U.S. flag An official website of the United States government.

Dot gov

The .gov means it's official.
Federal government websites always use a .gov or .mil domain. Before sharing sensitive information online, make sure you’re on a .gov or .mil site by inspecting your browser's address (or "location") bar.


This site is also protected by an SSL (Secure Sockets Layer) certificate that's been signed by the U.S. government. The https:// means all transmitted data is encrypted  — in other words, any information or browsing history that you provide is transmitted securely.

Vehicle Valuation

The Vehicle Valuation Section is primarily responsible for providing market values to each county in Alabama. These values are used by the county tag offices to calculate the ad valorem taxes on motor vehicles.

Ad valorem taxes on motor vehicles are assessed and collected forward on a current basis to coincide with the collection of motor vehicle registration fees. All accrued ad valorem tax on a motor vehicle must be collected prior to the vehicle registration in accordance with Section 40-12-253, Code of Alabama 1975 . For more detailed standards and requirements, please refer to Administrative Rules.

Upon the sale, trade, total destruction, permanent removal from Alabama, theft without recovery, or other transfer of a motor vehicle constituting Class I, Class II or Class IV property under Section 40-8-1 the owner of such motor vehicle will be entitled to a pro rata credit for the ad valorem taxes paid for the remainder of the then current period for which such taxes have been paid. The owner has twelve (12) months to claim the credit voucher from the date the vehicle is sold, traded, totally destroyed, permanently removed from Alabama, stolen without recovery, or transferred. A credit voucher should be claimed in the county in which the taxes were originally paid and must be used at the time of issuance. In the event the credit is in excess of any taxes due, a new voucher for the excess amount shall be issued and it shall be deemed a receipt for credit. Immediately upon issuance of a receipt for credit and no later than the twentieth day of the month following the month in which the new voucher was issued, the tax collecting official shall remit to the owner a refund credit payment in the amount of the receipt for credit. There is a two ($2.00) dollar fee for each credit voucher redeemed or refund remitted.

Ad valorem tax is a property tax, not a use tax, and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway.

To calculate the assessed value for a motor vehicle, multiply the market value by the appropriate assessment and the applicable millage rate.

Ad Valorem Property Classes: Motor Vehicles

  • Class I Motor Vehicles 30%: This class includes all motor vehicles owned by public utilities and used in the business of such utilities.
  • Class II Motor Vehicles 20%: This class includes all motor vehicles that do not fall within the definition of either Class IV or Class I motor vehicles. This class includes motorcycles, utility trailers, recreational vehicles, leased vehicles not for private use, leased vehicle without a lease-purchase option contractual agreement, trucks weighing more than eight thousand (8,000) pounds gross vehicle weight and all vehicles used for commercial purposes.
  • Class IV Motor Vehicles 15%: This class includes all private passenger motor vehicles including private passenger motor vehicles under lease-purchase option contractual agreements, motor vehicles registered in the name of a beneficiary of a trust, station wagons, sport utility vehicles (regardless of weight) vans and “pickup” trucks to include all private passenger “pickup” trucks under lease-purchase option contractual agreement, which weigh eight thousand (8,000) pounds gross vehicle weight or less that are owned and operated by an individual for personal or private use and not for hire, rent or compensation.