Greateer Talladega Lincoln Area Chamber of Commerce

Alabama Tax Structure

Ad Valorem/Property Tax

Property (Ad Valorem) taxes are taxes on real and/or personal property. Real property includes the land, any structures permanently attached to the land, as well as mobile homes. Personal property refers to furniture, fixtures, tpay ools, and equipment used in the operation of a business.

Add-ons to Motor Vehicles are considered personal property. “Add-omillage rn” equipment is any item added to the cab and chassis of a motor vehicle, either by the original manufacturer or a secondary manufacturer. Add-on equipment includes, but is not limited to: box type bodies, dumping mechanisms, wrecker rigs, refrigerated bodies, limousines, armored trucks and vans, buses, cement mixer drums, refuse compactors, cranes, booms, propane and petroleum tanks, and flat beds. Other terms used to describe what is referred to as add-on equipment include: added value equipment, specialized equipment, truck equipment, and bodies.

The values published in the Alabama Uniform Motor Vehicle Assessment Schedule for Ad Valorem Taxes, issued by the Department of Revenue, represent the market value of motor vehicle cab and chassis only and do not include the equipment and bodies added to a vehicle after it leaves the original manufacturer. In these instances, the original manufacturer builds an incomplete vehicle (cab and chassis) and a secondary manufacturer or “upfitter” adds specialized equipment and/or bodies to an incomplete vehicle. These “add-ons” or “added value” components are to be assessed as business personal property.

All aircraft, including hot air balloons both personal or commercial are considered personal property and as such are taxable in Alabama.

The State Department of Revenue is responsible for determining property value which, by law, must be set according to “Fair and reasonable market value.” Your property is probably not for sale, but the appraiser must set the value of the property as if it were to be “SOLD” in an arms length transaction between a willing buyer and a willing seller – neither being under pressure to buy or sell.

Time Table for Collecting Real Property Taxes
Taxes are collected on the following schedule for the year that ended on September 30.

property-tax-timetable

What to do When you Buy Property

  1. Record deed in Probate Office
  2. Assess the property in the Revenue Commissioner’s Office when the deed is recorded. Claim any exemptions which are due at this time. Be sure to provide your address and telephone number
Homestead Exemption

  • Homestead Exemption I May be Claimed on your principal residence, regardless of age or income. Amount of assessed value exempted is $4,000.00 State and $2,000.00 County.
  • Homestead Exemption II (Act 91) For persons over 65 or totally disabled, whose income is less than $12,000.00 annually. The exemption is for all State taxes and County up to $5,000.00 Assessed Value.
  • Homestead Exemption III (Act 48) For persons after 65 or totally disabled, this exemption is from all property taxes if their taxable income is less than $7,500.00. NOTE: For homestead exemption II and III, the taxpayer must file and sign their assessment each year to remain eligible.


Current Use Value

Current use value is an exemption which applies to class III property. Upon application, the property is taxed based on value to the owner without consideration of the potential value of the property. Current use is applied most commonly to farm land.

Calculating Your Taxes

All taxable property shall be divided into the following classes and shall be assessed for Ad Valorem tax purposes at the following ratios of assessed value of such property:

  • Class 1 – All property of utilities used in the business of such utilities – 30% of market value.
  • Class 2 – All property not otherwise classified – 20% of market value.
  • Class 3 – All agricultural, forest and residential property – 10% of market value.
Example: 40 acres of cropland in the county appraised at $500.00 per acre. Total fair market value is $20,000.00. Appraised value times (X) 10% equals (=)$2,000.00 times (X) .029 millage equals (=) tax due of $58.00.

After an assessed value has been placed on your property the amount of taxes is determined by multiplying the correct tax rate by the assessed value then subtracting the proper exemptions.

Millage Rates

Millage Rates Applied to Different Areas of Talladega County
1 mill = 1/10 of 1 penny

millage-rates

Tax Collection

Taxes are due 1st of October and are delinquent after the 31st of December.

Make Payments in the Following Ways

  • Pay by mail and avoid waiting in line by mailing a check or money order to: Talladega County Revenue Commissioner PO Box 1119 Talladega, AL 35161
  • You may come to the Revenue Commissioner’s Office and make payment in person.
  • Ask your mortgage company to pay your bill.
failure-to-pay

If you purchase property during the year, you need to make sure the taxes are paid. The tax bill will usually be in the previous owner’s name. You are responsible for taxes on all property you own-no matter how the tax bill might be listed.

Homestead Exemptions
State up to 4000 x .0065
County up to 2000 x .0095
Multiply Assessed Value X Millage
Multiply state exemption up to 4000.
Multiply county exemption up to 2000.
Add these two amounts together and subtract from first totals.
This will give you the amount of tax due after exemptions

Example
Assessed Value: 4500 ($45,000 appraised value) District 1
4500 x .029 = $130.50
St.h/x ex. 4000 x .0065 = -26.00
Co.h/s ex. 2000 x .0095 = -19.00
Total Tax Due = $85.50