The housing market has gone through the roof over the past year. Home sales in hot markets often sell within the first day for prices well above the asking price. Guess what is next? Higher property taxes! Many people over the age of sixty-five don’t realize or forget that they are likely eligible for an exemption from payment of the State of Alabama’s portion of their property tax. Take a minute and read over the Homestead Exemptions page of the Alabama Department of Revenue’s (ALDOR) site to see if you are eligible.
Here are the requirements that you must meet:
- You must be age 65 or older.
- You must own and occupy the single-family residence on which you intend to claim the exemption.
- You must apply for the exemption in advance…by December 31 for the next calendar year.
Get started by contacting your local county office or courthouse. They can tell you about the process for your county.
If you are disabled or blind, you may also qualify for the exemption assuming your disability qualifies as permanent and total. Two forms of proof of disability are required. Examples include a letter from your physician, employer and/or the Social Security Administration. Qualifying for the state’s property tax exemption can save you hundreds of dollars. To learn more answers about your property tax situation, click the FAQs link here.
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Stewart H. Welch, III, CFP®, AEP, is the founder of THE WELCH GROUP, LLC, which specializes in providing fee-only investment management and financial advice to families throughout the United States. He is the author or co-author of six books, including 50 Rules of Success; J.K. Lasser’s New Rules for Estate, Retirement and Tax Planning- 6th Edition (John Wiley & Sons, Inc.); THINK Like a Self-Made Millionaire; and 100 Tips for Creating a Champagne Retirement on a Shoestring Budget. For more information, visit The Welch Group. Consult your financial advisor before acting on comments in this article.
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