The qualification and application procedures for current use valuation of property in lieu of fair and reasonable market valuation is quite specific as set out in Title 40-7-25.1 and 40-7-25.2 of the Code of Alabama 1975. In order for property to qualify for current use valuation, the property must be Class III Property which is defined as follows:
Class III Property - All agricultural, forest, and residential property, and historic buildings and sites.
Agricultural and Forest Property - All real property used for raising, harvesting, and selling crops or for the feeding, breeding, management, raising, sale of, or the production of livestock, or for the growing and sale of timber and forest products.
Residential Property - Only real property, used by the owner thereof exclusively as the owner's single-family dwelling.
Historic Buildings and Sites - Regardless of the use to which such property is put, all buildings or structures (1) determined eligible by the state historic preservation officer for listing on the National register of Historic Places; or (2) located in a registered historic district and certified by the United States Secretary of the Interior as being of historic significance to the district.
Any taxpayer interested in obtaining current use valuation must make an application with the county assessing official between October 1 and January 1 of any given year. The application requests a description of the property and a general description of the use to which the property will be put. Aerial photographs may be required for forest property to be considered for current use valuation. The tax assessing official may request any additional information to aid him in determining whether the real property qualifies for current use value. Once current use valuation is granted by the county assessing official, the owner of the property is not required to repeat the application for the subsequent years. Following the sale or other disposition of property valued at current use value, the new owner must apply for current use valuation between October 1 and January 1, otherwise, the property will be valued at its fair and reasonable market value.
The county assessing official will analyze the application to determine if the referenced property is qualified for current use valuation. On parcels of 5 acres or less, the assessing official may require submission of additional data such as site management plans from the Alabama Forestry Commission.