Miscellaneous
Alabama Tax Exemption for a Vehicle Paid for by VA
A disabled veteran whose private-use vehicle was fully or partly paid for by VA is exempt from license fees and from ad valorem tax on that vehicle.
Also called: automobile grant, vehicle tax, ad valorem, license fee, adaptive vehicle.
For: Veteran or service member.
Where it applies
Written for the jurisdictions listed here.
- AlabamaState
Code section 40-12-254 covers a disabled veteran of World War II, or of any hostilities in which the United States was, is, or will be engaged against a foreign state, who owns a vehicle that VA has paid for in whole or in part under an act of Congress. The vehicle has to be kept for private use only.
That vehicle is exempt from all license fees and from ad valorem tax. The Department of Veterans Affairs states the same rule on the disabled-veteran plate that is issued because VA funded the vehicle: one plate, exempt from license fees and ad valorem tax.
This is narrower than the 10% plate. The 10% plate removes state license tax and registration fees and can leave local ad valorem in place. This exemption removes the ad valorem tax because VA paid for the vehicle.
Thresholds
| Gate | Rule |
|---|---|
| Vehicle paid for by VA | VA has to have paid for all or part of the vehicle, and the veteran has to keep it for private use. The exemption is license fees and ad valorem tax on that vehicle. |
Sources
Updated
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Disclaimer
VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.