Assessor Department

What to do when you buy real property.

If you have purchased new property, please take the following steps to ensure your property is properly assessed and you receive your proper exemption:

1. Step 1: Record your deed in the Probate Office.

 

2. Step 2: Bring a copy of the recorded deed to the Tax Assessor’s Office to claim any tax class adjustments and/or exemptions for which you may be entitled.

 

3. Step 3: Report all ownership and/or address changes promptly to the Tax Assessor. *This includes reporting the death of an owner.

 

Why does it seem to take so long for the tax bill to reflect the change of ownership from seller to buyer?

In Alabama, the tax year is Oct. 1 – Sept. 30 and we pay property taxes a year in ARREARS. Alabama law provides that the tax bill due on Oct. 1 of any given year must be in the name of the owner whose name was on record for the property on October 1st the year before. (For example, if you purchased property in January of this year, the tax bill you receive will still list the previous property owner’s name.) The current property owner is responsible for paying taxes on all property, regardless of who the bill is addressed.

 

What is homestead exemption?

Homestead exemption is a statutory exemption that must be timely claimed or lost. It is a tax break a property owner may be entitled to if he or she owns a single-family residence and occupies it as their primary residence on the first day of the tax year for which they are applying. There are several different homestead exemptions, but none should exceed 160 acres.

Homestead Type Chart     

Do I have to resign for homestead exemption every year?

Currently, only individuals receiving an exemption based on age and income or total exemption for disability must resign each year.

 

I am 65 years old or older – do I still have to pay property taxes?

According to Act 2013-295, owners who homestead their property and are 65 or older may be exempt from all tax on the primary residence and up to 160 acres when the annual taxable income for the person claiming the exemption and that of his or her spouse (on the most recent federal income tax return) is not more than $12,000.00. Owners must sign up to receive this exemption and reclaim the exemption each year between the dates of October 1st – December 31st.

 

Income Qualifications

 

Contact the Tax Assessor’s Office for more information regarding other age 65 or older exemptions if you do not qualify for the one listed above.

 

I am on disability – do I still have to pay property taxes?

According to Act 2013-295, owners who homestead their property and were retired because he or she is 100% permanently and totally disabled may be exempt from all tax on the primary residence and up to 160 acres. Owners must provide proof of disability when they sign up to receive this exemption and individuals must reclaim the exemption each year between the dates of October 1st – December 31st.

 

Proof of Disability Requirements

 

Physicians Affidavit

 

Contact the Tax Assessor’s Office for more information regarding other disability-based exemptions if you do not qualify for the one listed above.

 

What is current use?

Owners of 5 acres or more of farmland, pastureland or timberland that is producing agricultural products, livestock or wood products may apply for current use exemption. This exemption allows for property to be assessed at less than market value when used only for the purposes specified. Any owner of eligible property must make a formal application to the Tax Assessor’s Office if he or she wishes to claim current use. All owners must sign an application. You may obtain a current use application at any time of the year, but under the law they must be filed with the Tax Assessor’s Office no later than December 31, for it to apply in the following tax year. After current use has been granted, the owner(s) who made the application for current use does not have to re-apply for subsequent years. However, if the property ownership is transferred or the name has been changed by deed or will, the new owner(s) will have to file an application for current use or his or her taxes will be based on fair market value rather than current use values.

 

Current use must be removed from the property at least 2 years prior to changing the use of the property. Otherwise, the owner on October 1 after the conversion will be assessed for no more than 3 years (called a roll back) at the market value or selling price, whichever is greater.

 

Qualifications & Application Procedures

The qualification and application procedures for current use valuation of property

in lieu of fair and reasonable market valuation is set out in Title 40-7-25.1 and 40-

7-25.2. A property must be Class III – 5 or more acres (defined as all agricultural,

forest, and residential property, and historic buildings and sites) in order for

property to qualify for current use valuation:

 

o             Agricultural and Forest Property: all real property used for raising,

harvesting, and selling crops or for the feeding, breeding, management,

raising, sale of, or the production of livestock, or for the growing and sale

of timber and forest products.

o             Residential Property: only real property, used by the owner thereof

exclusively as the owner’s single-family dwelling.

o             Historic Buildings and Sites: regardless of the use to which such property

is put, all buildings or structures (1) determined eligible by the state historic

preservation officer for listing on the National Register of Historic Places;

or (2) located in a registered historic district and certified by the United

States Secretary of the Interior as being of historic significance to the district.

 

Taxpayers interested in obtaining current use valuation must make an application

with the county assessing official by December 31st of any given year. The

application requires a description of the property and a general description of the

use to which the property will be put. All owners must sign the application. The

tax assessing official may request any additional information to aid in determining

whether the real property qualifies for current use value. Once current use

valuation is granted by the county assessing official, the owner of the property is

not required to repeat the application for the subsequent years. Following the

sale or other disposition of property valued at current use value, the new owner

must apply for current use valuation by December 31st, otherwise, the property

will be valued at its fair and reasonable market value.

Note: If you apply for current use between January 1 and December 31, 2024,

you will be applying for the 2025 tax year. Therefore, if property qualifies, current

use values, per your application, will not be reflected until the 2025 tax bill

becomes due 10/1/2025. Remember, all owners must sign the current use

application.

 

 

 

Rollbacks

Class III property that has been assessed at a current use value in lieu of fair and

reasonable market value, may be subject to the rollback provisions in Title 40-7-

25.3 if either one of the two following conditions are met:

O            If the sale or other disposition of property valued at its current use value is

followed by a conversion of the property to a use not qualified for current

use valuation, within two years of the date of sale or other disposition, then

the rollback provision will apply.

o             If taxable property valued at its current use value is converted to a use not

qualified for current use valuation, then the rollback provision will apply.

Once a determination has been made that the rollback provision applies to

the property, the assessing official must calculate the amount of taxes that

would have been payable on the converted property if the sales price or

the fair and reasonable market value, whichever is greater, had been used

instead of the current use value. The calculation of additional taxes is for

the three years preceding the tax year beginning on the October 1

following the conversion of the property. The amount shall be additional

taxes to be collected on first assessments prepared after the conversion of

the property.

 

Title 40-7-25.3 states that the rollback will be for a three-year period prior to the

October 1 following the conversions. If the property subject to conversion from

current use were subject to current use valuation for less than three years, then

the rollback would cover only the actual number of years less than three years

that the property was subject to current use.

When a rollback becomes apparent, the sales price or market value, whichever is

higher, will be used to calculate the additional taxes due. The assessed value will

then be calculated using the Class III assessment ratio of 10%, not the 20%

Class II assessment ratio.

Additional taxes resulting from a rollback are charged against the owner of record

of the property on the October 1 following the date of conversion. Therefore, the

person that caused the conversion and rollback may not be the person that

receives the additional tax bill on the rollback if the property changed ownership

between the conversion and the lien date of October 1. It will be between buyer

and seller to determine who will pay.

 

Current Use Application

 

If I have a manufactured home on my property, am I required to have a current decal?

All manufactured homes (formerly mobile homes) must have a current decal to show compliance with ad valorem taxes. In order for the decal to be issued when property taxes are paid, the mobile home and land must be in the same name(s) as the land and not be rental property. If the mobile home and land are in different names or if it is rental property (unless it’s listed on the deed) the decal must be purchased in the License Commissioner’s Office. If you purchase property with a mobile home located on it or if you add a mobile home to any property and the mobile home is older than twenty (20) years from the current calendar year, a copy of the Bill of Sale is needed. For newer models, a Title/Application for Title is needed.

 

What to do if you add or remove improvements

The law requires that owners, or their agent, must come to the Tax Assessor’s Office no later than December 31st, to sign a new assessment officially reporting any improvements made or removal of structures or features from their properties completed on or before October 1st of that year. Examples of improvements that are assessable would include new structures or additions, swimming pools, extensive repairs, remodeling, or renovations: adding a fireplace, extra bath, patio, deck, carport, garage, etc. However normal maintenance type items would not require a reassessment.

 

I think my property value is incorrect – what can I do?

Any taxpayer that feels the value on their property is incorrect may file a protest letter with the Tax Assessor’s Office or the Appraisal Department. The taxpayer will be contacted when the protest is reviewed and a hearing with the Board of Equalization will be set up at the time of.

 

 

If a property owner is now deceased what happens to the property?

A surviving owner, if applicable or an heir to the property should come to the office in a reasonable amount of time to remove the deceased owner(s) name(s). If there is a probated Will, please bring it in at that time.

 

How can I add / remove a name on my property?

Typically, a new deed will be needed for adding or removing names on a property. Depending on the situation other legal documents may be allowed.

Please contact the Tax Assessor’s Office for further information.

 

Do I need to contact the Tax Assessor’s Office if I move?

Yes, you should contact the Tax Assessor’s Office as soon as possible to report any changes regarding property in Dallas County.