Personal property is generally defined as property not permanently affixed to or a part of realty. Everything that is not real estate is considered personal property.
The tax assessing official determines whether property is real property or personal property by considering the manner in which it is attached to or secured to the land and the purpose for which the property is used.
The state of Alabama is a situs state for the taxability of personal property; therefore, if property is located in the state on October 1 (the lien date), the property is taxable unless specifically exempted. The state of Alabama has constitutional and statutory exemptions. If you have any questions regarding taxability of personal property, please call our office at 334-242-1525.
For more detailed standards and requirements, please refer to the Administrative Rules.
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 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 valuation of personal property. For example, computer equipment depreciates more quickly than pieces of office furniture.
Reporting Personal Property
Every individual, firm, or corporation owning business personal property in Alabama on October 1 of each year is required to report personal property. Any individual, firm, or corporation owning aircraft based in Alabama, regardless of use, and any individual firm or corporation that purchases a permanent trailer tag for a tractor trailer, truck trailer, or semi-trailer is required to report them as personal property.
A complete itemized listing of all personal property owned on October 1 must be provided to the local assessing official in the taxing jurisdiction in which the property is located. This list must be submitted between October 1 and December 31 of each year to avoid penalty. The list must include a description of the property along with its acquisition date and cost.
Optional Personal Property Assessment Link (OPPAL)
OPPAL is a centralized online filing system for business personal property tax returns. All Alabama taxing jurisdictions* are required to accept personal property tax returns filed using OPPAL; however, the system is optional to taxpayers.
*Eight counties in Alabama have their own online filing systems.
Personal Property Categories
- Intangible personal property includes an owner’s representation of rights to property such as shares of stock, annuities, patents, market certificates, etc. Intangible personal property owned by businesses is not taxable under the property tax laws of this state.
- Tangible personal property includes material items such as machinery and equipment, tools, furniture and fixtures, and other items used in a business activity. Tangible personal property is taxable to businesses for Alabama property tax purposes. Aircraft and avionics equipment is taxable as personal property in the state of Alabama, as well as motor vehicle add-on equipment. The values published by ALDOR in the Alabama Add-On Guide represent the value of motor vehicle cab and chassis only and do not include equipment or bodies added after a vehicle leaves the manufacturer. The add-on equipment or bodies are components, which give the vehicle added value and they are taxed as business personal property.
Tangible Personal Property
Personal property is considered Class II property and is taxed at 20% of market value. Market value multiplied by twenty percent equals the assessment value, which is then multiplied by the appropriate jurisdiction’s millage rates to determine the amount of tax due. The state of Alabama publishes a personal property appraisal manual to serve as a reference guide to Alabama’s assessing and appraisal personnel so that basic methods and procedures can be followed and equity in statewide property appraisal can be ensured.
- Personal Property Appraisal Manual (Revised 07/2022)
- Personal Property Add-On Guide 2020
- Personal Property Add-On Guide 2021
- Permanent Trailer Tag Values Lien Date October 1, 2020
- Permanent Trailer Tag Values Lien Date October 1, 2021
- Index Factors October 1, 2020
- Index Factors October 1, 2021
- Composite Factor October 1, 2020
- Composite Factor October 1, 2021
- Business Identification Code: Alpha
- Business Identification Code: Numeric