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FAQ Categories / Tax: Personal Property

The Code of Alabama 1975, Sections 40-3-20, 40-3-24, and 40-3-25 detail the appeals process. If you believe your property value is incorrect, you may file a written protest to the County Board of Equalization (BOE). Property owners are given 30 days to file an appeal after receiving written notice of valuation.
If you fail to file a listing of your Personal Property, the assessing official's office in the county where the property is located will make an assessment of the property using the best available information. In addition to tax owed, applicable penalties will be assessed. This procedure is in accordance with Section 40-7-22, Code of Alabama 1975.
Yes. All counties are currently following the Alabama Department of Revenue guidelines to regularly audit businesses which have personal property.
If your business closed prior to October 1st and the assets have been disposed of, you should file a final tangible personal property tax return, indicating the date of closure or sale of the business. For additional information, contact the county in which your property is located, click here.
Contact your local county office to receive a form by mail or fax, or download the Business Personal Property Return Form.
If you fail to file a listing of your Business Personal Property, a field review will be conducted in accordance with the provisions of Title 40 of the Code of Alabama 1975. During this field review, a listing will be made of your business personal property and this property will be assessed to you.
When you purchased the equipment, you paid sales tax. The Tangible Personal Property Tax is an "ownership" tax that is solely based upon the value of the property subject to taxation.
Yes, all assets owned as of the October 1 lien date must be reported with acquisition dates and acquisition costs. The depreciation schedule used in preparing income tax returns may be used. However, the depreciation schedule must be adjusted for additions and deletions so that it will contain property owned by the business on the October 1 lien date. Also, assets which are expensed rather than capitalized for income tax purposes and are not included on the depreciation schedule must be added to the taxpayer's listing so that all personal property is reported.
The Property Tax Division of the Alabama Department of Revenue has established procedures in the Alabama Personal Property Appraisal Manual for determining market value and the assessed value of personal property. All counties in the state of Alabama use this manual to achieve uniformity. The type of business, type of equipment, acquisition year, and acquisition date are all used in calculating market values. For example, computer equipment depreciates more quickly than office furniture. Personal Property falls into Class II property and is assessed at 20% of its market value.
Title 40, Code of Alabama, 1975, Chapters 8 and 9 list several exemptions from property taxation. All statutory exemptions must be claimed with the County Assessing Official in order for the exemption to be granted. In order for property to be considered for exemption from personal property tax, it must be listed on the return and a reason for exemption included in the description. The appropriate chapters of Title 40 should be referenced for specific exemptions. The exemption status will be determined by the local assessing official.
Contact the local assessing official's office where the property is located. For county contact information click here.
You will receive a tax bill the following October 1st, just like ad valorem taxes on real property. For instance, the taxes due on the property you report this October 1 will be billed and payable the following October 1.
Contact the local collection official's office for payment options.
Personal Property is property not permanently affixed to or part of the real property, such as furniture, fixtures, and/or equipment. Everything that is not real estate is personal property.
Every individual, firm, or corporation owning tangible personal property in Alabama on October 1 of each year is required to report it for taxation. Any individual, firm, or corporation owning aircraft based in Alabama is required to report it on a tangible personal property return. Any individual firm or corporation that purchases a permanent trailer tag or owns a commercial vehicle based in Alabama but registered and tagged in another state is also required to report these assets on a tangible personal property return.
A complete itemized listing of all personal property owned on October 1 must be provided to the appropriate assessing official. This list must be submitted between October 1 and December 31 of each year.
Contact your local County Office to receive a form by mail or fax, or download the Personal Property Return Form.

Taxpayers may file electronic personal property returns in every county in Alabama beginning October 1 of each year. All Alabama taxing jurisdictions* are required to accept electronically filed business personal property tax returns.

*Several counties in Alabama have their own online filing systems.

For more information, see myalabamataxes.alabama.gov.

All furniture and fixtures, as well as machinery and equipment, used in a business activity are required to be reported in detail with their acquisition date and cost. Aircraft and other vehicles being reported must also include make, model, and year information.
Yes, the local assessing official must receive a form every year no later than December 31 to report equipment that is owned and located in the county as of October 1.
You are encouraged to contact your county’s personal property department. For county contact information, view the county offices page.