any manner, the right and privilege of any such organization, its branches or departments to claim or rely upon or receive the exemption of such organization, its branches or departments and of all real and personal property thereof from taxation, as herein provided. (Acts 1962, Ex. Sess., No. 156, p. 199.)

Ala. Code § 40-9-12 The March of Dimes, Inc., Y.m.h.a., Seamen’s Home of Mobile, Catholic Maritime Club of Mobile, Inc., Salvation Army, Inc., United Way Organizations, Etc.

40-9-12. The March of Dimes, Inc., Y.m.h.a., Seamen’s Home of Mobile, Catholic Maritime Club of Mobile, Inc., Salvation Army, Inc., United Way Organizations, Etc. (a) The March of Dimes Inc., all Young Men’s Hebrew Associations (Y.M.H.A.) also known as Jewish Community Centers (J.C.C.), and all real and personal property of all Young Men’s Hebrew Associations (Y.M.H.A.) also known as Jewish Community Centers (J.C.C.), the Seamen’s Home of Mobile, incorporated under Act No. 145, Acts of Alabama 1844-45, the Girl Scouts of America and the Boy Scouts of America, and any council, troop or other subdivision thereof now existing or hereafter created and all real and personal property of the Girl Scouts of America and the Boy Scouts of America, and any council, troop or other subdivision thereof now existing or hereafter created, the Catholic Maritime Club of Mobile, Inc., the Knights of Pythias Lodges, the Salvation Army, Inc., the Elks Memorial Center, and all real and personal property of the Salvation Army, Inc., and the Elks Memorial Center, all United Way organizations and United Way member agencies in Alabama, other qualifying united appeal funds and their recipients as provided in subsection (d), and the real and personal property of all United Way organizations and United Way member agencies in Alabama, other qualifying united appeal funds and their recipients as provided in subsection (d), and the Alabama Masonic Home, the American Cancer Society, and all real and personal property of American Cancer Society, the New Hope Industries of Dothan, and all real and personal property of the New Hope Industries of Dothan, the Helping Hand Club of Anniston, and all real and personal property of the Helping Hand Club of Anniston, Childhaven, Inc., and all real and personal property of Childhaven, Inc., Presbyterian Home for Children and all real and personal property of Presbyterian Home for Children, Freewill Baptist Children’s Home and all real and personal property of Freewill Baptist Children’s Home, Methodist Homes for the Aging and all real and personal property of Methodist Homes for the Aging, and United Methodist Children’s Home and all real and personal property of United Methodist Children’s Home, Birmingham Building Trades Towers of Birmingham, Alabama, a nonprofit corporation, the Holy Comforter House, Inc., of Gadsden, Alabama, a nonprofit corporation, the University of Alabama Huntsville Foundation and all real and personal property of the University of Alabama Huntsville Foundation, the Birmingham Football Foundation, Inc., a nonprofit corporation, and all real and personal property of the Birmingham Football Foundation, Inc., and of any branch or department of any of same heretofore or hereafter organized and existing in good faith in the State of Alabama, for other than pecuniary gain and not for individual profit, when such real or personal property shall be used by such associations or nonprofit corporations, their branches or departments in and about the conducting, maintaining, operating and carrying out of the program, work, principles, objectives, and policies of such associations or nonprofit corporations, their branches or departments, in any city or county of the State of Alabama, are exempt from the payment of any and all state, county, and municipal taxes, licenses, fees, and charges of any nature whatsoever, including any privilege or excise tax heretofore or hereafter levied by the State of Alabama or any county or municipality thereof. The receipt, assessment or collection of any fee, admission, service charge, rent, dues, or any other item or charge by any such association or nonprofit corporation, its branches or departments from any person, firm, or corporation for any services rendered by any such association or nonprofit corporation, its branches or departments or for the use or occupancy of any real or personal property of any such association or nonprofit corporation, its branches or departments in or about the conducting, maintaining, operating, and carrying out of the program, work, principles, objectives, and policies of any such association or nonprofit corporation, its branches, or departments shall not be held or construed by any court, agency, officer, or commission of the State of Alabama, or any county or municipality thereof, to constitute pecuniary gain or individual profit by any such association or nonprofit corporation, its branches or departments, or the doing of business in such a manner as to prejudice or defeat, in any manner, the right and privilege of any such association or nonprofit corporation, its branches or departments to claim or rely upon or receive the exemption of such association or nonprofit corporation, its branches or departments and of all real and personal property thereof from taxation, as herein provided. (b) With respect to gasoline, tobacco, playing card tax or any other tax required by law to be prepaid by the retailer, the associations, nonprofit corporations, or organizations exempt under this section shall pay the appropriate tax at the time purchases are made, and the amount of such tax shall be refunded to such associations, nonprofit corporations, or organizations by the Department of Revenue pursuant to the procedures for refunds provided in Chapter 2A of this title. (c) For purposes of this section, the following words and phrases shall have the following meanings: (1) SUPPORTED CHARITY. Any charitable, civic, or eleemosynary institution for which a united appeal fund solicits funds. (2) UNITED APPEAL FUND. Any nonprofit entity that demonstrates to the reasonable satisfaction of the Department of Revenue that it has all of the following characteristics: a. Is an Alabama nonprofit corporation, or another type of legal entity, whether formed in Alabama or in another jurisdiction, which is required by its principal governing documents to be operated as a charity. b. Is one of a class, donations to which are deductible for federal and Alabama income tax purposes under Section 170(c) of the Internal Revenue Code. c. Has as its principal purpose, as stated by its principal governing documents, the raising of funds or the aggregation or consolidation of fund raising efforts, to support other charities which are not themselves united appeal funds, known as supported charities. d. Has been issued a Certificate of Exemption from Alabama sales, use, and lodgings tax prior to July 1, 2017, and has continually maintained the Certificate of Exemption as required by Section 40-9-60. e. With respect to the distribution of funds raised by the united appeal fund, the entity’s principle governing documents must require that no supported charity, as defined in this subsection, will receive de minimis support. (3) UNITED WAY MEMBER AGENCY. Any nonprofit organization that receives funding through the approval of the board of a United Way organization, but only if the nonprofit organization is: a. Accountable to the granting United Way organization for the expenditure of any funds received from such United Way organization. b. Included on a list of such nonprofit organizations to be submitted to the Department of Revenue under subsection (e) by all United Way organizations on or before a date provided for in a rule of the Department of Revenue. (4) UNITED WAY ORGANIZATION. Any nonprofit corporation legally authorized and licensed to operate under the name United Way and use the name United Way and the associated logo and trademarks. (d)(1) Each supported charity must be separately identified by name in the principal governing documents of the united appeal fund entity, and by name and federal employer identification number at the request of the Department of Revenue. Each supported charity must agree, in its own principal governing documents, to become or remain a member of the united appeal fund that funded the supported charity. (2) The special rules provided in this subsection shall not apply to any United Way organization or any United Way member agency. (e)(1) Each United Way organization shall provide the Department of Revenue with a list of its constituent United Way member agencies on an annual basis. (2) The Department of Revenue, by rule, shall provide the date on which United Way organizations shall submit the list required by this subsection. (Acts 1961, Ex. Sess., No. 47, p. 1904; Acts 1963, No. 297, p. 768; Acts 1964, 1st Ex. Sess., No. 256, p. 352; Acts 1964, 1st Ex. Sess., No. 259, p. 358; Acts 1965, No. 864, p. 1611; Acts 1966, Ex. Sess., No. 261, p. 403, §1; Acts 1967, No. 761, p. 1616, §1; Acts 1969, No. 1102, p. 2038; Acts 1969, No. 1250, p. 2352, §§1, 2; Acts 1971, No. 1202, p. 2087; Acts 1971, No. 1591, p. 2722; Acts 1971, No. 1944, p. 3140; Acts 1971, No. 2080, p. 3350; Acts 1984, No. 84-664, p. 1331; Acts 1992, No. 92-186, p. 349, §22; Act 2017-149, §2; Act 2021-299, §6; Act 2023-496, §1.)

Ala. Code § 40-9-12.1 United Appeal Fund Organizations and Supported Charities.

40-9-12.1. United Appeal Fund Organizations and Supported Charities. (a) United appeal fund organizations and supported charities that otherwise satisfied the definitions provided under Section 40-9-12(c) as of July 1, 2017, but failed to acquire or maintain their exemption certificates as of July 1, 2017, or lost their exemption certificate due to failure to timely file an informational report as required by Section 40-9-60 and rules adopted thereunder, are allowed a grace period through September 30, 2018, within which to obtain the certificate of exemption required under Section 40-9-12(c)(2) d. and to come into compliance with the informational reporting requirements of Section 40-9-60. (b) In order for a united appeal fund to be eligible for the grace period provided in subsection (a), the united appeal fund, as of July 1, 2017, must have met the following requirements in their entirety: (1) Satisfied the definitional requirements imposed by Section 40-9-12(c)(2). (2) Previously held or been eligible to hold a sales and use tax Certificate of Exemption. (3) Provided more than de minimis funding to supported charities. (c) In order for a supported charity to be eligible for the grace period provided in subsection (a), the supported charity, as of July 1, 2017, must have met the following requirements in their entirety: (1) Satisfied the definitional requirement imposed by Section 40-9-12(c)(1). (2) Received more than de minimis funding from a qualified united appeal fund. (d) No refunds shall be issued to such united appeal fund entity or supported charity, as defined in subsection (b) and (c) and those as defined in Section 40-9-12(c), for any purchases or transactions during a time period in which a certificate of exemption was not in effect regardless of whether such united appeal fund or supported charity falls under the provisions of this section. (e) The Department of Revenue may make available to the public a record of statutorily exempt entities that have been issued a certificate of exemption. Such listing shall be limited to the entity name, the date of issuance, and the current status of the certificate as either valid or invalid, including the date such certificate of exemption became invalid. (f) The Department of Revenue may adopt and enforce reasonable rules for the enforcement and administration of this section. (Act 2018-198, §1.)

Ala. Code § 40-9-13 Volunteer Fire Departments, Alabama Society of D.a.r., Annual Shrine Circus, Episcopal Foundation of Jefferson County, Alabama Heart Association and Presbyterian Apartments, Inc.

40-9-13. Volunteer Fire Departments, Alabama Society of D.a.r., Annual Shrine Circus, Episcopal Foundation of Jefferson County, Alabama Heart Association and Presbyterian Apartments, Inc. (a) All volunteer fire departments in this state, and all real and personal property of all volunteer fire departments in this state, the Alabama Society of the Daughters of the American Revolution, and all real and personal property of the Alabama Society of the Daughters of the American Revolution, the Annual Shrine Circus as well as all other charitable Shrine amusement and fund raising events, and all real and personal property of the Annual Shrine Circus, the Episcopal Foundation of Jefferson County, and all real and personal property of the Episcopal Foundation of Jefferson County, the Alabama Heart Association and all real and personal property of the Alabama Heart Association, and the Presbyterian Apartments, Incorporated, and all real and personal property of the Presbyterian Apartments, Incorporated, when such real and personal property shall be used as provided in Section 40-9-12, are exempt from the payment of any and all state, county and municipal taxes, licenses, fees and charges of any nature whatsoever, including any privilege or excise tax heretofore or hereafter levied by the State of Alabama or any county or municipality thereof. (b) All volunteer fire departments in this state, the Alabama Society of the Daughters of the American Revolution, the Annual Shrine Circus as well as all other charitable Shrine amusement and fund raising events, the Episcopal Foundation of Jefferson County, the Alabama Heart Association and the Presbyterian Apartments, Incorporated, shall be subject to all the provisions of Section 40-9-12, as are all other organizations named therein. (Acts 1973, No. 1204, p. 2026; Acts 1984, 1st Ex. Sess., No. 84-739, p. 80.)

Ala. Code § 40-9-14 Property Used for Public Purposes.

40-9-14. Property Used for Public Purposes. Lands in the purchase of which any municipality of the state has invested money pursuant to the terms of a lease sale contract or option agreement shall, during the life of such lease sale contract or option agreement, be exempt from ad valorem taxation so long as said lands are being used by such municipalities for park, municipal or other public purpose, or where the same are contracted for and in the possession of such municipalities with the bona fide intention of being so used. (Acts 1927, No. 121, p. 85; Code 1940, T. 51, §13.)

Ala. Code § 40-9-14.1 Certificates of Exemption to Governmental Entities, Contractors, Etc., for Certain Tax Exempt Projects.

40-9-14.1. Certificates of Exemption to Governmental Entities, Contractors, Etc., for Certain Tax Exempt Projects. (a) For the purposes of this section, the term governmental entity means the State of Alabama and its political subdivisions, including a county, a municipality, an industrial or economic development board or authority, airport authority, and any public water or sewer authority, district, system, or board that otherwise is sales and use tax exempt. A governmental entity shall also include an educational institution of any of the foregoing Alabama political subdivisions including a public college or university, a county or city board of education, and the State Board of Education. (b)(1) The Department of Revenue shall issue a certificate of exemption to the governmental entity for each tax exempt project. (2) The Department of Revenue shall grant a certificate of exemption from state and local sales and use taxes to any contractor licensed by the State Licensing Board for General Contractors, or any subcontractor working under the same contract, for the purchase of building materials, construction materials and supplies, and other tangible personal property that becomes part of the structure that is the subject of a written contract for the construction of a building or other project for and on behalf of a governmental entity which is exempt from the payment of sales and use taxes. (c) The use of a certificate of exemption for the purchase of tangible personal property pursuant to this section shall include only tangible personal property that becomes part of the structure that is the subject of the construction contract. Any contractor or subcontractor purchasing any tangible personal property pursuant to a certificate of exemption shall maintain an accurate cost accounting of the purchase and use of the property in the construction of the project. (d) A contractor who has an exemption from sales and use tax for the purchase of materials to use on a government project shall file, in a manner as prescribed by the department, reports of all exempt purchases. The reports shall be filed as a prerequisite to renewal of a certificate of exemption. (e)(1) The department may assess any contractor or subcontractor with state and local sales or use taxes on any item purchased with a certificate of exemption not properly accounted for and reported as required. (2) Any contractor or subcontractor who intentionally uses a certificate of exemption in violation of this section, in addition to the actual sales or use tax liability due, shall be subject to a civil penalty levied by the department in the amount of not less than two thousand dollars ($2,000) or two times any state and local sales or use tax due for the property and, based on the contractor’s or subcontractor’s willful misuse of the certificate of exemption, may be barred from the use of any certificate of exemption on any project for up to two years. (f) The department may adopt rules to implement this section in order to effectuate the purposes of this section and to provide for accurate accounting and enforcement of this section. (g) In bidding the work on a tax exempt project, the bid form shall provide for an accounting for the tax savings. (h) The intent of this section is to lower the administrative cost for the governmental entity, contractor, and subcontractor for public works projects. It is not the intent of this section to change the basis for determining professional services from fair market value, which may include sales and use taxes. (i)(1) Except as provided for a contract for the construction of a highway, road, or bridge as provided in subdivision (2), this section shall be operative for contracts entered into with governmental entities as defined in subsection (a), not including public water or sewer authorities, districts, systems, or boards that otherwise are sales and use tax exempt, on January 1, 2014, or thereafter, and shall not apply to any contract entered into prior to January 1, 2014. This section shall be operative for contracts entered into with public water or sewer authorities, districts, systems, or boards that otherwise are sales and use tax exempt on January 1, 2019, and thereafter, and shall not apply to any contract entered into with such entities prior to January 1, 2019. In addition, this section shall not apply to any contract change orders or contract extensions, including revised, renegotiated, or altered contracts, when the original contract was entered into prior to January 1, 2014, with a governmental entity. Nor shall this section apply to any contract change orders or contract extensions, including revised, renegotiated, or altered contracts with any public water or sewer authority, district, system, or board that otherwise is sales and use tax exempt, when the original contract was entered into prior to January 1, 2019. (2) This section shall be operative for any contracts with a governmental entity defined in subsection (a) for the construction of a highway, road, or bridge entered into on or after January 1, 2022, and shall not apply to any contracts for the construction of a highway, road, or bridge entered into prior to January 1, 2022, nor shall this section apply to any contract change order or contract extensions, including revised, renegotiated, or altered contracts, when the original contract was entered into prior to January 1, 2022. (j) The Department of Revenue may adopt rules to implement this section. (Act 2013-205, p. 439, §§1, 2; Act 2018-234, §1; Act 2021-298, §2; Act 2021-372, §1.)

Ala. Code § 40-9-14.2 Airport Authorities.

40-9-14.2. Airport Authorities. Notwithstanding any other provision of law, beginning January 1, 2020, all airport authorities established pursuant to Chapter 3 of Title 4 or by local law and contracts entered into by airport authorities on or after January 1, 2020, are exempted from paying any state, county, and municipal sales and use tax. (Act 2021-298, §1.)

Ala. Code § 40-9-14.3 Certificates of Exemption to Statutorily Exempt Entities for Certain Tax Exempt Projects.

40-9-14.3. Certificates of Exemption to Statutorily Exempt Entities for Certain Tax Exempt Projects. (a) For the purposes of this section, the term “statutorily exempt entity” means any person or company, as those terms are defined under Section 40-23-1, that has been granted a statutory exemption from the payment of Alabama sales and use taxes levied pursuant to Chapter 23, including any person or company listed in this article. The term does not include any governmental entity, as defined in Section 40-9-14.1(a). (b)(1) The Department of Revenue shall issue a certificate of exemption to the statutorily exempt entity for each tax exempt project. (2) The Department of Revenue shall grant a certificate of exemption from state and local sales and use taxes to any contractor licensed by the State Licensing Board for General Contractors, or any subcontractor working under the same contract, for the purchase of building materials, construction materials and supplies, and other tangible personal property that becomes part of the structure that is the subject of a written contract for the construction of a building or other project for and on behalf of a statutorily exempt entity that is exempt from the payment of sales and use taxes. (c) The use of a certificate of exemption for the purchase of tangible personal property pursuant to this section shall include only tangible personal property that becomes part of the structure that is the subject of the construction contract. Any contractor or subcontractor purchasing any tangible personal property pursuant to a certificate of exemption shall maintain an accurate cost accounting of the purchase and use of the property in the construction of the project. (d) A contractor who has an exemption from sales and use tax for the purchase of materials to use on a statutorily exempt entity project shall file, in a manner as prescribed by the department, reports of all exempt purchases. The reports shall be filed as a prerequisite to renewal of a certificate of exemption. (e)(1) The department may assess any contractor or subcontractor with state and local sales or use taxes on any item purchased with a certificate of exemption not properly accounted for and reported as required. (2) Any contractor or subcontractor who intentionally uses a certificate of exemption in violation of this section, in addition to the actual sales or use tax liability due, shall be subject to a civil penalty levied by the department in the amount of two times any state and local sales or use tax due for the property but not less than two thousand dollars ($2,000) and, based on the contractor’s or subcontractor’s willful misuse of the certificate of exemption, may be barred from the use of any certificate of exemption on any project for up to two years. (f) The department may adopt rules to implement this section in order to effectuate the purposes of this section and to provide for accurate accounting and enforcement of this section. (g) In bidding the work on a tax exempt project, the bid form shall provide for an accounting for the tax savings. (h) The intent of this section is to lower the administrative cost for the statutorily exempt entity, contractor, and subcontractor for construction projects on behalf of a statutorily exempt entity. It is not the intent of this section to change the basis for determining professional services from fair market value, which may include sales and use taxes. (i) This section shall be operative for any contracts with a statutorily exempt entity entered into on or after January 1, 2024, and shall not apply to any contracts entered into prior to January 1, 2024, nor shall this section apply to any contract change order or contract extensions, including revised, renegotiated, or altered contracts, when the original contract was entered into prior to January 1, 2024. EndFragment (Act 2023-526, §1.)

Ala. Code § 40-9-15 Alabama State Fair and Exhibit Association.

40-9-15. Alabama State Fair and Exhibit Association. The Alabama State Fair and Exhibit Association and all persons, firms, or corporations who may conduct business with said association on its fairgrounds in Jefferson County during the annual fairs of said association are exempt from the payment of all state, county and municipal taxes and licenses. (Code 1907, §2072; Code 1923, §3028; Code 1940, T. 51, §14.)

Ala. Code § 40-9-16 Property of Corporation or Association Formed for Social or Literary Advancement and Used in Connection with College or University.

40-9-16. Property of Corporation or Association Formed for Social or Literary Advancement and Used in Connection with College or University. The property of corporations or associations formed and organized in good faith for the social or literary advancement of their members and not for pecuniary purposes nor for individual profit and used as an adjunct of or in connection with any college or university and approved by the governing body of said college or university in this state shall be exempt from all state, county and municipal taxation, but if used for any other purpose or not as an adjunct of or in connection with any college or university it shall not be so exempt. (Acts 1945, No. 127, p. 115.)

Ala. Code § 40-9-17 Property Owned and Used or Held by Colleges for Certain Purposes.

40-9-17. Property Owned and Used or Held by Colleges for Certain Purposes. All property owned and used by a college for the purpose of housing students, members of the faculty or other employees of the college is exempt from taxation. All property owned by a college and held for the bona fide purpose of being used for enlargement of a campus or for the development of a new campus is exempt from taxation. (Acts 1950, 5th Ex. Sess., No. 40, p. 85.)

Ala. Code § 40-9-18 Property of Corporation Organized for Purpose of Aiding Retired Teachers, Etc.

40-9-18. Property of Corporation Organized for Purpose of Aiding Retired Teachers, Etc. (a) There shall be exempted from any and all state, county and municipal taxes, licenses, fees and charges of any nature whatsoever on all real and personal property of any nonprofit membership corporation: (1) Which is organized under Alabama law as a benevolent society for the purpose of aiding and benefiting retired teachers and supervisory staff personnel of any one or more public school systems in the state, (2) Which is organized for other than pecuniary gain and not for individual profit, and (3) When such real or personal property is used by such corporation for the occupancy of its members and for professional or social meetings and functions sponsored by such corporation or its members. (b) The clause “for other than pecuniary gain and not for individual profit,” as used in the preceding subsection, shall not include any fee, admission, service charge or dues assessed, charged or collected by any such corporation from any person or persons for any service rendered by such corporation, or for the use or occupancy of any of the real or personal property of such corporation. (Acts 1959, No. 548, p. 1355.)

Ala. Code § 40-9-19 Homesteads.

40-9-19. Homesteads. (a)(1) Homesteads, as defined by the Constitution and laws of Alabama, are exempt from all state ad valorem taxes. In no case shall the exemption apply to more than one person or head of the family, nor shall the exemption exceed $4,000 in assessed value or 160 acres in area for any resident of this state who is not over 65 years of age. (2) The homesteads of residents of this state, over 65 years of age, 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, shall be exempt from all state ad valorem taxes. (3) The state Commissioner of Revenue may define and specify the condition or state of health that makes a person “permanently and totally disabled” and may issue certificates of disability to the person as he or she may find meets such specifications. Any person who is drawing any pension or annuity from the armed services or a company or governmental agency as being permanently and totally disabled shall automatically be granted a certificate of permanent and total disability by the state Commissioner of Revenue. (b) For tax years beginning on and after October 1, 1981, for residents of this state not over 65 years of age, homesteads, as defined by the Constitution and laws of Alabama, are exempt from all ad valorem property taxes levied, except countywide and school district ad valorem taxes levied for school purposes, by any county of this state. In no case shall the exemption apply to more than one person or head of the family, nor shall the exemption exceed $2,000 in assessed value or 160 acres in area for any resident of this state who is not over 65 years of age except as provided in subsection (c). (c) For tax years beginning on and after October 1, 1981, the governing body of any county, municipality, or other local taxing authority may at any time grant by resolution or ordinance an exemption from any levy of ad valorem property taxes levied by such county, municipality, or other local taxing authority on homesteads, as defined by the Constitution and laws of Alabama, of residents of this state not over 65 years of age. In no case shall such exemption allowed in this section apply to more than one person or head of the family, nor shall the exemption, when added to any other homestead exemption applicable to the same ad valorem tax levy, exceed $4,000 in assessed value or 160 acres in area. Any homestead exemption granted pursuant to this subsection (c) may be adjusted, rescinded, or reinstated at any time by resolution or ordinance of the governing body of the county, municipality, or other local taxing authority granting such exemption. Any action authorized by this subsection to be taken by a taxing authority, or the governing body thereof, other than in the case of a municipality, shall be taken by resolution of the governing body of the county in which such taxing authority is located acting on behalf of such taxing authority; provided however, any action authorized by this subsection to be taken by a taxing authority, or the governing body thereof, which action shall affect countywide or district ad valorem taxes levied solely for the support of county or city school districts, shall be taken by resolutions of the governing bodies and boards of the school systems that are recipients of the proceeds of the ad valorem tax so affected by such action. This subsection shall in no way annul or reduce exemptions provided under subsections (a), (b), and (d). (d) 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 exempt from ad valorem property taxes levied by any county of this state, including such taxes levied for school districts. In no case shall the exemption exceed $5,000 in assessed value or 160 acres in area. With respect to homesteads situated in more than one county, the exemption shall be prorated between the counties in which the homestead is situated in the proportion that the area of the homestead in each county bears to the total area of the homestead claimed for exemption. The Department of Revenue, by rule, may define and specify the condition or state of health that makes a person “permanently and totally disabled” and may issue certificates of disability to any person that meets such specifications. Any person who is drawing any pension or annuity from the armed services, a private company, or any governmental agency because he or she is permanently and totally disabled shall automatically be granted a certificate of permanent and total disability by the Department of Revenue. (e) The grant of any homestead exemption provided under this section shall not be allowed if such grant shall prevent the payment of any bonded indebtedness secured by any tax to which the homestead exemption would apply. (f) Any homestead exemption under this section or Section 40-9-21 shall not be affected during any period the homestead is being repaired after being damaged by a natural disaster such as a tornado or hurricane. (Acts 1936-37, Ex. Sess., No. 107, p. 113; Acts 1939, No. 488, p. 702; Code 1940, T. 51, §15; Acts 1971, 1st Ex. Sess., No. 125, p. 207, §1; Acts 1973, No. 1212, p. 2048, §1; Acts 1978, 2nd Ex. Sess., No. 48, p. 1734, §1; Acts 1978, 2nd Ex. Sess., No. 91, p. 1785; Acts 1980, No. 80-731, p. 1476; Acts 1981, No. 81-579, p. 965; Acts 1982, 2nd Ex. Sess., No. 82-789, p. 294, §1; Acts 1986, No. 86-530, p. 1026; Act 2011-710, p. 2192, §1; Act 2012-313, p. 708, §1; Act 2013-295, p. 1003, §2; Act 2019-320, §1.)

Ala. Code § 40-9-19.1 Governing Body of Municipality Authorized to Exempt Homesteads of Certain Residents from Ad Valorem Property Tax Increase Imposed for Public School Purposes.

40-9-19.1. Governing Body of Municipality Authorized to Exempt Homesteads of Certain Residents from Ad Valorem Property Tax Increase Imposed for Public School Purposes. (a) The governing body of any municipality may, upon the request of the board of education of such municipality, grant, by resolution, an exemption in whole or in part from the increased portion of any ad valorem property tax which has been increased pursuant to the procedures specified in paragraph (f) of Amendment No. 373 to the Constitution of Alabama of 1901 for public school purposes, on homesteads of residents of such municipality over 65 years of age, 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. Any homestead exemption granted pursuant to this section may be adjusted, rescinded or reinstated at any time upon the request of the board of education of such municipality by resolution of the governing body of such municipality. Any request made by a board of education regarding an exemption pursuant to this section shall be made by a resolution adopted by such board of education. (b) The provisions of this section shall in no way annul or reduce exemptions provided under any other provisions of the Constitution and laws of Alabama. (Acts 1991, No. 91-563, p. 1043, §§1, 2.)

Ala. Code § 40-9-20 Certain Homes Owned by Veterans or Their Widows.

40-9-20. Certain Homes Owned by Veterans or Their Widows. The home of any veteran which is or was acquired by him pursuant to the provisions of Public Law 702, 80th Congress, as heretofore amended (38 U.S.C.A. 701 and Chapter 12), regardless of its value shall be exempt from all ad valorem taxation so long as the same is owned and occupied as a home by such veteran or his unremarried widow. (Acts 1957, No. 557, p. 776.)

Ala. Code § 40-9-21 Principal Residences and 160 Acres Adjacent Thereto of Permanently and Totally Disabled Persons or Persons 65 Years of Age or Older Having Net Annual Federally Taxable Income of $12,000 or Less.

40-9-21. Principal Residences and 160 Acres Adjacent Thereto of Permanently and Totally Disabled Persons or Persons 65 Years of Age or Older Having Net Annual Federally Taxable Income of $12,000 or Less. (a) In addition to the persons and property exempt from ad valorem taxation as prescribed in Section 40-9-1, the following shall also be exempt from ad valorem taxation: The principal residence and 160 acres adjacent thereto of any person who is permanently and totally disabled or who is 65 years of age or older having a net annual taxable income of twelve thousand dollars ($12,000) or less, as shown on such person’s and spouse’s latest United States income tax return or some other appropriate evidence acceptable to the department. In the event that such person and spouse are not required to file a United States income tax return, then an affidavit indicating that the net taxable income of such person and spouse for the preceding taxable year was twelve thousand dollars ($12,000) or less shall be sufficient proof. Proof of age shall be furnished when the exemption provided herein is claimed. On and after May 22, 2013, if a permanently and totally disabled person does not qualify for the exemption under this section, and has not previously submitted written certification of such permanent and total disability by any two physicians licensed to practice in this state, he or she may submit as proof of permanent and total disability affidavits from two physicians licensed to practice in this state, provided that at least one of these physicians is actively providing treatment directly related to the permanent and total disability of the person seeking the exemption; provided, however, this requirement shall not apply to any person receiving the exemption on May 22, 2013. As provided under this section, any person who is drawing any pension or annuity from the armed services or a company or governmental agency because he or she is permanently and totally disabled shall automatically be granted a certificate of permanent and total disability by the department. In order to qualify for exemption under this section, the property must be a single-family home owned and occupied during the tax year as the principal residence of the person qualifying under this section. (b) The department shall by rule establish the criteria and proof required for an exemption in this section based upon a person being “permanently and totally disabled” and shall issue certificates of disability to any person that meets such criteria and provides the required proof. The rule shall provide that any person who is drawing any pension or annuity from the armed services, a private company, or any governmental agency because he or she is permanently and totally disabled shall automatically be granted a certificate of permanent and total disability by the department. (Acts 1973, No. 1000, p. 1532; Acts 1978, 2nd Ex. Sess., No. 48, p. 1734, §2; Acts 1979, Ex. Sess., No. 79-42, p. 60; Acts 1980, No. 80-731, p. 1476; Act 2012-313, p. 708, §1; Act 2013-295, p. 1003, §2.)

Ala. Code § 40-9-21.1 Verification of Eligibility by Mail for Certain Persons.

40-9-21.1. Verification of Eligibility by Mail for Certain Persons. (a) Any person who qualifies for the homestead exemption in Section 40-9-19 or Section 40-9-21 shall initially claim the exemption in person or by mail on a form affidavit provided by the tax assessing official. The tax assessing official may also elect to establish a process to receive the form affidavit electronically as provided in this section. (b)(1) Any law to the contrary notwithstanding, any person who qualifies for the homestead exemptions in Section 40-9-19(a)(2) or (d) or Section 40-9-21 shall not be required to annually claim the exemptions after the initial qualification, but shall verify eligibility for the exemptions, as required by law, including Section 40-7-2.1, each year thereafter in person or by mail on a form affidavit provided by the tax assessing official. The tax assessing official may also elect to establish a process to receive the form affidavit electronically as provided in this section. (2) Notwithstanding subdivision (1), a veteran of the United States Armed Forces who has been determined to be permanently and totally disabled by the United States Department of Veterans Affairs and who qualifies for a homestead exemption under Section 40-9-19(d) or Section 40-9-21 shall not be required to annually claim the exemption nor verify eligibility for the exemption after the initial qualification. This release from the annual verification requirement shall terminate immediately upon the death of the qualifying, permanently and totally disabled veteran or upon the establishment of a new homestead. (c) Any cost necessary to establish and operate a process to receive the homestead exemption form affidavit electronically, as authorized in this section, shall be paid from the funds available for the cost of equalization of ad valorem taxes as established in Chapter 7. No later than October 1, 2021, the Association of Alabama Tax Administrators shall develop and forward to the Commissioner of the Department of Revenue a form affidavit and procedures, to be used by the tax assessing officials, electing to provide for the acceptance of the form affidavit electronically. The commissioner shall approve and distribute the form affidavit and procedures to all tax assessing officials no later than January 1, 2022. (Acts 1987, No. 87-589, p. 974; Act 2012-313, p. 708, §1; Act 2013-295, p. 1003, §2; Act 2019-320, §1; Act 2021-422, §2; Act 2026-598, §2.)

Ala. Code § 40-9-21.2 Falsely Claiming Homestead Exemption.

40-9-21.2. Falsely Claiming Homestead Exemption. (a) Any person who knowingly and willfully gives false information for the purpose of claiming a homestead exemption, or for the purpose of assisting another person in claiming a homestead exemption, shall be ordered to pay twice the amount of any ad valorem tax which would have been due retroactive for a period of up to 10 years plus interest at a rate of 15 percent per annum from the date the tax would have been due. (b) The penalties and interest assessed against any person who obtained an exemption based upon false information or any person who assisted another in claiming an exemption with false information shall be paid within thirty days of written demand by the local taxing official or the department. If payment is not made as provided herein, the State of Alabama shall bring a civil action to recover the penalties and interest due. The amount recovered shall be paid to the local taxing official in the county where the exemption was granted. The local taxing official shall then distribute the monies on a pro rata basis to each of the entities which would have received a portion of the assessed ad valorem tax had the exemption not been granted based upon false information. (Act 2013-295, p. 1003, §4.)

Ala. Code § 40-9-21.3 Exemption from Homestead Ad Valorem Taxes for Certain Disabled Veterans; Tentative Certificate of Permanent and Total Disability.

40-9-21.3. Exemption from Homestead Ad Valorem Taxes for Certain Disabled Veterans; Tentative Certificate of Permanent and Total Disability. (a) This section shall be known and may be cited as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act. (b) A tax assessing official shall issue a veteran who has received a 100 percent disability rating from the United States Department of Veterans Affairs and who may claim an exemption under Section 40-9-19 or 40-9-21 for permanent and total disability a tentative certificate of permanent and total disability prior to purchasing a homestead upon receiving all of the following: (1) An affidavit on a form supplied by the Department of Revenue that includes all of the following information: a. The name of the disabled veteran and the name of his or her spouse, if applicable. b. Whether the homestead will be jointly owned by the disabled veteran and his or her spouse, if applicable. c. An attestation by the veteran that the homestead is to be occupied as the veteran’s principal place of residence. (2) The purchase agreement for the homestead. (3) Documentation from the United States Department of Veterans Affairs, or its successor agency, indicating that the veteran has a 100 percent service-connected, permanent, and total disability. (c) A tax assessing official shall issue a tentative certificate of permanent and total disability within 20 days of receiving all of the information required pursuant to subsection (b). (d) A tentative certificate of permanent and total disability shall be considered a valid certificate of permanent and total disability pursuant to Sections 40-9-19 and 40-9-21 upon the purchase of a homestead by a veteran. (e) A settlement agent or loan closing officer may not consider ad valorem taxes for a homestead when calculating the debt-to-income ratio of a potential borrower who has provided a tentative certificate of permanent and total disability to the agent or officer. (f) The department shall establish the form of the tentative certificate of permanent and total disability which shall include a section indicating that the disabled veteran, with a 100 percent permanent and total disability rating, is eligible for exemption from ad valorem taxes pursuant to Section 40-9-19 or 40-9-21 on a homestead property. (Act 2026-268, §1.)

Ala. Code § 40-9-22 Nuclear Fuel Assemblies.

40-9-22. Nuclear Fuel Assemblies. All nuclear fuel assemblies, together with the nuclear materials contained therein, and all reprocessed, recycled or residual nuclear fuel by-products, fissionable or otherwise used or useful in the production of electricity by persons regularly engaged in furnishing electricity to any person or persons shall be exempt from state, county and municipal taxes, excises, licenses, fees or other charges of any nature whatsoever. Nuclear fuel assemblies as used herein shall not include permanently installed equipment or structures. It is the intention of the Legislature of Alabama that the exemptions herein provided shall not be repealed or otherwise diminished unless the statute effecting such repeal shall make specific reference to this section and shall clearly demonstrate a legislative intention to repeal or otherwise affect the exemptions provided in this section. (Acts 1971, No. 2488, p. 3984; Acts 1971, 3rd Ex. Sess., No. 332, p. 4619.)

Ala. Code § 40-9-23 Corporations Organized to Establish Regional Mental Health Programs and Facilities.

40-9-23. Corporations Organized to Establish Regional Mental Health Programs and Facilities. All corporations organized for the purpose of establishing regional mental health programs and facilities which are certified or licensed by the State Board of Health under the provisions of Sections 22-50-1 through 22-50-24 shall be exempt from all taxation. (Acts 1971, 2nd Ex. Sess., No. 21, p. 4147.)

Ala. Code § 40-9-24 Property Tax Relief Fund.

40-9-24. Property Tax Relief Fund. There is hereby set up in the Treasury a Property Tax Relief Fund to be used to reimburse the State General Fund, the State Soldiers’ Relief Fund and the Public School Fund by such amounts as are lost to such funds by reason of exemption of homesteads, in whole or in part, from the payment of the state levy of $.25 on each $100 of taxable property for the State General Fund; $.10 on each $100 of taxable property for the State Soldiers’ Relief Fund and $.30 on each $100 of taxable property for the Public School Fund. The Comptroller, with the approval of the Governor, is hereby directed to draw warrants payable out of the Property Tax Relief Fund payable to the State General Fund, the State Soldiers’ Relief Fund and the Public School Fund in amounts sufficient to reimburse each of said funds for revenues lost by the exemption of homesteads, in whole or in part, from state ad valorem taxation. (Acts 1936-37, Ex. Sess., No. 127, p. 142; Code 1940, T. 51, §16; Acts 1943, No. 191, p. 181.)

Ala. Code § 40-9-25 George Lindsey Celebrity Benefit, Inc., Alabama Special Olympics, Inc., Etc.

40-9-25. George Lindsey Celebrity Benefit, Inc., Alabama Special Olympics, Inc., Etc. The George Lindsey Celebrity Benefit, Inc., and the Alabama Special Olympics or any predecessor organizations or entities, are hereby exempt from paying any state, county or municipality sales or use taxes. (Acts 1984, No. 84-187, p. 294.)

Ala. Code § 40-9-25.1 Magic Moments.

40-9-25.1. Magic Moments. Magic Moments, Inc., is exempted from paying any state, county, and municipal sales or use taxes. (Acts 1994, No. 94-212, p. 298, §1.)

Ala. Code § 40-9-25.2 Habitat for Humanity Organizations and West Alabama Youth Services, Inc. (Ways).

40-9-25.2. Habitat for Humanity Organizations and West Alabama Youth Services, Inc. (Ways). Habitat for Humanity Organizations and West Alabama Youth Services, Inc. (WAYS), are exempted from paying state, county, and municipal sales and use taxes and all property owned and used by the organization is exempted from state, county, and local ad valorem taxation. (Acts 1995, No. 95-394, p. 805, §1.)

Ala. Code § 40-9-25.3 Rainbow Omega, Inc.

40-9-25.3. Rainbow Omega, Inc. The Rainbow Omega, Inc., is exempted from paying any state, county, and municipal sales or use taxes. (Acts 1995, No. 95-586, p. 1245, §1.)

Ala. Code § 40-9-25.4 Farley L. Berman Foundation, Inc.

40-9-25.4. Farley L. Berman Foundation, Inc. All property owned by the Farley L. Berman Foundation, Inc., and used by that organization is hereby exempted from any state, county, and local ad valorem taxation. (Acts 1995, No. 95-654, p. 1367, §1.)

Ala. Code § 40-9-25.5 American Bowling Congress.

40-9-25.5. American Bowling Congress. The American Bowling Congress or any predecessor organization or entity is exempted from paying any state, county, and municipal sales or use taxes applicable to its entry fees. (Acts 1995, No. 95-724, p. 1548, §1.)

Ala. Code § 40-9-25.6 Christian Children Homes, Inc.

40-9-25.6. Christian Children Homes, Inc. The Christian Children Homes, Inc., is exempted from paying any state, county, and municipal sales or use taxes. (Acts 1996, No. 96-426, p. 541, §1.)

Ala. Code § 40-9-25.7 Franklin Memorial Clinic, Inc.

40-9-25.7. Franklin Memorial Clinic, Inc. The Franklin Memorial Clinic, Inc., is exempted from paying any municipal gross receipts taxes and municipal business license taxes. (Acts 1996, No. 96-466, p. 580, §1.)

Ala. Code § 40-9-25.8 Birmingham Civil Rights Institute.

40-9-25.8. Birmingham Civil Rights Institute. The Birmingham Civil Rights Institute, Inc., a nonprofit corporation organized under the laws of the State of Alabama, the directors of which are appointed by the City Council of the City of Birmingham, which is sponsored by the City of Birmingham to present exhibits, educational programming, and maintain archives for educational and historical research respecting civil rights and human rights in Alabama, the United States, and the world, is exempted from all state, county, and municipal income, license, and sales and use taxes. (Acts 1996, No. 96-745, p. 1306 §1.)

Ala. Code § 40-9-25.9 Bridge, Inc.

40-9-25.9. Bridge, Inc. The Bridge, Incorporated, is exempted from paying any state, county, and municipal sales and use taxes. (Acts 1997, No. 97-420, p. 709, §1.)

Ala. Code § 40-9-25.10 Anniston Fellowship House, Wings of Life, Jacksonville Christian Outreach Center, Wiregrass Children’s Home, Doda Parade, Lee County Humane Society, and Huntsville Emergency Medical Services.

40-9-25.10. Anniston Fellowship House, Wings of Life, Jacksonville Christian Outreach Center, Wiregrass Children’s Home, Doda Parade, Lee County Humane Society, and Huntsville Emergency Medical Services. The Anniston Fellowship House, Inc., the Wings of Life, Inc., the Jacksonville Christian Outreach Center, Inc., Wiregrass Children’s Home, Inc., DoDa Parade, Lee County Humane Society, and Huntsville Emergency Medical Services, Inc., are exempted from paying any state, county, and municipal sales or use taxes. (Acts 1997, No. 97-709, p. 1460, §1.)

Ala. Code § 40-9-25.11 Little Sisters of the Poor.

40-9-25.11. Little Sisters of the Poor. The Little Sisters of the Poor is exempted from paying any state, county, and municipal sales and use taxes. (Acts 1997, No. 97-943, 1st Ex. Sess., p. 514, §1.)

Ala. Code § 40-9-25.12 Service Guild of Birmingham, Inc., Early Intervention Program.

40-9-25.12. Service Guild of Birmingham, Inc., Early Intervention Program. The Service Guild of Birmingham, Incorporated, Early Intervention Program, is exempted from paying any state, county, and municipal sales and use taxes. (Act 98-380, p. 715, §1.)

Ala. Code § 40-9-25.13 Big Oak Ranch, Inc.

40-9-25.13. Big Oak Ranch, Inc. The Big Oak Ranch, Incorporated, Administrative Office in Springville, Alabama, is exempted from paying or collecting any state, county, and municipal sales and use taxes. (Act 2006-250, §1.)

Ala. Code § 40-9-25.14 Barber Vintage Motorsports Museum.

40-9-25.14. Barber Vintage Motorsports Museum. (a) The Barber Vintage Motorsports Museum, hereinafter referred to as the Barber Museum, is exempted from paying any state, county, and municipal sales and use taxes with respect to tangible personal property purchased solely for display as a museum exhibit primarily within the confines of the museum property. (b) All personal property owned by and all real property leased to the Barber Museum by the City of Birmingham and improvements thereon, at such time as the leased real property may be purchased by the Barber Museum, and all improvements made subsequent to the purchase, are hereby or shall upon their purchase be exempted from any state, county, and local ad valorem taxation. Provided, however, this exemption shall not apply to any portion of the property that is not used in connection with the organization’s museum or motorsports park operations, or that may be sold to any third party, or that may be leased to any third party for any purpose not connected with the museum or motorsports park operations, nor shall it apply to any real property purchased after July 1, 2006, and added to the Barber Museum complex, except as described herein, nor to any other property owned by the Barber Museum. (Act 2006-556, §1.)

Ala. Code § 40-9-25.15 Covington Baptist Association, Inc. - Christian Service Centers.

40-9-25.15. Covington Baptist Association, Inc. - Christian Service Centers. The Christian Service Centers of Covington Baptist Association, Incorporated, are exempted from paying or collecting any state, county, and municipal sales and use taxes. (Act 2006-615, §1.)

Ala. Code § 40-9-25.16 Food Banks.

40-9-25.16. Food Banks. (a) All food banks within the state are hereby exempted from the payment and collection of any state, county and municipal sales and use taxes. (b) As used in this section, food bank shall be defined as any entity located within Alabama that is an affiliated food bank of the America’s Second Harvest national food bank network or their subsidiary distribution organizations. (Act 2007-453, p. 938, §§1, 2.)

Ala. Code § 40-9-25.17 Eagles’ Wings, Inc.

40-9-25.17. Eagles’ Wings, Inc. Eagles’ Wings, Incorporated, is exempted from paying or collecting any state, county, and municipal sales and use taxes. (Act 2010-749, p. 1901, §1.)

Ala. Code § 40-9-25.18 Alabama Marine Corps League.

40-9-25.18. Alabama Marine Corps League. The Alabama Marine Corps League is exempted from paying or collecting any state, county, and municipal sales and use taxes. (Act 2012-513, p. 1529, §1.)

Ala. Code § 40-9-25.19 Lurleen B. Wallace Community College Foundation and Calhoun Community College Foundation.

40-9-25.19. Lurleen B. Wallace Community College Foundation and Calhoun Community College Foundation. (a) All property owned by the Lurleen B. Wallace Community College Foundation and the Calhoun Community College Foundation and used by that organization in furtherance of its charitable purposes is hereby exempted from any state, county, and local ad valorem taxation. (b) All purchases by the Lurleen B. Wallace Community College Foundation and the Calhoun Community College Foundation which are used by that organization in the furtherance of its charitable purpose are hereby exempted from the state, county, and local sales and use taxes. (Act 2013-170, p. 317, §§1, 2.)

Ala. Code § 40-9-25.20 Community Action Association of Alabama.

40-9-25.20. Community Action Association of Alabama. The Community Action Association of Alabama and its member agencies are exempted from paying or collecting any state, county, and municipal sales and use taxes, except this exemption shall not apply to county or municipal sales and use taxes unless approved by resolution of the respective local governing body. (Act 2014-407, p. 1505, §1.)

Ala. Code § 40-9-25.21 Lifesouth Community Blood Centers.

40-9-25.21. Lifesouth Community Blood Centers. LifeSouth Community Blood Centers are exempted from paying or collecting any state, county, and municipal sales and use taxes. (Act 2016-246, §1.)

Ala. Code § 40-9-25.22 Southern Research Institute.

40-9-25.22. Southern Research Institute. (a) The Southern Research Institute is exempted from paying any state, county, and municipal sales and use taxes. (b) The Southern Research Institute shall file an annual informational report in a manner as prescribed by the Department of Revenue. The information on such reports shall be consistent with the information required by the Department of Revenue pursuant to Section 40-9-61 and rules promulgated thereunder. Information provided pursuant to this section is exempted from the confidentiality provisions of Section 40-2A-10, and shall be provided by the Department of Revenue to the Legislative Services Agency, Fiscal Division on an annual basis. (Act 2017-386, §1.)

Ala. Code § 40-9-25.23 Most Worshipful Prince Hall Grand Lodge Free and Accepted Masons of Alabama and the Most Worshipful Grand Lodge F. and A.m. of Alabama.

40-9-25.23. Most Worshipful Prince Hall Grand Lodge Free and Accepted Masons of Alabama and the Most Worshipful Grand Lodge F. and A.m. of Alabama. The Most Worshipful Prince Hall Grand Lodge Free and Accepted Masons of Alabama and the Most Worshipful Grand Lodge F. and A.M. of Alabama are exempted from paying all state, county, and municipal fees and taxes until September 30, 2027, unless extended by an act of the Legislature. (Act 2022-350, §1.)

Ala. Code § 40-9-25.24 Alabama Judicial College Education Fund.

40-9-25.24. Alabama Judicial College Education Fund. (a) The Alabama Judicial College Education Fund is exempt from paying state sales and use taxes. (b) Any county or municipality may exempt this entity from the payment of county or municipal sales and use taxes in accordance with Section 40-23-4.01. (c) The exemption provided by this section is effective September 1, 2026, through August 31, 2031. (Act 2026-269, §2.)

Ala. Code § 40-9-25.25 Precision Ocular.

40-9-25.25. Precision Ocular. (a) For the period commencing on October 1, 2026, and ending on September 30, 2031, unless extended by an act of the Legislature, Precision Ocular is exempt from paying any state sales and use taxes. (b) Precision Ocular may be exempted from paying county and municipal sales and use taxes upon approval of the county or municipality pursuant to Section 40-23-4.01. (Act 2026-576, §1.)

Ala. Code § 40-9-26 Presbyterian Apartments of Birmingham, Inc., Presbyterian Homes of Decatur, Inc., Shoals Presbyterian Apartments, Inc., East Presbyterian Apartments, East Alabama Services for the Elderly, Inc.

40-9-26. Presbyterian Apartments of Birmingham, Inc., Presbyterian Homes of Decatur, Inc., Shoals Presbyterian Apartments, Inc., East Presbyterian Apartments, East Alabama Services for the Elderly, Inc. The Presbyterian Apartments of Birmingham, Inc., the Presbyterian Homes of Decatur, Inc., the Shoals Presbyterian Apartments, Inc., and the Presbyterian Apartments in Northport, Alabama, and the East Alabama Services for the Elderly, Inc., a nonprofit corporation in Lee County, Alabama, the Mayfair Towers Corporation in Huntsville, Alabama or any predecessor organization or entity, are hereby exempt from the payment of all state, county and municipal ad valorem taxation. (Acts 1984, No. 84-611, p. 1251.)

Ala. Code § 40-9-26.1 Birmingham Regional Paratransit Consortium, Inc.

40-9-26.1. Birmingham Regional Paratransit Consortium, Inc. The Birmingham Regional Paratransit Consortium, Inc., doing business as ClasTran, is exempted from paying any state, county, and municipal sales and use taxes until September 30, 2024. (Act 2019-474, §1.)

Ala. Code § 40-9-26.2 Twg 2021 Birmingham Foundation.

40-9-26.2. Twg 2021 Birmingham Foundation. TWG 2021 Birmingham Foundation, an Alabama nonprofit corporation, is exempted from paying or collecting any state, county, and municipal sales, use, and license taxes with respect to the World Games 2022 event to be conducted by the TWG 2021 Birmingham Foundation in Alabama, including, without limitation, taxes with respect to the purchase or use of property by TWG 2021 Birmingham Foundation and the gross proceeds from the sale or use of property by TWG 2021 Birmingham Foundation or admissions to the World Games 2022 event. All property owned by TWG 2021 Birmingham Foundation and used for the World Games 2022 event is exempted from all state, county, and local ad valorem taxes. The exemptions provided in this section shall expire on December 31 of the year following the year the World Games 2022 event has concluded. (Act 2021-170, §1.)

Ala. Code § 40-9-26.3 Victims of Crime and Leniency, Incorporated.

40-9-26.3. Victims of Crime and Leniency, Incorporated. The Victims of Crime and Leniency, Incorporated, is exempted from paying any state, county, and municipal sales and use taxes. (Act 2021-496, §1.)

Ala. Code § 40-9-27 Prescriptions for Vitamins and Supplements Exempt from Sales Taxes.

40-9-27. Prescriptions for Vitamins and Supplements Exempt from Sales Taxes. (a) Any vitamins, minerals and dietary supplements, which are used, sold, furnished, dispensed and prescribed by any physician licensed to practice medicine, chiropractor, orthodontist, and podiatrist in the performance of his professional services shall be exempt from any city, county and state sales tax. This exemption shall apply only to vitamins, minerals, and dietary supplements dispensed by prescription by the professionals listed in this subsection. (b) The exemption provided for in subsection (a) shall be in addition to any and all exemptions from sales tax provided for in Article 1 of Chapter 23 of Title 40, Revenue and Taxation, as last amended. (Acts 1985, p. 960, No. 85-630.)

Ala. Code § 40-9-27.1 Insulin, Insulin Syringes, and Related Items Exempt.

40-9-27.1. Insulin, Insulin Syringes, and Related Items Exempt. In addition to any other exemptions provided by law, any items used for the treatment of diabetes purchased by or on behalf of an individual pursuant to a valid prescription shall be exempt from state, county, and municipal sales and use taxes, including, but not limited, to any of the following: Insulin and insulin syringes, and any equipment, supplies, devices, chemical reagents, and any related items that may be used by a diabetic to treat diabetes or to test or monitor blood or urine. (Act 2012-309, p. 680, §1.)

Ala. Code § 40-9-28 Selma-Dallas County Historic Preservation Society and Valegrande Community Center.

40-9-28. Selma-Dallas County Historic Preservation Society and Valegrande Community Center. All property owned by the Selma-Dallas County Historic Preservation Society and the Valegrande Community Center and used by said organizations is hereby exempted from all state, county or local ad valorem taxation and all state, county or local sales and use taxation. (Acts 1990, No. 90-566, p. 963.)

Ala. Code § 40-9-29 Community Health Systems, Inc. and Walker Regional Medical Center.

40-9-29. Community Health Systems, Inc. and Walker Regional Medical Center. All property owned by Community Health Systems, Inc. and the Walker Regional Medical Center is hereby exempted from any state, county, and local ad valorem taxes. (Acts 1992, No. 92-603, p. 1251, §1.)

Ala. Code § 40-9-30 Durable Medical Equipment; Exemptions from Certain Taxes.

40-9-30. Durable Medical Equipment; Exemptions from Certain Taxes. (a) As used in this section, the term “durable medical equipment” means equipment that can stand repeated use, is used to serve a purpose for medical reasons, and is appropriate and suitable for use in the home. (b) Oxygen or durable medical equipment dispensed under orders from a duly licensed physician by a participating provider to a recipient of benefits under the Medicare program shall be exempt from state and local sales and use taxes. (c) A provider who rents or leases oxygen or durable medical equipment to a recipient of benefits under the Medicare or Medicaid program under orders from a duly licensed physician shall be exempt from all state and local rental and leasing taxes. (d)(1) In addition to any other exemptions provided in subsection (b) or (c), any items used for the treatment of illness or injury or to replace all or part of a limb or internal body part purchased by or on behalf of an individual pursuant to a valid prescription and covered by and billed to Medicare, Medicaid, or a health benefit plan shall be exempt from state, county, and municipal sales, use, and rental and leasing taxes, including, but not limited to, any of the following: Durable medical equipment, including repair parts and the disposable or single patient use supplies required for the use of the equipment; medical oxygen and related equipment and supplies; prosthetic and orthotic devices; and medical supplies, as defined and covered under the Medicare program, including, but not limited to, items such as catheters, catheter supplies, ostomy bags and supplies related to ostomy care, specialized wound care products, and similar items that are covered by and billed to Medicare, Medicaid, or a health benefit plan. (2) Beginning September 1, 2024, any health care provider claiming an exemption pursuant to this subsection shall obtain and maintain a certificate of exemption from the Department of Revenue, in accordance with Section 40-9-60, prior to the purchase and shall provide the certificate to the seller at the time of the purchase. (Acts 1993, No. 93-353, p. 548, §§1-3; Act 2014-453, p. 1685, §1; Act 2024-391, §1.)

Ala. Code § 40-9-31 Sales by Certain Schools or School Sponsored Organizations Exempted from Sales and Use Taxes.

40-9-31. Sales by Certain Schools or School Sponsored Organizations Exempted from Sales and Use Taxes. (a) The taxes imposed pursuant to Chapter 23 of this title, (commencing with Section 40-23-1), and any county and municipal sales and use taxes do not apply to sales by elementary or secondary schools or nonprofit elementary or secondary school-sponsored clubs and organizations or any nonprofit, elementary, or secondary school affiliated groups, such as parent-teacher organizations and booster clubs, whose membership may be composed of individuals other than students, provided the net proceeds from such sales are used solely for the benefit of the elementary or secondary school. Such nontaxable sales shall include sales resulting from agreements or contracts entered into with resident or nonresident organizations to participate in fund-raising campaigns for a percentage of the gross receipts where students act as agents or salesmen for the organizations by selling or taking orders for the sale of tangible personal property, and no one shall be required to pay sales or use taxes on such sales. (b) The Department of Revenue may make any rules and regulations necessary to carry out the intent of this section. (Acts 1996, No. 96-653, p. 1050, §1.)

Ala. Code § 40-9-31.1 Alabama School of Fine Arts Foundation, Inc.; Alabama High School of Mathematics and Science Foundation; Alabama School of Cyber Technology and Engineering Foundation; Alabama School of Healthcare Sciences Foundation.

40-9-31.1. Alabama School of Fine Arts Foundation, Inc.; Alabama High School of Mathematics and Science Foundation; Alabama School of Cyber Technology and Engineering Foundation; Alabama School of Healthcare Sciences Foundation. Notwithstanding any other provision of law, the Alabama School of Fine Arts Foundation, Incorporated, the Alabama High School of Mathematics and Science Foundation, the Alabama School of Cyber Technology and Engineering Foundation, and the Alabama School of Healthcare Sciences Foundation are exempted from paying any state, county, and municipal sales and use taxes. (Act 2021-130, §1; Act 2025-329, §1.)

Ala. Code § 40-9-32 Exemption of Shares in Corporations from Ad Valorem Tax.

40-9-32. Exemption of Shares in Corporations from Ad Valorem Tax. Shares of stock in corporations or associations incorporated under the laws of this state or otherwise shall be exempt from ad valorem taxation in this state. (Act 99-665, 2nd Sp. Sess., p. 131, §8.)

Ala. Code § 40-9-34 Hudson-Alpha Institute for Biotechnology.

40-9-34. Hudson-Alpha Institute for Biotechnology. (a) The following is hereby found and declared by the Legislature of Alabama: (1) The lack of content in natural and bio-science education offered to students in kindergarten through high school is a nationwide problem. (2) Such lack in curricular offerings to students will be detrimental in the long-term to the economy of the state and the welfare of the citizens during the scientific revolution now engulfing the world. (3) The biotechnology institute can provide to education leaders of the distance learning program of the state cutting edge biotechnology curriculum recommendations and content for Alabama high schools, by providing information about cutting edge biotechnology curriculum and content to students in kindergarten through high school pursuant to the distance learning program of the state, the state course of study, and state textbooks. (4) By educating Alabama high school students in the field of biotechnology, such students are more likely to pursue careers in the biological sciences, thereby providing the state with a better educated workforce able to support the growing biotechnology industry, in turn attracting and encouraging biotechnology companies to locate in the state and create additional challenging and rewarding job opportunities for the citizens of the state. (5) The reputation, economic status, and educational system of the state will be further enhanced by the addition of an internationally renowned biotechnology institute that will support internationally recognized scientists and researchers, with a focus on scientific discoveries that are intended, when possible, to be proven in the state and provided by companies in the state to patients suffering from diseases. (6) By establishing a biotechnology campus, the biotechnology institute will be in a better position to join with the economic development leaders of the state to attract biotechnology companies to the campus and to the state, thereby creating additional job opportunities for the citizens of the state. (b) The Hudson-Alpha Institute for Biotechnology, a nonprofit corporation, and any real and personal property owned by the corporation, shall be exempt from the payment of any and all state, county, and municipal taxes, licenses, fees, and charges of any nature whatsoever, including any privilege or excise tax heretofore or hereafter levied by the State of Alabama or any county or municipality thereof. (c)(1) In exchange for the tax exemption granted in subsection (b), beginning October 1, 2008, and for each year thereafter, the Hudson-Alpha Institute for Biotechnology shall make a report to the State Board of Education detailing the curricular content in biotechnology which could enhance the state distance learning program. This subdivision shall not apply in the event that the distance learning program is discontinued, or is no longer in existence. Further, the Hudson-Alpha Institute for Biotechnology shall report annually to the State Board of Education, the State Course of Study Committee, and the State Textbook Committee all new developments in the field of biotechnology which could be integrated into the curriculum for high school courses in science and health. (2) Further, in exchange for the tax exemption granted in subsection (b), the Hudson-Alpha Institute for Biotechnology shall certify to the Legislative Fiscal Office and to the House and Senate education appropriations committees on or before September 30, 2008, that the following levels of investment, employment, and property improvements have been made in the State of Alabama: a. The Hudson-Alpha Institute for Biotechnology has made an investment in the State of Alabama equal to or in excess of fifty million dollars ($50,000,000) in property and equipment. b. The Hudson-Alpha Institute for Biotechnology has equal to or in excess of 100 employees. c. For-profit companies have made property improvements on property in the State of Alabama owned by the Hudson-Alpha Institute for Biotechnology equal to or in excess of five million dollars ($5,000,000). (3) In the event that the Hudson-Alpha Institute for Biotechnology fails to meet the requirements in subdivision (1), all tax exemptions granted in subsection (b) are null and void as of October 1, 2008, and the Hudson-Alpha Institute for Biotechnology shall repay all taxes exempt under subsection (b) that were not otherwise exempt by law, beginning as of the effective date of the exemption until September 30, 2008. The Hudson-Alpha Institute for Biotechnology shall repay the taxes in equal installments each year beginning October 1, 2008, and ending October 1, 2018. (d)(1) Each for-profit entity leasing or otherwise owning property located on property owned by the Hudson-Alpha Institute for Biotechnology shall be subject to sales, use, and ad valorem taxes, and each for-profit entity leasing property located on property owned by the Hudson-Alpha Institute for Biotechnology shall be subject to property tax on the leased property, fixtures, and equipment thereof except as otherwise allowed under Chapter 9B of this title, or any amendment or successor statute thereto. (2) No for-profit entity shall be entitled to an exemption under subsection (b) directly or indirectly, including any property that is contributed to the Hudson-Alpha Institute for Biotechnology by a for-profit entity if the contributing for-profit entity uses that contributed property in its for-profit activities. (Act 2005-305, 1st Sp. Sess., §§2-5; Act 2010-219, p. 362, §1.)

Ala. Code § 40-9-35 Alabama Association of Rescue Squads.

40-9-35. Alabama Association of Rescue Squads. (a) Motor fuels used by vehicles of rescue squads who are members in good standing of the Alabama Association of Rescue Squads in Alabama shall be exempt from all state and local motor fuel taxes. (b) Motor vehicles used by rescue squads who are members in good standing of the Alabama Association of Rescue Squads in Alabama shall be exempt from all tax and motor vehicle license fees. (Act 2009-660, p. 2028, §1.)

Ala. Code § 40-9-36 Volunteer Fire Departments and Fire Protection Districts.

40-9-36. Volunteer Fire Departments and Fire Protection Districts. Vehicles owned and operated by volunteer fire departments and fire protection districts in Alabama shall be exempt from all state and local motor fuel taxes. (Act 2009-717, p. 2115, §1.)

Ala. Code § 40-9-37 Military Death Benefits.

40-9-37. Military Death Benefits. (a) This section shall be known and may be cited as the Jason Barfield Act. (b) Any payment made by the United States Department of Defense as a result of the death of a member of the Armed Forces of the United States who has been killed in action in a United States Department of Defense designated combat zone and was a resident of the State of Alabama at the time of his or her death shall be exempt from Alabama income tax during the taxable year in which the individual is declared deceased by the Armed Forces. Any income earned by the spouse of a member of the Armed Forces of the United States who has been killed in action in a United States Department of Defense designated combat zone shall be exempt from Alabama income tax during the taxable year in which the individual is declared deceased by the Armed Forces. (c) In any case where income tax has been paid upon any income exempt pursuant to subsection (b), the tax monies shall be refunded to the person or personal representative of the person. The refund shall be made by the Department of Revenue. (d) This section shall have retroactive effect to January 1, 2011. (e) The provisions of this section shall be liberally construed to accomplish its purpose and the statute of limitations with respect to refunds of income taxes shall not apply to taxpayers covered by this section. (Act 2012-486, p. 1399, §§1, 2.)

Ala. Code § 40-9-38 Alabama Association of Volunteer Fire Departments, Alabama Association of Rescue Squads, County Volunteer Fire and Rescue Associations, Certain Volunteer Rescue Squads, and Certain Local Fire Districts.

40-9-38. Alabama Association of Volunteer Fire Departments, Alabama Association of Rescue Squads, County Volunteer Fire and Rescue Associations, Certain Volunteer Rescue Squads, and Certain Local Fire Districts. The Alabama Association of Volunteer Fire Departments, county volunteer fire associations, the Alabama Association of Rescue Squads, Incorporated, all volunteer rescue squads that are members of the Alabama Association of Rescue Squads, all county volunteer rescue associations, and all local fire districts that are not under the auspices of their county commission are exempt from any state, county, and local sales and use taxes and ad valorem taxes. (Act 2012-544, p. 1613, §1.)

Ala. Code § 40-9-39 Food Pantries in Talladega County Which Distribute Food for Charitable Purposes.

40-9-39. Food Pantries in Talladega County Which Distribute Food for Charitable Purposes. (a) For the purposes of this section, a food pantry is a charitable, nonprofit organization which collects, purchases, or otherwise accumulates food and food related items for distribution without any charge for charitable purposes. (b) A food pantry in Talladega County is exempt from all state, county, and municipal sales and use taxes on the purchase or distribution of food and food related items for charitable purposes provided the food pantry has been granted status as a tax exempt organization under Section 501(c)(3) of the federal Internal Revenue Code and provided it pays no person any salary or expenses for the performance of any duties related to its charitable operations. (Act 2013-442, p. 1761, §1.)

Ala. Code § 40-9-39.2 Birmingham Regional Paratransit Consortium, Inc. - Exemption from State Gasoline, Motor Fuel Excise Taxes, and Inspection Fees.

40-9-39.2. Birmingham Regional Paratransit Consortium, Inc. - Exemption from State Gasoline, Motor Fuel Excise Taxes, and Inspection Fees. The Birmingham Regional Paratransit Consortium, Inc., doing business as ClasTran, is exempt from state gasoline, motor fuel excise taxes, and inspection fees. The Birmingham Regional Paratransit Consortium, Inc., shall pay the appropriate tax at the time purchases are made, and the amount of tax shall be refunded by the Department of Revenue pursuant to the procedures for refunds provided in Chapter 2A. Any refunds granted pursuant to this exemption shall be subject to the provisions of paragraph (b)(2)a. of Section 40-1-44. (Act 2021-374, §1.)

Ala. Code § 40-9-39.3 Birmingham Holocaust Education Center.

40-9-39.3. Birmingham Holocaust Education Center. (a) The Birmingham Holocaust Education Center is exempt from paying any state, county, and municipal sales and use taxes associated with any and all capital expenditures. (b) The exemption provided pursuant to subsection (a) shall be available until December 31, 2023. (c) The Birmingham Holocaust Education Center shall report annually to the Department of Revenue on the sales for which the exemption is granted. The Department of Revenue shall prescribe the format of such annual report. (Act 2021-374, §2.)

Ala. Code § 40-9-39.4 Specified Community Foundation Entities. (Repealed by Act 2026-510, Effective Jan. 1, 2027)

40-9-39.4. Specified Community Foundation Entities. (Repealed by Act 2026-510, Effective Jan. 1, 2027) THIS SECTION WAS REPEALED BY ACT 2026-510, EFFECTIVE JANUARY 1, 2027. (a) All of the following community foundation entities are exempted from paying any state, county, and municipal sales and use taxes: (1) The Community Foundation of South Alabama. (2) The Community Foundation of West Alabama. (3) The Black Belt Community Foundation. (4) The Community Foundation of Northeast Alabama. (5) The Community Foundation of Greater Birmingham. (6) The Community Foundation of Greater Huntsville. (7) The Community Foundation of Greater Decatur. (8) The Limestone Area Community Foundation. (9) The Central Alabama Community Foundation. (10) The Community Foundation of East Alabama. (11) The Walker Area Community Foundation. (b) Each entity listed in subsection (a) shall file an annual informational report in a manner as prescribed by the Department of Revenue. The information on such reports shall be consistent with the information required by the Department of Revenue pursuant to Section 40-9-61, and rules adopted thereunder. Information provided pursuant to this section is exempted from the confidentiality provisions of Section 40-2A-10, and shall be provided by the Department of Revenue to the Legislative Services Agency, Fiscal Division on an annual basis. (c) The sales and use tax exemption authorized under this section shall be effective January 1, 2022, for the 2022 tax year and shall continue through the 2026 tax year, unless extended by an act of the Legislature. (Act 2021-374, §3.)

Ala. Code § 40-9-39.5 Community Foundations Sales and Use Tax Exemptions.

40-9-39.5. Community Foundations Sales and Use Tax Exemptions. (a) All of the following community foundation entities are exempted from paying any state sales and use taxes: (1) The Black Belt Community Foundation. (2) The Central Alabama Community Foundation. (3) The Community Foundation of Greater Birmingham. (4) The Community Foundation of Greater Decatur. (5) The Community Foundation of Greater Huntsville. (6) The Community Foundation of Northeast Alabama. (7) The Community Foundation of South Alabama. (8) The Community Foundation of West Alabama. (9) The Limestone Area Community Foundation. (10) The Walker Area Community Foundation. (b) Each entity listed in subsection (a) shall file an annual informational report in a manner as prescribed by the Department of Revenue. The information on the reports shall be consistent with the information required by the Department of Revenue pursuant to Section 40-9-61 and rules adopted thereunder. Information provided pursuant to this section is exempted from the confidentiality provisions of Section 40-2A-10 and shall be provided by the Department of Revenue to the Legislative Services Agency, Fiscal Division, on an annual basis. (c) The sales and use tax exemption authorized under this section shall be effective September 1, 2026, and shall continue through August 31, 2031. (d) Any county or municipality may exempt the entities listed in subsection (a) from county or municipal sales and use taxes in accordance with Section 40-23-4.01. (Act 2026-510, §1.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026