What’s Exempt from Alabama’s Property Tax August 26, 2008 TF Staff TF Staff One of today’s news items is a proposal in Alabama to increase health insurance premiums on overweight Alabama state employees. Dubbed a “fat tax,” it’s not, since the money presumably won’t be going to the state budget. It remains to be seen whether the increase (a nice round $25 per month) is designed to cover the costs imposed by the overweight on the health insurance program, or just a nannyish penalty designed to express disapproval and change behavior. Meanwhile, Alabama has not updated its property tax law in a long time, and it shows. Here’s what the Tax Foundation has dug up regarding property that is exempt from the Alabama property tax (among others): From Alabama Code Section 40-9-1: (7) The property of deaf mutes and insane persons to the extent of $3,000 and the property of blind persons to the extent of $12,000; (8) All family portraits; (10) All cotton, wherever grown, stored in licensed warehouses in the State of Alabama for a period not exceeding 12 months; (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; (16) All poultry; (17) The property of all incompetent veterans to the value of $3,000; (21) Tobacco leaf stored in hogsheads; (26) All vessels and equipment thereon, used predominantly in the business of commercial shrimping by the owners thereof Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Alabama Tags State Tax and Spending Policy