NEW VEHICLES The ad valorem tax lien is attached to a new vehicle if it is brought to Alabama by a person other than a dealer or manufacturer, or if the vehicle is removed from a dealer`s inventory. Effective January 1, 2016, Section 40-12-253 of the 1975 Alabama Code will be amended to no longer defer the collection of property tax on new vehicles that are privately owned or leased personally. LOCAL TAX RATES Each year, the Alabama Department of Revenue provides the value of vehicles to all registrars to calculate the ad valorem vehicle tax. Ad valorem taxes are a product of the estimable value of the vehicle and the ad valorem tax rate in the place where you live or do business. The tax rate is set by the Alabama Legislature and approved by voters in each jurisdiction. The ad valorem tax is a property tax based on the market value of the Alabama property as of October 1. The ad valorem tax on vehicles is permitted under Section 40-12-253 of the 1975 Alabama Code. An ad valorem tax privilege is attached to a vehicle when it is first introduced into the State by a new resident or when it is originally sold by a new vehicle dealer. Property tax is a property tax, not a use tax. The tax privilege accumulates whether the vehicle is operated on the highway or stays away from the highway.
Your Alabama taxes are calculated based on the estimated value of your property. This is determined by multiplying the estimate by the corresponding property classification, also known as the rating rate. STEP 1: Find Your Estimated Value Your Alabama taxes will be calculated based on the estimated value of your property. This is determined by multiplying the estimated value by the corresponding real estate classifications (tax rate). Estimate x Classification of Property = Classification Table of Assessed PropertyAll taxable property is divided into the following categories and valued for ad valorem tax purposes at the following ratios of the assessed value of such property: Licensing agents are required to collect all unpaid ad valorem taxes due on a vehicle before registering the vehicle (Section 40-12-253a). Licensed dealers and individual sellers must declare pre-registration to a buyer to avoid unnecessary payment of vehicle tax arrears by the new owner. State law requires the collection of twelve months of additional tax payment if no registration information is available. Property tax rates in Lee County vary from city to city and the rest of the county. In the two largest cities, Auburn and Opelika, the total basic tax rate is 54.0 mills. In Phenix, the rate is 60.0 mills.
In Notasulga, Waverly and Smiths Station, the fare is 46.0 mills. In the rest of the county there are 41.0 mills. Estimated Value x Property Classification = Estimated Value If you`re considering becoming a homeowner in Alabama or refinancing a property there, check out our Alabama Mortgage Guide for important information on getting mortgages and details about mortgage rates in the state of Yellowhammer. Actual property tax rates in the county are based on estimated value (10% of market value), with mileage rates ranging from 26.0 in rural areas of District 1 to 43.0 in the City of Fairhope. Estimate x Mileage Rate = Unadjusted Tax Bill Want to know more about your mortgage payments? Check out our mortgage calculator. Alabama dealers must provide the purchaser with an affidavit from the motor vehicle dealer for the ad valorem exemption. The form is provided to merchants annually by the Alabama Department of Revenue for submission to district licensing officers upon registration. If the vehicle sold is currently titled in another state, the title number may be noted on the Alabama title application. STEP 2: Calculate your unadjusted tax bill Once you have determined the estimated value of your property, multiply it by the appropriate mileage rate for the area where you live.
Estimated value x mileage rate = unadjusted tax bill Millage rateMillage rate applied to different areas of Talladega County (1 mile = 1/10 of 1 penny) There are additional school mileage rates that vary by location. In Mobile and Pritchard, the additional mileage is 12.0, while outside these two cities, the additional mileage is only 4.0. Finally, there are additional urban property taxes in 10 cities in Mobile County. In the mobile city, the municipal rate is 7.0, which increases the total number of meals for the inhabitants of the city of Mobile to 63.5. Example 1: Private automobiles or vans used for personal and private purposes are Class IV property and are valued at 15% of market value. Property tax rates are presented in the “mills”, a unit equal to one tenth of a percent (so 1% equals 10 mills). Total prices vary depending on the location of the property. For 2020, the national mileage is 6.5, as well as local fees levied by counties, school districts and municipalities. In addition, there are some exceptions that can reduce your overall property tax burden. In the case of a residential property, the estimated value is 10% of the estimated value or market value.
For example, a home with an estimated value of $200,000 would have an estimated value of $20,000 (10% of $200,000). If this house were subject to a total basic tax rate of 30 mills, the total annual property tax would be $600 ($20,000 x [30/1000]). To calculate the exact amount of property tax you owe, you will need the estimated value of your property and property tax rates based on the address of your property. Please note that we can only estimate your property tax based on the average property taxes in your area. Typically, there are multiple rates in a given area, as your state, county, local schools, and emergency responders are partially funded by these taxes. In our calculator, we take the value of your home and multiply it by your county`s effective property tax rate. .