Property (ad valorem) taxes are taxes on real and/or personal property.  Real property includes land and improvements.  Personal property refers to items which are movable or not permanently fixed to the land.

The Revenue Commissioner's Office is responsible for determining property value which must, by law, be set according to "fair and reasonable market value."

Real Property

Real property generally includes land and permanently affixed improvements to the land.  Code of Ala, 1975, Section 40-1-1.

Personal Property

Personal Property is generally defined as property not permanently affixed to or part of the realty. Generally, everything that is not real estate is considered personal property. To differentiate between real property and personal property, the Revenue Commissioner's Office must consider the manner in which property is attached to or secured at the location, and purpose for which the property is used.

Personal property has two categories: 

Tangible Personal Property and Intangible Personal Property. Tangible Personal Property includes material items such as machinery and equipment, tools, furniture and fixtures, and numerous other items. 

Intangible Personal Property includes an owners representation of rights to property (shares of stock, annuities, patents, market certificates, etc. ...).

All persons, corporations, partnerships, including leasing companies, etc., owning personal property and/or aircrafts, are subject to ad valorem tax. The property must be listed and assessed in the Revenue Commissioner's Office. Personal property is defined as all types of equipment, light and heavy, furniture and fixtures, computer or leasehold improvements used in the operation of a business. Failure to make a return by the third Monday in January will result in a 10% penalty and fees being added to the tax bill.