In one form or another, the collection of property tax has served as a source of
revenue for state and local governments since colonial times. In Alabama, the
property tax is a major source of local revenue with public education being the primary
beneficiary.
| Property (or ad valorem) taxes
are levied based on the "fair and reasonable market value" of the subject or the
property being taxed. Alabama taxes both real and business personal property. |
Ad Valorem (L) -
"According to Value"
|
Real property
generally includes land and permanently affixed improvements to the land. Personal
property (or personalty) refers to items which are movable or not permanently affixed to
the land. Business personal property refers to furniture, fixtures, tools, vehicles,
and equipment used in the operation of a business. Airplanes and
corporate shares
of stock are also considered personal property.
In Alabama,
October 1st
is the
"law or lien"
date and
ad valorem
(property) tax
is in arrears. |
Alabama is one of only nine
states which classes property.1 Property fits into one of four classes for taxation in the State of Alabama. Each county
assessing official is responsible for estimating fair and reasonable market value, subject
to review by the taxpayer, the board of equalization, and the Alabama Department of Revenue. The
responsibility for administration of the property tax is presently supervised by the State
and administered by officials at the local level. Title 40 of the Code
of Alabama - 1975 concerns Revenue and Taxation and is generally the
source of authority and responsibility for the property tax. |
1 Alabama
Property Tax Administration Revisited, 1994;
Ward, Keith J & Pippin, Tracy A; Auburn University
CGS.