Assessment Payments
A taxpayer is required by Alabama Law (Code S 40-7-1) to provide a complete list of all property which is owned. The person acquiring property is responsible for reporting to the Revenue Commissioner a complete legal description of the property and should at the time claim any exemptions for which he is eligible.
The Revenue Commissioner should be furnished a correct mailing address for all properties. Thereafter, the property owner must report any changes in ownership and any improvements or deletions to the Revenue Commissioner.
Property Classification
In a joint effort, the Assessing Department and Collection Department are responsible for assessing & collecting property taxes. In Alabama, property is Classified as:
Class 1: Utility - 30%
Class 2: All Other Property - 20%
Class 3: Farm property, owner-occupied residential, National Historic Register property - 10%
Class 4: Motor Vehicles - 15%
The appraised value is multiplied by the classification to determine the assessed value.
Registration of Mobile Homes
Alabama State Law changed the method of tax collection for Mobile Homes to a fee system beginning October 1, 1991.
Mobile Homes are taxed one of two ways:
1. Ad Valorem Taxation -All Manufactured mobile homes, which are owner-occupied and located on the owners land are taxed with the real estate. Each year, after your property taxes have been paid, the Revenue Commissioners office will mail the property owner a decal, which is required by law to be displayed on the manufactured mobile home.
2. Registration - Manufactured mobile homes that are not owner-occupied are required to be registered. Registration of mobile homes can be done at the License Commissioners Office.
Homestead Exemption
Regular Homestead is for person under 65 years old and applies to state and County Single-family owner-occupied property. The amount is $4,000.00 assessed value on state, and $2,000.00 assessed value on county.
Act 48-Total Exemption is for Total or 100% Disabled, 65 years old or over, whose net taxable income is $7,500.00 or less as shown on prior years joint federal & state income tax return (including spouses income).
This exemption is for homestead property taxes only.
Act 91-Homestead is for persons age 65 years old, or blind whose adjusted gross income is $12,000.00 or less on your prior years Alabama State Income Tax Return. The Exemption is for all state, school district and county taxes up to $5,000.00 in assessed value. Municipal taxes are not exempt.
If the income is too high, you are eligible for total exemption on the state amount of taxes and $2,000.00 assessed value on county. This exemption is for homestead property only.
Exemption should be applied for in the assessing department and will applied to next years bill.
Current Use Value Exemption
Current use value is an exemption, which applies to class 3 property. Current use must be filed by the property owner with the County Revenue Commissioners Office. Current use is applied most commonly to farmland and takes into consideration the potential value of the property.
Value Determination
The State Department of Revenue, Ad Valorem Tax Division, will determine the "current use" values each year for soil group. These values are applicable to the entire State of Alabama.
Conversion (aka Recapture)
If any property for which a "current use" valuation has been approved is converted to any use other than that for which the application was filed, the Revenue Commissioner shall revalue the property according to current market value as provided by Code of Alabama 1975, Section 40-7-25.3. The Revenue Commissioner shall then base his/her appraisal on the then current market value assessing such property accordingly for purpose of collecting any additional taxes due thereon. After conversion, taxes will be due based on the sales price or the fair and reasonable market value of such property at the time of its conversion, whichever is greater, for the preceding three (3) ad valorem tax years.
