1. What To Do When You
Buy Property
New property
owners often rely on their real estate
agent, attorney, or other representative
to properly record and assess their
property. The final responsibility is
still YOURS, as the new owner, to see
that all the necessary steps have been
completed.
The Steps
are:
-
Record your deed in the Probate
Judge's Office.
-
Assess the property in the Revenue
Commissioner's Office.
-
Claim any exemption do to you.
-
Make sure all of this is done no
later than December 31 for all
property purchased before October 1,
in order to receive a tax bill in
your name for the next year.
- If
your mortgage company has agreed to
pay your property taxes, make sure
we have the proper name and address
for the company.
-
Report any address changes promptly.
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2. What do I do if
I have added or removed improvements to
my property?
The law requires
that owners, or their agent, must call
or come by the Revenue Commissioner's
Office no later than December 31st 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
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, deck, carport,
garage, etc. However, such things as
re-roofing, minor repairs and painting
(normal maintenance type items) would
not require a reassessment.
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3. Property
Appraisal
Colbert County
has 42,000 separate parcels of land that
must be individually appraised for tax
purposes. Each parcel of land must be
described on a property record card (or
computer printout). Characteristics
about land and buildings are listed and
valued separately and become the basis
for fair market value.
Improvements to
the land (buildings, garages, etc) are
valued on a cost less depreciation
method based on fair market value.
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4. Assessment of
Property
Each taxpayer is
required by Alabama Law (Code 40-7-1) to
provide a complete list of all property
which is owned. The person acquiring
property is responsible for reporting to
the Revenue Commissioner a complete
legal description of the property and at
that time should claim any exemption he
or he may be eligible for. The property
owner must report any changes in
ownership to the Revenue Commissioner.
All assessments and bills are based on
ownership status as of October 1 each
year.
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5. Property
Classification
Class 3 |
Owner
occupied residential or farm
property |
10% of
appraised value |
Class 2 |
Commercial or rental and all
other property |
20% of
appraised value |
Class 1 |
Utility |
30% of
appraised value |
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6. Homestead
Exemption
A homestead
exemption is given to a property owner
if he or she owns a single family
residence and occupies it on the first
day of the tax year for which they are
applying.
Regular
Homestead is available to all citizens
of Alabama who own and occupy single
family residences, including
manufactured homes. The amount of
exemption shall not exceed $4,000.00
(four thousand dollars) in assessed
value for state taxes and not exceed
$2,000.00 (two thousand dollars) for
county taxes. If you are 65 years of
age or a permanently disabled homeowner
you may be eligible for a complete
exemption of property taxes on the
property where you reside. Your net
taxable income must be less than
$7,500.00 (seventy five hundred) for a
complete exemption up to $12,000.00
(twelve thousand) for a partial
exemption. It is the owners
responsibility to let us know if you
qualify.
Proof of age,
when required, may be established by a
driver's license, birth certificate,
insurance forms, or other legal
documents.
To prove
disability, you must furnish a statement
from two different sources as to your
disability. Physician's letters,
Veterans Administration and retirement
letters are all acceptable. Only one
proof is required if you have a letter
from Social Security.
Exemptions
should be applied for before December
31st of each year based on status to
qualify for the next taxing or billing
period. Renewals may be done by mail.
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7. Current Use
Owners of
farmland, pasture land or timber land
that is producing agricultural products,
livestock or wood products for sale to
the general public may apply for current
use exemption. This exemption allows
for property to be appraised at less
than fair market value when used only
for the purposes specified.
Any owner of
eligible property must make application
to the Revenue Commissioner's Office
prior to December 31st to receive the
exemption or any exemption for the
following year.
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8. Industrial
Industrial
Abatements are also available. To
qualify, the owner of the property must
file with the Revenue Commissioner an
application from the State Department of
Revenue and the local governing agency.
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9.
Timetable for Collection of Taxes
Taxes are
collected on the following schedule for
the year ending on September 30:
October
1 |
Tax Due |
January
1 |
Tax
becomes delinquent &
delinquent notices mailed. |
February |
Registered letters mailed
and court date set |
March |
Advertise all unpaid
properties in a local
newspaper |
April |
Tax
Sale |
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10. What methods
of payment can I use?
Taxes are due
every year the first of October and are
delinquent after December 31st, even if
you do not receive a notice.
Payments may
be made as follows:
-
You may come by the Revenue
Commissioner's office at the Colbert
County Courthouse between the hours
of 8:00 AM and 4:30 PM Monday
through Friday. Cash, personal,
check, money order, Visa and
Mastercard are accepted.
-
You may pay by mail, by check or
money order, but it must be in the
office by December 31st.
-
You my pay by phone, using your
MasterCardŽ or VisaŽ.
-
You may pay by E-Mail using your
MasterCardŽ or VisaŽ.
paytax@revenuecommissioner.com.
-
You can have your mortgage company
pay your tax bill through escrow
If you purchased
your property during the year, you need
to make sure the taxes are paid. The
tax bill will usually be in the previous
owners name. You are responsible for
taxes on all property you own,
regardless of how the property is
assessed or the tax bill my be listed.
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11. What happens
if I do not pay my taxes?
Each year the
taxes that are not paid are auctioned
off at a public sale at the County
courthouse. Individuals who come to the
sale and buy Tax Liens are issued a
"Certificate of Purchase". If no
individual buys the tax lien, a
Certificate of Purchase is made out and
delivered to the Alabama State Land
Agent.
The property
owner has three years from the date of
the tax sale to redeem the property from
the Revenue Commissioner by paying all
taxes and associated costs. If the
property was bought at the tax sale by
an individual and the owner does not
redeem it within three years from the
date of the tax sale, the individual who
purchased the property is entitled to a
tax deed.
After a tax deed
has been issued, redemptions can no
longer be made in the Revenue
Commissioner's Office, and the property
owner must either make and agreement
with the tax lien holder or resort to a
court of law to reclaim the property.
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12. What is
considered Business Personal Property?
All businesses
owning 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 prior to
December 31st each year. Failure to
submit this information by the deadline
may result in additional fees and
penalties.
Taxes become due
on October 1st, the same as ad valorem
tax on real property. Delinquent
personal property taxes are handled
differently, however. Beginning January
1st, when taxes become delinquent, the
Revenue Commissioner must proceed to
collect the taxes due or sell the
property to satisfy the tax lien.
Personal property sold for taxes cannot
be redeemed.
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13. I live in a
manufactured home, do I have to pay
taxes?
The Alabama
Manufactured Home Act (91-694) signed
into law July 18, 1991, changed the way
manufactured homes are treated for tax
purposes in Alabama. Under the Act,
those manufactured homes located on the
owner's property and not held for rental
or lease will be assessed to the owner.
All other manufactured home owners must
register and obtain a decal, the cost is
based on the size and age of the
manufactured home. Manufactured home
owners who do not own the land where it
is located must register within 30 days
of purchase and renew each year on
October the 1st. The become delinquent
after November the 30th.
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14. Do I pay a
Fire Fee?
Yes, if you are
outside the city limits!! All livable
dwellings, including manufactured homes,
outside the city limits of Tuscumbia,
Sheffield, or Muscle Shoals are charged
a yearly $30.00 fire fee. This law was
voted on and passed by the citizens of
Colbert County. The $30.00 fee is
divided between the Volunteer Fire
Departments of Colbert County.
There is also a
.10 (ten cents) per acre charge for
timber on anything over 10 acres; which
goes to the Alabama Forestry Commission.
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