Code of Alabama - Title 40: Revenue and Taxation - Chapter 9 - Exemptions From Taxation and Licenses

• Article 1 General Provisions.
• Section 40-9-1 Persons and property generally
  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...
• Section 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,...
• Section 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.
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 40-9-12 The National Foundation's Alabama Field Offices, Y.M.H.A., Seamen's Home of Mobile, Catholic Maritime Club of Mobile, Inc., Salvation Army, Inc., United Way organizations, etc
  (a) The National Foundation's Alabama Field Offices, all Young Men's Hebrew Associations (Y.M.H.A.) also known as Jewish Community Centers (J.C.C.), and all real and personal...
• Section 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...
• Section 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...
• Section 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...
• Section 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,...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 40-9-21.1 Verification of eligibility by mail for certain persons
  (a) Effective January 1, 2020, any person who qualifies for the homestead exemption in Section 40-9-19(a)(1), (b), or (c) shall initially claim the exemption in...
• Section 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...
• Section 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...
• Section 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...
• Section 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'...
• Section 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...
• Section 40-9-25.1 Magic Moments
  Magic Moments, Inc., is exempted from paying any state, county, and municipal sales or use taxes.
• Section 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...
• Section 40-9-25.3 Rainbow Omega, Inc
  The Rainbow Omega, Inc., is exempted from paying any state, county, and municipal sales or use taxes.
• Section 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...
• Section 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...
• Section 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.
• Section 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.
• Section 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...
• Section 40-9-25.9 Bridge, Inc
  The Bridge, Incorporated, is exempted from paying any state, county, and municipal sales and use taxes.
• Section 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...
• Section 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.
• Section 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.
• Section 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.
• Section 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...
• Section 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.
• Section 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....
• Section 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.
• Section 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.
• Section 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...
• Section 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,...
• Section 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.
• Section 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...
• Section 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...
• Section 40-9-26.1 THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER IN THE 2019 REGULAR SESSION, EFFECTIVE SEPTEMBER 1, 2019. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT
  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...
• Section 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...
• Section 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...
• Section 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...
• Section 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
• Section 40-9-30 Durable medical equipment; exemptions from certain taxes
  (a) As used in this section, the term "durable medical equipment" means equipment which can stand repeated use, is used to serve a purpose for...
• Section 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...
• Section 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
• Section 40-9-33 Sales to a contractor of certain personal property to be incorporated into realty
  Repealed by Act 2004-638, p. 1461, §1, effective July 1, 2004.
• Section 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...
• Section 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...
• Section 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.
• Section 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...
• Section 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...
• Section 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...
• Section 40-9-39.1 Sale of certain durable medical equipment, prosthetics and orthotics devices, and medical supplies
  Repealed by Act 2014-453, §2, effective August 1, 2014.
• Article 2 Certain Factories, Industries and Plants.
• Article 3 Certificate of Exemption.
• Section 40-9-60 Certificates of exemption for persons or companies exempt from sales, use, and lodging taxes
  (a) All persons or companies, including, but not limited to, those cited in this chapter, other than governmental entities, which have statutory exemption from the...
• Section 40-9-61 Information reports to be filed by persons or companies exempt from sales, use, and lodging taxes
  (a) All persons or companies, other than governmental entities as defined in Section 40-9-60, exempt from the payment of Alabama sales, use, and lodgings tax,...

Last modified: May 3, 2021