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  Property tax exemptions reduce the taxable value of a property for a number of reasons. One common exemption is the Homestead Exemption, which handles properties that are the owner's primary residence. There are other property tax exemptions, including taxation on other personal property besides real estate. To help businesses, charities and individuals with their tax burden, Alabama has a number of property tax exemptions.
  
  

Charity Hospital Property

• All charity hospital property in Alabama is exempt from property taxes, whether public or private charity hospitals. The exemption extends to the first $75,000 of value from property taxes, according to the state of Alabama. This exemption is given as long as an audit of the hospital's books can prove that the hospital has done at least 15 percent charity work during any given one-year period. By filing with the county tax assessor, charity hospitals can be exempt from property taxes.
  
  

Wharehoused Items

• Property in retail stores is taxed each year via the inventory reporting process, but there is a specific exemption for warehoused property to be excluded from property tax while it is held by a licensed warehouse facility pending final distribution to the end user or retailer. In this way, the manufacturers do not have to pay taxes on the finished goods they have produced but have not yet distributed for sale.
  
  

Homestead Exemption

• A personal property tax exemption exists in the form of the homestead exemption for Alabama homeowners. As long as you are not claiming more than $4,000 in exempt value, or a property of larger than 160 acres, you can claim the homestead exemption, which will lower your property taxes accordingly. If you are over 65, you are exempt from all state property taxes, also called "ad valorem" taxes, and do not need to specifically claim the homestead tax exemption.