Understanding Business Personal Property Tax in Alabama

Businesses are required to file a business personal property tax return annually for the county or counties where your business is located if your business owns tangible assets that are not permanently affixed to real estate.  Keep in mind that if your business operates in other states, you may have an obligation to file in each state in which you operate, and their laws and deadlines will vary.

Important Dates

– October 1: Property lien (assessment) date

– October 1 – December 31: Filing period for personal property returns

– January: Penalties begin for late filings

– Spring/Early Summer: Valuation notices are mailed

– 30 Days From Notice Date: Deadline to file protest

– October 1 (following year): Tax payments are due

– December 31 (following year): Taxes become delinquent

Filing Requirements

Businesses must submit a detailed itemized listing of all taxable assets, including acquisition dates and costs for property owned by the business on October 1st.  Business personal property includes office furniture and fixtures, computers and electronics, machinery and tools, add-on vehicle equipment, and aircraft and avionics.  Even minor property (old computers, monitors, small furniture) that could be expensed for federal income tax purposes must be reported. If you retired, sold, or disposed of business personal property before September 30 (i.e. before the tax year ends), you can exclude those items from the rendition.

Valuation and Payment

Once a business personal property return is filed, the county appraiser reviews it and assigns values using the state’s appraisal manual. A Valuation Notice is then mailed (usually in late spring or early summer) showing the county’s determination of market and assessed value. If the business disagrees, there are 30 days from the notice date to file a protest, which may lead to a review or a Board of Equalization hearing. The county also performs site inspections on selected taxpayers to verify assets. Once values are finalized, the county prepares and mails the tax bill in the fall. Payment is due October 1 of the following year and becomes delinquent after December 31 if not paid.

Need Help?

Contact Wilkins Miller today if you have any questions or would like assistance with your filings.