In accordance with Alabama law it is the duty and responsibility of this Department to appraise all business personal property, based on the original cost with allowances for depreciation due to age. To determine the value of business personal property, we use the guidelines set forth in the Alabama Personal Property Appraisal Manual issued by the Department of Revenue Ad Valorem Tax Division. Utilization of standardized methods ensures uniformity among all business personal property appraisals across the State.
Some factors which affect a property’s market value are the business type, type of equipment, acquisition year and date.
In Alabama, business personal property is categorized as Class II property with an assessment level of twenty (20%) percent of market value.
Some examples 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
FILING/REPORTING BUSINESS PERSONAL PROPERTY
All businesses located in the State of Alabama on October 1st (statutory lien date for ad valorem taxation) are required to submit a Business Personal Property Return for assessment of their business personal property assets.
Please contact our office for assistance in filing/reporting your Business Personal Property ADV-40 form.