Property Tax Exemption
Alabama exempts from ad valorem taxes nonprofit hospitals’ real and personal property used exclusively for charitable purposes unless the property is “let for rent or hire or for use for business purposes.” Ala. Code 40-9-1(1).

Alabama law provides for a general ad valorem tax exemption of the real and personal property owned and operated by a nonprofit hospital. For-profit hospitals that use a portion of their property for charitable purposes may qualify for a partial ad valorem tax exemption (limited to $75,000 of assessed value) if the hospital certifies that in the previous year it “has done 15 percent of its treatment of patients as charity work.” Ala. Code 40-9-1(1) and (2); Alabama Const., Amendment 373(k); Mingledorff v. Vaughan Regional Medical, 682 So. 2d 415, 422 (1996).