PROPERTY TAXES

Real Property Taxes

Property (ad valorem) taxes are taxed on real and/or business personal property. Real property includes land and improvements (An improvement is anything that adds value to real property such as a house, swimming pool, chicken house, barn etc). Business personal property refers to items which are used in any business are movable or not permanently fixed to the land.
 

What To Do When You Buy Real Property

New property owners often rely on their title company, real estate agent or attorney to properly record and asses their property. The final responsibility lies with the owner to see that all the necessary steps have been completed. The steps are:

Record your deed in Probate Court.

 

Asses the property in the Revenue Commissioner’s Office.

 

Claim any exemption due you. Make sure all of this done no later than December 31 for all property purchased by October 1, in order to receive a bill in your name for the next year. Please report promptly all address changes.
 

Property Appraisal

The Revenue Commissioner is responsible for determining property value, which must, by the law, be set according to “fair and reasonable market value.” Your property is probably not for sale but the county appraiser must set the value of the property as if it were “sold” in an “arms length” transaction between a “willing buyer and a willing seller”, neither being under any pressure to buy or sell. If you feel your property value is incorrect you may file a written protest with the Marengo County Board of Equalization. Upon your appeal, if time permits, you will be contacted by the county appraiser to review your valuation. If, after this review, you are still not satisfied with your valuation, a hearing will be set for you to formally meet with the Board of Equalization to present information you feel justifies a change in value. Following this hearing, you will be notified of the decision of the Board of Equalization. You may appeal to Circuit Court within 30 days of their decision. In order to preserve your right to carry the appeal process to Circuit Court, taxes must be paid by December 31, or a bond filed in Circuit Court in double the amount of taxes due.

Property Classification

Assessment Rate:

Class I Property Owned by Utilities 30%
Class II All Other Property 20%
Class III Agricultural Property & Occupied Residential Property 10%
Class IV Private Passenger Vehicles 15%

You multiply the appraised value of property by the proper classification to determine the assessed value. Taxes are based on assessed value less any qualifying exemptions.

Assessment of Property

Each taxpayer is required by Alabama Law (Code 40-7-1) to provide a complete list of all their owned property, which is owned. The person acquiring property is responsible for reporting to the Revenue Commissioner a complete legal description of the property and should at the time claim any exemptions for which he or she is eligible. The Revenue Commissioner should be furnished a correct mailing address for all properties. The property owner must report any changes in ownership to the Revenue Commissioner.

All assessment and ownership and status as of October 1 of each year and are due and payable the following October 1.
 

Homestead Exemption

A Homestead Exemption 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. A Homestead must be requested, it is not automatic. The following are the four types of Homestead Exemptions:

Regular Homestead is available to all citizens of Alabama who own and occupy a single-family residence; including manufactured homes, as their primary residence and the property is not used for any other purposes. The amount of the exemption is $4,000.00 in assessed value for state property taxes and $2,000.00 in assessed value for county property taxes.

Homestead Exemption 2 is for any person who s permanently blind regardless of age or whether or not this person is retired. This homestead provides an exemption not to exceed $5,000.00 in assessed value, for such person who are blind as defined in section 1-1-3 in the Code of Alabama.

Homestead Exemption 3 provides a total exemption form ad valorem taxes on the principal residence and 160 acres adjacent thereto of any resident of this state who is retired because he or she is permanently and totally disabled or who is 65 years of age or older, provided the net taxable annual income for the person claiming the exemption and that of his or her spouse is $12,000.00 or less as shown on their latest Federal Income Tax return.

Homestead Exemption 4 is for persons over 65 or permanently and totally disabled, regardless of income. This exemption is for the total assessed value of state property tax and up to $2,000.00 of assessed value of county property tax. To prove disability, you must furnish a statement from two different sources. Exemptions should be applied for before December 31 of each year based upon status (owner occupied, age 65 or totally and permanently disabled) of property and claimant before October 1.

Marengo County Mileage Rate

 



The amount of taxes paid is determined by multiplying the appropriate millage rate by the assessed value less the property exemptions. The governing bodies of the state, county, cities and other taxing agencies set millage rates. A mill is one-tenth of one cent (.001). When all of the taxing authority’s millage requests are added together, you can calculate a total tax bill.

For example, an owner occupied residence valued at $100,000.00 would have an assessed value of 10% ($10,000.00). Multiply the assessed value ($10,000.00 x .0525 = $525.00). This is before any exemptions have been applied.

Business Personal Property

All persons, corporation, partnerships, etc. owning business personal property, aircraft, commercial mobile or portable units are subject to ad valorem tax. The property must be listed and assessed in the Revenue Commissioner’s Office after October 1, but no later than December 31 each year. Failure to make an assessment by the 3rd Monday in January will result in a 10% penalty and fees being added to the tax bill. All business personal property is appraised by the County Revenue Commissioner for taxes, based on the cost new and allowance for depreciation due to age.

Manufactured Homes

Manufactured homes located on the owner’s property and not held for rent or lease will be assessed on the real property tax rolls in the Revenue Commissioner’s Office. All others must be registered. Proof of ownership, along with a description that includes size, serial number, year made and model of the manufactured home should be brought to the Revenue Commissioner’s Office to make an assessment. The owner will receive a decal to display on the right front corner as proof that taxes are paid. A homestead exemption may be claimed if you own the manufactured home, the property and live there as your principle residence as of October 1. Proof of title and that sales tax paid must be provided at time of assessment/registration. All manufactured homes must be registered or assessed within 30 calendar days of purchase. Renewal of manufactured home registrations is October/November each year. There is a $10.00 penalty for late registration. Persons over 65 or permanently and totally disabled should request exemption information prior to registration/renewal.

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 Revenue Commissioner’s Office if he or she wishes to claim current use. The current use application may be obtained from the Revenue Commissioner’s Office at any time of the year, but under the law they must be filed with the Revenue Commissioner’s Office no later than December 31, for it to apply in the following tax year. After current use has been granted, the owner who made 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 will have to file a new application for current use or his or her taxes will be based on fair market value rather than current use values.

What To Do If You Add Or Remove Improvements

The law requires that owners, or their agent, must come to the Revenue Commissioner’s Office no later than December 31 to sign a new assessment officially reporting any improvements made to or any removal of structures or features from their property, on or before October 1 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 such things are re-roofing, minor repairs and painting, (normal maintenance type items), would not require a reassessment.

Timetable For Collection Taxes

Taxes are collected on the following schedule for the year that ended on September 30:

Method of Payment

Taxes are due every year the first of October and are delinquent after the 31st of December.

  • You may come to the Revenue Commissioner’s Office at the courthouse and make payment in person by cash, check, or credit/debit card

  • You may pay by mail with check or money order to:
    Sharon Barkley, Marengo County Revenue Commissioner P.O. Box 480578 Linden, AL 36748

  • You may pay online and a convenience fee will be applied. The online payment feature allows you to pay using your credit card, debit card or eCheck