Ownership of real and personal property within this state.

The state tax rate is 6.5 mills.

County millages vary per taxing jurisdiction.

Counties and cities may decrease their ad valorem tax rate, provided the decrease does not jeopardize the payment of bonded indebtedness.

Any increase in the county and municipal tax rate must be approved by the governing authority, the legislature, and the voters of the taxing jurisdiction.

The county commission, at its first regular meeting in February, shall levy the amount of general taxes required for county expenses for the current year, not to exceed one-half of 1% of the value of taxable property as shown by assessment records.

All non-exempt property is divided into the following classes and subject to the assessment ratios indicated:

Class I: 30%

All property of utilities used in the business of such utilities.

Class II: 20%

All property not otherwise classified.

Class III: 10%

All agricultural, forest, and single-family, owneroccupied residential property, including owneroccupied residential manufactured homes located on land owned by the manufactured homeowner, and historic buildings and sites. Residential property shall include single- family dwellings and the fully developed underlying lot owned by a home builder licensed by the Alabama Homebuilders Licensure Board or who is otherwise authorized by the board to construct single family homes; provided that this classification shall not exceed a period of 24 months.

Class IV: 15%

All private passenger automobiles and motor trucks of the type commonly known as “pickups”, or “pickup trucks” less than 8,000 pounds gross weight owned and operated by an individual for personal or private use and not for hire, rent, or compensation. Automobiles and “pickup” trucks under lease-purchase option agreements which are leased by an individual for personal or private use are also included.

All taxable property is to be appraised at its fair and reasonable market value, with the exception of Class III property, which may be appraised by the assessor on current use value if the owner of the property makes property application. All taxpayers have the right to appear before the county board of equalization concerning property valuation.

EXEMPTION

Residents of this state, with homesteads who are less than 65 years of age, are exempt from state-levied property taxes not to exceed $4,000 in assessed value, or 160 acres in area. Residents of this state with homesteads, who are over 65 years of age, retired due to permanent and total disability (regardless of age), or blind as defined in Section 1-1-3 (regardless of age or whether such person is retired) shall be exempt from all state levied property taxes.

Residents of this state, with homesteads who are less than 65 years of age, are exempted from county-levied property taxes, except countywide and school district property taxes levied for school purposes, not to exceed $2,000 in assessed value, nor 160 acres in area. An additional exemption, not to exceed $4,000 in assessed value may be granted for county and municipal taxes, provided countywide, school district, or municipal school district exemptions are approved by resolution of the governing body and school system boards.

Residents of this state, with homesteads, who are 65 years of age or older with an annual adjusted gross income of less than $12,000, as reflected on the most recent state income tax return or some other appropriate evidence, who are retired due to permanent and total disability (regardless of age), or who are blind as defined in Section 1-1-3 (regardless of age or whether such person is retired) are exempted from property taxes levied by any county of this state, including taxes levied for school districts, not to exceed $5,000 in assessed value, nor 160 acres in area.

The principal residence and 160 acres adjacent thereto of any person who is 65 years of age or older having a net annual taxable income of $12,000 or less, as shown on such person’s and spouse’s latest United States income tax return or some other appropriate evidence acceptable to the department or who is permanently and totally disabled, regardless of age or income, are exempt from all state, county, and municipal property taxes on their principal residence.

Property tax exemptions include state, county, and municipal property; property devoted exclusively to religious worship, educational, or charitable purposes; household and kitchen furniture; farm tractors, farming implements used for agricultural purposes by the owner; stocks of goods, wares, and merchandise; and manufactured homes rented or leased, not located on land owned by the manufactured homeowner (these homes must be registered).

In order to encourage the development of new industry in the state, as well as to encourage the expansion of existing industry, there are provisions in the law for exemptions from property taxes in some cases.

Manufacturers of calcium cyanamide, aluminum, or aluminum products are specifically exempt from all state, county, and municipal property tax levies for ten years.

3 mills: (46.15%) – Public School Fund.

2.5 mills: (38.46%) – General Fund.

1 mill: (15.38%) – Human Resources Fund.