| 1.
What To Do When You Buy Property
New property owners
often rely on their real estate agent, attorney, or
other representative to properly record and assess
their property. The final responsibility is
still YOURS, as the new owner, to see that all the
necessary steps have been completed.
The Steps are:
- Record your deed
in the Probate Judge's Office.
- Assess the
property in the Revenue Commissioner's Office.
- Claim any
exemption do to you.
- Make sure all of
this is done no later than December 31 for all
property purchased before October 1, in order to
receive a tax bill in your name for the next year.
- If your mortgage
company has agreed to pay your property taxes,
make sure we have the proper name and address for
the company.
- Report any address
changes promptly.
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2.
What do I do if I have added or removed improvements
to my property?
The law requires that
owners, or their agent, must call or come by the
Revenue Commissioner's Office no later than December
31st to sign a new assessment officially reporting any
improvements made to or any removal of structures or
features from their property on or before October 1st
of that year.
Examples of
improvements that are assessable would include new
structures or additions, swimming pools, extensive
repairs, remodeling or renovations; adding a
fireplace, extra bath, deck, carport, garage, etc.
However, such things as re-roofing, minor repairs and
painting (normal maintenance type items) would not
require a reassessment.
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3.
Property Appraisal
Each parcel of land
in a county must be individually appraised for tax
purposes. Each parcel of land must be described
on a property record card (or computer printout).
Characteristics about land and buildings are listed
and valued separately and become the basis for fair
market value.
Improvements to the
land (buildings, garages, etc) are valued on a cost
less depreciation method based on fair market value.
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4.
Assessment of Property
Each taxpayer is
required by Alabama Law (Code 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 at that time should
claim any exemption he or he may be eligible for.
The property owner must report any changes in
ownership to the Revenue Commissioner. All
assessments and bills are based on ownership status as
of October 1 each year.
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5.
Property Classification
| Class
3 |
Owner
occupied residential or farm property |
10%
of appraised value |
| Class
2 |
Commercial
or rental and all other property |
20%
of appraised value |
| Class
1 |
Utility |
30%
of appraised value |
| |
|
|
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6.
Homestead Exemption
A homestead exemption
is given to a property owner if he or she owns a
single family residence and occupies it on the first
day of the tax year for which they are applying.
Regular Homestead is
available to all citizens of Alabama who own and
occupy single family residences, including
manufactured homes. The amount of exemption
shall not exceed $4,000.00 (four thousand dollars) in
assessed value for state taxes and not exceed
$2,000.00 (two thousand dollars) for county taxes.
If you are 65 years of age or a permanently disabled
homeowner you may be eligible for a complete exemption
of property taxes on the property where you reside.
Your net taxable income must be less than $7,500.00
(seventy five hundred) for a complete exemption up to
$12,000.00 (twelve thousand) for a partial exemption.
It is the owners responsibility to let us know if you
qualify.
Proof of age, when
required, may be established by a driver's license,
birth certificate, insurance forms, or other legal
documents.
To prove disability,
you must furnish a statement from two different
sources as to your disability. Physician's
letters, Veterans Administration and retirement
letters are all acceptable. Only one proof is
required if you have a letter from Social Security.
Exemptions should be
applied for before December 31st of each year based on
status to qualify for the next taxing or billing
period. Renewals may be done by mail.
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7.
Current Use
Owners of farmland,
pasture land or timber land that is producing
agricultural products, livestock or wood products for
sale to the general public may apply for current use
exemption. This exemption allows for property to
be appraised at less than fair market value when used
only for the purposes specified.
Any owner of eligible
property must make application to the Revenue
Commissioner's Office prior to December 31st to
receive the exemption or any exemption for the
following year.
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8.
Industrial
Industrial Abatements
are also available. To qualify, the owner of the
property must file with the Revenue Commissioner an
application from the State Department of Revenue and
the local governing agency.
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9.
Timetable for Collection of Taxes
Taxes are collected
on the following schedule for the year ending on
September 30:
| October
1 |
Tax
Due |
| January
1 |
Tax
becomes delinquent & delinquent notices
mailed. |
| February |
Registered
letters mailed and court date set |
| March |
Advertise
all unpaid properties in a local newspaper |
| April |
Tax
Sale |
| |
|
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10.
What methods of payment can I use?
Taxes are due every
year the first of October and are delinquent after
December 31st, even if you do not receive a notice.
Method of payment varies from one office to the
next. You
may pay by mail, by check or money order, but it must
be in the office by December 31st. Some counties
allow payment via Mastercard & Visa also.
Check with your local county office for method of
payment.
If you purchased your
property during the year, you need to make sure the
taxes are paid. The tax bill will usually be in
the previous owners name. You are responsible
for taxes on all property you own, regardless of how
the property is assessed or the tax bill my be listed.
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11.
What happens if I do not pay my taxes?
Each year the taxes
that are not paid are auctioned off at a public sale
at the County courthouse. Individuals who come
to the sale and buy Tax Liens are issued a
"Certificate of Purchase". If no
individual buys the tax lien, a Certificate of
Purchase is made out and delivered to the Alabama
State Land Agent.
The property owner
has three years from the date of the tax sale to
redeem the property from the Revenue Commissioner by
paying all taxes and associated costs. If the
property was bought at the tax sale by an individual
and the owner does not redeem it within three years
from the date of the tax sale, the individual who
purchased the property is entitled to a tax deed.
After a tax deed has
been issued, redemptions can no longer be made in the
Revenue Commissioner's Office, and the property owner
must either make and agreement with the tax lien
holder or resort to a court of law to reclaim the
property.
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12.
What is considered Business Personal Property?
All businesses owning
personal property, aircraft, commercial mobile or
portable units are subject to ad valorem tax.
The property must be listed and assessed in the
Revenue Commissioner's Office prior to December 31st
each year. Failure to submit this information by
the deadline may result in additional fees and
penalties.
Taxes become due on
October 1st, the same as ad valorem tax on real
property. Delinquent personal property taxes are
handled differently, however. Beginning January
1st, when taxes become delinquent, the Revenue
Commissioner must proceed to collect the taxes due or
sell the property to satisfy the tax lien.
Personal property sold for taxes cannot be redeemed.
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13.
I live in a manufactured home, do I have to pay taxes?
The Alabama
Manufactured Home Act (91-694) signed into law July
18, 1991, changed the way manufactured homes are
treated for tax purposes in Alabama. Under the
Act, those manufactured homes located on the owner's
property and not held for rental or lease will be
assessed to the owner. All other manufactured
home owners must register and obtain a decal, the cost
is based on the size and age of the manufactured home.
Manufactured home owners who do not own the land where
it is located must register within 30 days of purchase
and renew each year on October the 1st. The
become delinquent after November the 30th.
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