Property Tax Experts
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For taxpayers who may be experiencing difficulty in paying their property taxes,
there may be help. Most cities in the United States have Property Tax Poverty
Exemption Policy and Guidelines. You may be eligible to waive your annual property
tax for one year read more
there may be help. Most cities in the United States have Property Tax Poverty
Exemption Policy and Guidelines. You may be eligible to waive your annual property
tax for one year read more
Assessed Value fixed by Alabama Constitution
Amendment 373 of the Constitution provides that all real and personal business
property will be assessed at 20% of its fair market value. That is, for property with a fair
market value of $1,000,000, the assessed value would be $200,000 ($1,000,000 *
20%). The combined state and local millage rate would then be applied to the
assessed value.
Low Millage Rates
Section 214 of the Constitution limits the state millage rate on both real and personal
property to 6.5 mills (3 mills for education, 1 mill for relief, and 2.5 mills for general
uses). This rate is equivalent to a tax of $6.50 for every $1000 of assessed value.
However, both cities and counties may levy millage rates in addition to the state's 6.5
mills. These local rates vary, but the average rate statewide is 42 mills, including the
state's 6.5 mills. For real and personal business property with a fair market value of
$1,000,000 the average property tax would be only $8,400 ($1,000,000 * 20% * .042).
(.pdf format) or (Excel spreadsheet format).
Tax Abatements
The Tax Incentive Reform Act of 1992 (TIRA) allows qualified industries to receive
abatements of non-educational property taxes for new businesses locating to
Alabama, and for expansions of existing facilities in Alabama. TIRA is in law at
Chapter 9B, Title 40, Code of Alabama 1975. Click here for more information on tax
abatements .
Amendment 373 of the Constitution provides that all real and personal business
property will be assessed at 20% of its fair market value. That is, for property with a fair
market value of $1,000,000, the assessed value would be $200,000 ($1,000,000 *
20%). The combined state and local millage rate would then be applied to the
assessed value.
Low Millage Rates
Section 214 of the Constitution limits the state millage rate on both real and personal
property to 6.5 mills (3 mills for education, 1 mill for relief, and 2.5 mills for general
uses). This rate is equivalent to a tax of $6.50 for every $1000 of assessed value.
However, both cities and counties may levy millage rates in addition to the state's 6.5
mills. These local rates vary, but the average rate statewide is 42 mills, including the
state's 6.5 mills. For real and personal business property with a fair market value of
$1,000,000 the average property tax would be only $8,400 ($1,000,000 * 20% * .042).
(.pdf format) or (Excel spreadsheet format).
Tax Abatements
The Tax Incentive Reform Act of 1992 (TIRA) allows qualified industries to receive
abatements of non-educational property taxes for new businesses locating to
Alabama, and for expansions of existing facilities in Alabama. TIRA is in law at
Chapter 9B, Title 40, Code of Alabama 1975. Click here for more information on tax
abatements .
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