Changes coming for property taxes - WAFF-TV: News, Weather and Sports for Huntsville, AL

Changes coming for property taxes

A new property tax law could mean big changes. A new property tax law could mean big changes.

A new law will raise the income threshold for homestead exemptions, which will allow the elderly and disabled to be exempt from property taxes.

However, the law, which takes effect next week, also includes language that changes eligibility requirements, and that could mean some people could lose their exemption.

Lawmakers raised the maximum income requirement from $7,500 to $12,500 for those who are over the age of 65 or those who have retired because of a disability. At the same time, legislators required those applying for the exemptions to offer more proof.

Officials said everyone who currently receives an exemption for a disability will have to re-apply. The State Department of Revenue sent out guidelines this week to county officials.

The disability exemption is now also tied to income, which was not previously required. That could mean some people who are disabled could end up paying property taxes for the first time in years because they won't qualify for the exemption.

The new rules take effect for the 2013 tax year, but those who want exemptions must apply by the end of this year.

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