Personal Property Form (pdf)

I. PURPOSE 

       A.     To establish guidelines and procedures for reporting and assessing business personal property pursuant to Section 40-7-14, Code of Alabama 1975.                                 

       B.     Every individual, firm or corporation owning business personal property, aircraft, commercial mobile or portable units in Alabama on October 1 of each

year must provide a complete itemized listing of all such property 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. The list must include a description of the property used in the business, the year of purchase and the purchase price. Failure to make an assessment will result in a 10% penalty and fees being added to the tax bill. Businesses failing to file their business personal property may receive escape taxation at any time as far back as five years prior to the time of discovery

        C.     Taxes become due on October 1, the same as ad valorem tax on real property. Delinquent personal property taxes are handled differently. 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. Personal property sold for taxes cannot be redeemed.

II.     DEFINITIONS

        A.     Personal Property is everything other than real estate that is used in a business or to produce income. It includes such items as furniture, fixtures, office equipment, appliances, tools, machinery, signs, supplies and equipment leased by the business. Businesses that require their employees to provide their own equipment need to either report the equipment or provide the County Appraisers with a list of the employees. Personal property is usually considered not permanently affixed to or a part of the real property. Real property generally consists of land and buildings. The International Association of Assessing Officers (IAAO) uses two common tests, i.e., the intention of the person who put the item in place, and whether the item can be removed from the real estate without damage to the item or the real estate itself. A third "rule of thumb" test is whether the item is serving the building or whether the item is serving the process of production, manufacturing, etc.

III.   VALUATION OF PERSONAL PROPERTY

       A.     The Property Tax Division of the Department of Revenue has established the following procedures for determining the market value and the assessed value of tangible personal property. In order to achieve uniformity throughout the State of Alabama in arriving at the market and assessed value, these must be followed.

              1.  The market value of all tangible personal property will be determined by using the procedures set forth in the Alabama Personal Property Appraisal Manual, as it may be amended from time to time.

              2.  Tangible personal property falls into Class 2 property and is therefore assessed at 20% of its market value

For further information contact,

Lee County Appraisal Department

Personal Property Section 

P. O. Box 3050

Opelika, Alabama  36803-3050

(334) 737-3643 or 737-3642