Business personal property includes material items such as machinery and equipment, tools, furniture and fixtures, among numerous other items. Tangible personal property is taxable to businesses for Alabama property tax purposes.
- Aircraft and avionics equipment is taxable for business personal property in the State of Alabama, as well as motor vehicle “add-on” equipment.
- The values published by the Department of Revenue in the Alabama Uniform Motor Vehicle Assessment Schedule for Ad Valorem Taxes represent market value of motor vehicle cab and chassis only and do not include equipment and/or bodies added after a vehicle leaves the manufacturer. The “add-on” equipment and/or bodies are components, which give the vehicle added value and they are taxed as business personal property.
Some example of business personal property are:
- add-on equipment to motor vehicles
- air conditioning-window units
- appliances in apartments and/or rental property
- auto-call and telephone systems
- bank vault doors
- booths for welding
- bowling alley lanes
- bucket elevators
- car wash equipment
- conveyor systems
- coolers-free standing
- exit alarms
- fire alarm systems
- racks and shelving
- safe deposit boxes
- towers and more
- Authority of tax assessor, duties of taxpayer.
Code of Alabama, 1975, Section 40-7-1
- Powers and duties, report personal property
Code of Alabama, 1975, Section 40-2-11
- Property appraised at fair and reasonable market value; basis of assessment for ad valorem taxes
Code of Alabama, 1975, Section 40-7-62
- Property to be appraised at fair market value
Code of Alabama, 1975, Section 40-7-15
- Taxpayer to attend appointment and return list of property; failure to furnish description of real estate
Code of Alabama, 1975, Section 40-7-4
- Publication of returns-confidentiality
Code of Alabama, 1975, Section 40-2A-10
- Demand against persons failing to make returns
Code of Alabama, 1975, Section 40-7-19
If you are a new business on October 1 and you have never filed a Business Personal Property Return, please click the link below to obtain a return form. Business Personal Property Return forms must be submitted by December 31 annually.
Business Personal Property Return
Please complete the form and
206 Grand Ave SW
Fort Payne, AL 35967
(256) 845 8517
If you have any questions, please call (256) 845 8515.
Business Already on File
All taxpayers that have submitted a Business Personal Property return in prior years will receive a return each year (in compliance with yearly reporting requirements) which must be completed and returned no later than December 31, in the same year.
The return you will receive from our office in September will provide on Part A, B, C, D, E, and F all data from your previous years submission. This information is provided to assist the property owner in adding, deleting, and/or changing any information necessary for reporting compliance as of the October 1 lien date.
OPPAL (Optional Personal Property Assessment Link)
OPPAL is a centralized online filing system for business personal property tax returns. All Alabama taxing jurisdictions will be required to accept business personal property tax returns filed using OPPAL; however, the system is optional to taxpayers. To file your Business Personal Property online click here.
Failing to File
Failure to make an assessment (return your Business Personal Property Return form) by the 3rd Monday in January will result in a ten (10 %) percent penalty and assessor fees added to the tax bill.
- Some of the factors that affect a property’s market value are the business type, type of equipment, acquisition year, and acquisition date.
- Business personal property is a Class II property and is assessed at 20% of the market value.
Delinquent business personal property taxes are handled differently, however. Beginning January 1, when the taxes become delinquent, the Revenue Commissioner must proceed to collect the taxes due or sell the property to satisfy the lien. Business personal property sold for taxes cannot be redeemed.