Business Personal Property
All persons, corporations, partnerships, etc. owning business personal property, aircraft, commercial mobile or portable units are subject to ad valorem tax. Business personal property is movable property associated with the operation of a business such as furniture, fixtures, machinery, and equipment that is not permanently affixed or part of the real property. Essentially, personal property is everything that is not real estate.
How to Report Business Personal Property
All business personal property must be listed and assessed in the Revenue Commissioner's Office after October 1, but no later than December 31 of each year. Failure to make an assessment by the 3rd Monday in January will result in a 10% penalty and fees added to the tax bill. All business personal property is appraised by the Revenue Commissioner for taxes, based on the original cost with allowances for depreciation due to age.
How we Determine the Value of Your Business Personal Property
To determine the value of your business personal property, we use the guidelines set forth in the Alabama Personal Property Appraisal Manual issued by the Property Tax Division of the Alabama Department of Revenue. This ensures uniformity among all business personal property appraisals across the state. Some of the factors that affect a property's market value are the business type, type of equipment, acquisition year, and acquisition date. Business personal property is a Class II property and is assessed at 20% of the market value.
Taxes become due on October 1, the same as ad valorem tax on real property. Delinquent business personal property taxes are handled differently, however. Beginning January 1, when the taxes become delinquent, the Revenue Commissioner must proceed to collect the taxes due or sell the property to satisfy the lien. Business personal property sold for taxes cannot be redeemed.
Industrial abatements are available. To qualify, the owner or the private user of an individual property must file with the County Revenue Commissioner a copy of the resolution from the city or the county governing body granting the abatement of non-educational ad valorem taxes.