03/24/2026
Just a reminder, if you own a business please review the information below:
Reporting Personal Property
Every individual, firm, or corporation owning business personal property in Alabama on October 1 of each year is required to report personal property. Any individual, firm, or corporation owning aircraft based in Alabama, regardless of use, and any individual firm or corporation that purchases a permanent trailer tag for a tractor trailer, truck trailer, or semi-trailer is required to report them as personal property.
A complete itemized listing of all personal property owned on October 1 must be provided to the local assessing official in the taxing jurisdiction in which the property is located. This list must be submitted between October 1 and December 31 of each year to avoid penalty. The list must include a description of the property along with its acquisition date and cost.
Aircraft based in Alabama are subject to property tax and are assessed by ALDOR. Property tax is collected by the county in which the aircraft is based. Aircraft property tax returns should be filed annually between October 1 and December 31. Currently, electronic filing of aircraft returns is not available. Fillable returns are available on the Forms tab of the ALDOR website, form number ADV-ACR45. For assistance with filing aircraft returns, call 334-242-1525.
Personal Property Categories
o Intangible personal property includes an owner’s representation of rights to property such as shares of stock, annuities, patents, market certificates, etc. Intangible personal property owned by businesses is not taxable under the property tax laws of this state.
o Tangible personal property includes material items such as machinery and equipment, tools, furniture and fixtures, and other items used in a business activity. Tangible personal property is taxable to businesses for Alabama property tax purposes. Aircraft and avionics equipment is taxable as personal property in Alabama, as well as motor vehicle add-on equipment. The values published by ALDOR in the Alabama Add-On Guide represent the value of motor vehicle cab and chassis only and do not include equipment or bodies added after a vehicle leaves the manufacturer. The add-on equipment or bodies are components, which give the vehicle added value, and they are taxed as business personal property.
Tangible Personal Property
Personal property is considered Class II property and is taxed at 20 percent of market value. Market value multiplied by 20 percent equals the assessment value, which is then multiplied by the appropriate jurisdiction’s millage rates to determine the amount of tax due. Alabama publishes a personal property appraisal manual to serve as a reference guide to Alabama’s assessing and appraisal personnel so that basic methods and procedures can be followed and equity in statewide property appraisal can be ensured.
Section 40-7-22 Procedure by Assessor Upon Failure to Procure List.
Having failed to procure on verbal or written demand from any delinquent his list of taxable property on or before the third Monday in January, the assessor shall ascertain from inquiry or otherwise the property and other subjects of taxation upon which such person is liable to be taxed and shall list and make return thereof upon the proper blank and note upon such returns the failure of the owner after notice to make such return and the accrual of a penalty of 10 percent of the taxes to be assessed thereon.
Section 40-7-25 Estimation of Fair Market Value; Assessment List; Notice; Objections.
(a)(1) Except as provided in subdivision (2) or as otherwise provided by law, the assessing official, from information entered on the tax return list and from all other information known to him or her or which he or she may procure, shall proceed to ascertain what, in his or her best judgment, is a fair and reasonable market value of each item of property returned by or listed to any taxpayer.
