Alabama Tax Information
Frequently Asked Questions
Why does it seem to take
so long for the tax bill to reflect the change of ownership
from seller to buyer?
In Alabama, the tax year is
Oct. 1 - Sept. 30 and we pay property taxes a year in ARREARS.
Alabama law provides that the tax bill due Oct. 1 of any
given year must be in the name of the owner of record as
of the preceding Oct. 1.
So, it can take as long as
two years for the buyer to receive a tax bill in his/her
name. For example, let's say that buyer and seller close
on Oct. 3, 1993, and that the deed is dated and recorded
that same day. The buyer also files his Assessment Return
and claims homestead exemption that same day. At this point,
the buyer may be expecting the Oct. '94 tax bill to reflect
the change of ownership. But because the owner of record
on Oct. 1, 1993 was the seller, the Oct. '94 tax bill must
be in his/her name. The buyer's Assessment Return and homestead
exemption, therefore, is effective Oct. 1, 1994 to be reflected
on the Oct. '95 tax bill.
How do the County and State
arrive at the value of my house?
All property appraisals are
made in accordance with the requirements and standards of
the State Department of Revenue and under its Supervision
using the guidelines and procedures of the Alabama Appraisal
Manual. Baldwin County has 95,000 separate parcels of land
that must be individually appraised for property tax purposes.
Under "mass appraisals", methods and techniques
differ from those of fee appraisers. Regardless of the method
used, however, fair and reasonable market value is the objective.
How often will my house
be appraised?
Alabama law requires that
all real estate in Baldwin County be reviewed, and updated
if necessary, at least once every five years. However, if
certain indicators show that property values are not "equal"
the State Department of Revenue and/or Federal Court can
order another countywide revaluation. The purpose of a countywide
revaluation program is to equalize the value base by valuing
all properties as of the same date.
If I make an addition to
my home or put a new building on my property, when should
the Assessor's Office be notified?
By the following Dec. 31.
By doing so, you will avoid a 10% penalty imposed by law.
All this is interesting,
Mr. Johns, but what is the bottom line? How do market value
and tax levies effect my property taxes?
This office does not establish
the property tax rate that actually determines how much
you pay in taxes. The property taxes that we pay for schools,
city and county services, etc. are based upon a tax levy
(mileage rate) set annually by the County Commissions and
the eleven municipalities in the county.
If the market value of your home remains constant - and
if tax levies remain constant - so will your property taxes.
If, however, there is a change (increase or decrease) in
either the market value of your home or in the tax levy,
your property taxes will change accordingly.
If I do not think that the
estimated market value of my home is fair, is there anything
that I can do?
Of course. You can file a
written appeal with the Baldwin County Board of Equalization.
This is a relatively simple procedure. It cost you absolutely
nothing to file. Just send your letter of appeal to my office
and we will be happy to forward a Board of Equalization
form to you at the appropriate time. The deadline for filing
a written appeal is the last Monday in April for all property
taxes due the following October 1.
Where can I find some helpful
person to advise me and answer my questions about my property?
I and members of my staff
are available to meet with you personally to consider your
concerns and to answer your questions. We will be glad to
assist you. If it is inconvenient for you to meet with us,
you can call or write to me. I will respond to you.
Calculating Your Tax
The Alabama Legislature Has
Established Property Assessment Ratios As Follows:
|
Class Of Property
|
Type of Property
|
Classification
%
(Assessment Ratio)
|
|
Class I
|
Utilities
|
30%
|
|
Class II
|
All Other Property
|
20%
|
|
Class III
|
Farm, Forest, and
Owner Occupied Residential Property
|
10%
|
|
Class IV
|
Motor Vehicles
|
15%
|
General Formula & Example
|
Fair Market Value
|
x
|
Classification
Percentage
|
=
|
Assessed
Value
|
x
|
Tax Levy
|
=
|
Gross Tax
|
-
|
Homestead
Exemption
|
=
|
Net Taxes
|
|
|
$50,000
|
x
|
10%
|
=
|
$5,000
|
x
|
.0275
|
=
|
$137.50
|
-
|
$44.00
|
=
|
$93.50
|
