There shall be exempt from ad valorem taxation:

1. (a) all property of the State, counties, municipalities, school districts and other political subdivisions, if the property is used exclusively for public purposes;
2. (b) all property of all schools, colleges and other institutions of learning and all charitable institutions in the nature of hospitals and institutions caring for the infirmed, the handicapped, the aged, children and indigent persons, except where the profits of such institutions are applied to private use;
3. (c) all property of all public libraries, churches, parsonages and burying grounds;
4. (d) all property of all charitable trusts and foundations used exclusively for charitable and public purposes;
5. (e) all household goods and furniture used in the home of the owner of such goods and furniture, but this exemption shall not apply to household goods used in hotels, rooming houses, apartments or other places of business;
6. (f) all inventories of manufactures, except manufactured articles which have been offered for sale at retail or which have been available for sale at retail;

7. (g) all new manufacturing establishments located in any of the counties of this State after July 1, 1977, for five years from the time of establishment and all additions to the existing manufacturing establishments located in any of the counties of this State for five years from the time each of these additions is made if the cost of the addition is fifty thousand dollars or more. The additions shall include additional machinery and equipment installed in the plant. The exemptions authorized in this item for manufacturing establishments, and additions to those manufacturing establishments, do not include exemptions from school taxes or municipal taxes but include only county taxes. All manufacturing establishments and all additions to existing manufacturing establishments exempt under existing statutes are allowed their exemptions provided for by statute until the exemptions expire. Municipal governing bodies may by ordinance exempt from municipal ad valorem taxation for not more than five years all new manufacturing establishments located in any of the municipalities of this State after July 1, 1985, and all additions to the existing manufacturing establishments, including additional machinery and equipment, located in any of the municipalities of this State costing fifty thousand dollars or more made after July 1, 1985. Exemptions from municipal taxation granted pursuant to this item may not result in any refund of taxes;

   1. (1) all new corporate headquarters, corporate office facilities, distribution facilities located in the municipality, and additions to such facilities; and

   2. (2) all facilities of new enterprises engaged in research and development activities located in the municipality, and additions to such facilities.

      The exemptions allowed pursuant to this paragraph are subject to those terms and conditions that the General Assembly may provide by law.

   The governing body of a municipality may by ordinance exempt from municipal ad valorem taxation for not more than five years:

8. (h) all facilities or equipment of industrial plants which are designed for the elimination, mitigation, prevention, treatment, abatement or control of water, air or noise pollution;
9. (i) a homestead exemption for persons sixty-five years of age and older, for persons permanently and totally disabled and for blind persons in the amount of ten thousand dollars of the fair market value of the homestead under conditions prescribed by the General Assembly by general law; provided, that the amount may be increased by the General Assembly by general law, passed by a majority vote of both houses;

10. (j) intangible personal property.

    The exemptions provided in subitems (c) and (d) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property. Homestead exemptions from ad valorem taxation not specifically provided for in this section may be provided for by the General Assembly by general law. In addition to the exemptions listed in this section, the General Assembly may provide for exemptions from the property tax, by general laws applicable uniformly to property throughout the State and in all political subdivisions, but only with the approval of two-thirds of the members of each House. All exemptions not specifically provided for or authorized in this article shall be repealed March 1, 1978. The General Assembly shall provide for methods and procedures in applying for the exemption of any property as is described in this section.

    In addition to the exemptions provided and authorized in this section, subject to statutory authorization, the governing body of a county by ordinance may impose a sales and use tax in order to exempt all or a portion of the value of private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors from property taxes levied in the county. This exemption, or its subsequent rescission, is allowed only pursuant to a referendum held in the county in the manner that the General Assembly provides by law.

(1976 (59) 2217; 1977 (60) 90; 1985 Act No. 19; 1995 Act No. 47; 2001 Act No. 9.)

Editor's Note

The present provisions of this section are somewhat similar to former Section 4 of Article X as it existed prior to the 1977 revision.

See Article III, Section 28 for Notes of Decisions relating to homestead exemption.