States We Serve › Alabama
Alabama Property Tax
Alabama runs on an October-to-September tax year, assesses most commercial property at 20% of market value, and gives thirty days from the valuation notice to appeal. The ownership on the deed can change the ratio, and so can land use — two things we check on every Alabama parcel.
At a glance
- Assessment date
- October 1. Property is assessed as of October 1 for the tax year that begins that day; the bill arrives the following October. Code of Ala. §40-7-1
- Assessment ratios by class
- Class I public utilities 30% · Class II all other property (commercial, industrial, rental, land held by a corporation) 20% · Class III agricultural, forest, historic and owner-occupied single-family residential 10% · Class IV private passenger vehicles 15% Ala. Const. Art. XI §217
- Annual increase cap
- For tax years 2024–2027 the assessed value of Class II and Class III real property may not increase more than 7% a year over the prior year, excluding new construction, additions and property that has changed hands. Act 2024-344
- Current-use valuation
- Class III agricultural and forest land may be valued at current use rather than market value on application filed by January 1. Land use and soil coding can cut the taxable value sharply.
- Business personal property return
- Due between October 1 and December 31; itemized with acquisition dates and costs. Late returns are penalized and may be estimated. §40-7-14, Rule 810-4-1-.12
- Valuation notices
- Mailed by the county when value changes, generally in the spring; the county also publishes the dates its board will sit.
- Board of Equalization appeal
- Written objection within 30 days of the date on the valuation notice. The board hears protests and issues a final decision. §40-3-20, 40-3-24
- Circuit court appeal
- Within 30 days of the board’s final decision, with the disputed tax paid or bonded. §40-3-25
- Taxes due
- October 1 of the following tax year; delinquent after December 31. Interest and fees accrue from January 1.
- Sale price disclosure
- Deeds carry a recording tax based on price, so assessors can derive sale prices; Alabama is generally treated as a disclosure state.
The Alabama calendar
Alabama’s tax year runs October 1 to September 30, so the appeal you file in the spring concerns the bill that arrives the following October.
- Oct 1Assessment (lien) date for the new tax year. Prior year’s taxes also come due today.
- Oct 1–Dec 31Business personal property returns filed.
- Dec 31Last day to pay the prior year’s taxes without penalty; last day to file BPP returns.
- Jan 1Current-use applications due. Delinquency begins on unpaid taxes.
- SpringValuation notices mailed; Boards of Equalization announce their sessions.
- +30 daysBoard of Equalization objection due 30 days from the notice date.
- SummerBoard hearings and final decisions.
- +30 daysCircuit court appeal due 30 days after the board’s final decision.
- Oct 1Tax bills issued for the year just assessed.
How an appeal moves
Class and ownership questions decide as many Alabama appeals as value does, so the first review covers who holds title and how the land is coded before it turns to the income statement.
Informal review
Raise classification, land-use and measurement issues with the revenue commissioner’s office as soon as the notice arrives; many are corrected without a hearing.
Board of Equalization
File a written objection within 30 days of the notice. Present your evidence of market value at the hearing; the board issues a final written decision.
Circuit court
Appeal within 30 days of the board decision. The disputed tax must be paid or a supersedeas bond posted; the court hears the case de novo.
Department of Revenue
The Department supervises county valuation for uniformity and can reassess or equalize; its rules govern current use, personal property reporting and valuation methods.
Laws worth knowing
Property classes — who owns it matters
Ala. Const. Art. XI §217 and §40-8-1. Owner-occupied single-family residences are Class III at 10%; the same house held by a corporation, or any rental or commercial property, is Class II at 20%. Land in an individual’s name used for agriculture or forestry is Class III and may qualify for current-use value.
Act 2024-344 — the 7% cap
Beginning with the October 1, 2024 assessment and running through tax year 2027, the assessed value of Class II and III real property cannot rise more than 7% over the prior year’s assessed value. New construction and improvements, property that sold or changed use, and property not previously on the roll are excluded.
Current-use valuation
§40-7-25.1–25.3 and Rule 810-4-1-.01. Agricultural, forest and single-family owner-occupied Class III property is valued at current use on timely application (by January 1). Converting the land to a non-qualifying use within two years of a sale triggers additional tax for the three preceding years.
Business personal property
§40-7-14 and Rule 810-4-1-.12. Every business with tangible personal property in Alabama on October 1 must file an itemized return by December 31, including fully depreciated assets still in use. A depreciation schedule is accepted if adjusted for additions, deletions and expensed items.
Uniformity and state oversight
§40-2-11 and 40-2-16 give the Department of Revenue general supervision of valuation and equalization statewide and the power to revalue or reassess, with notice, to keep assessments at fair and reasonable market value and uniform across counties.
Income property and personal property
Where an income-producing property is valued by the income approach, the furniture, fixtures and equipment that produce that income should not be assessed a second time as business personal property — a double assessment worth checking on every hotel, apartment and restaurant return.
Official resources
Alabama Department of Revenue — Property Tax Division · ADOR real property FAQ · Code of Alabama, Title 40 · Property tax administrative rules (Chapter 810-4-1)
This page is general information about Alabama property tax procedure, not legal advice. Deadlines and ratios change; confirm the current year’s dates with the county or with us before relying on them.
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