HB 65 would benefit seniors
RUSSELLVILLE — Seniors in Franklin County could see longterm relief on rising property taxes under a proposed amendment to the Alabama Constitution that would freeze the assessed value of their homes.
State Rep. Jamie Kiel has pre-filed House Bill 65, which would allow residents 65 and older to lock in the assessed value of their primary residence if they have lived in the home for at least five years.
The measure applies only to single-family, owner-occupied homes in Franklin County.
It would freeze the home’s assessed value at the level set the year the homeowner first claims the exemption. Property taxes could still rise through millage rate changes but increases based on rising home values would stop once the exemption is granted.
Renovations and additions would still be subject to reassessment.
Millage rates are the percentages local governments use to calculate property taxes, and they can change even when a home’s assessed value does not.
Property taxes fund county and city school systems along with other local services, but the amendment would not change the locally set millage rates.
Property tax assessments and collections are handled at the county level in Alabama, so local officials would administer the exemption if it is approved.
Kiel said the idea began after a local resident contacted him about how annual property tax increases were affecting their ability to remain in their home.
“A senior citizen contacted me concerning the ever-rising tax on their home,” he said. “We passed legislation for all Alabamians that only allows property tax to rise 7% per year as opposed to the high post COVID increases we all experienced. This will further cap the rate permanently for seniors so they can better budget.”
The exemption would be limited to Franklin County and would not affect property tax assessments in other counties. Existing exemptions such as the homestead exemption would continue to apply. The exemption would apply only to a homeowner’s principal residence and would not apply to rental properties or secondary homes. Reassessments tied to the exemption would apply only to improvements that increase the value of the property, not routine maintenance. Kiel said homeowners would need to apply for the exemption each year. Because property tax provisions are set in the Alabama Constitution, any change must be approved by voters. Local amendments apply only within a single county, so they appear on that county’s ballot rather than a statewide ballot.
Because HB65 is a local amendment, it will appear only on the ballots of Franklin and Colbert counties.
Kiel said the amendment is scheduled to appear on the general election ballot in November 2026.
If voters approve the amendment, the exemption could be claimed beginning Oct. 1, 2027. It would be based on the assessed value of the property on Oct. 1, 2026.
To receive the exemption, eligible homeowners will file a written claim with the Franklin County Revenue Commissioner between Oct. 1 and Dec. 31 each year. They would retain the exemption if the home continues to be their primary residence.
