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
  • cranes
  • drapes
  • exit alarms
  • fire alarm systems
  • racks and shelving
  • safe deposit boxes
  • scales
  • signs
  • tanks
  • towers and more

Laws

All businesses located in the State of Alabama on October 1 (statutory lien date for ad valorem taxation) are required to submit a Business Personal Property Return for assessment of their business personal property assets.

New Business

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
mail to:
Tyler Wilks
Revenue Commissioner
206 Grand Ave SW
Fort Payne, AL 35967
fax to:
(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.

To determine the value of your business personal property, we use the guidelines set forth in the Alabama Personal Property Appraisal Manual issued by the Property Tax Division of the Alabama Department of Revenue. This ensures uniformity among all business personal property appraisals across the state.

  • 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.

Taxes become due on October 1, the same as ad valorem tax on real property.

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.

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.

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.

Business Personal Property Return Form

All furniture and fixtures as well as machinery and equipment purchased for and used by the business.

Yes, the local assessing official must receive a form every year no later than December 31 to report equipment that is owned and located in the county as of October 1.

Yes, all assets owned as of the October 1 lien date must be reported with acquisition dates and acquisition costs.  The depreciation schedule used in preparing income tax returns may be used.  However, the depreciation schedule must be adjusted for additions and deletions so that it will contain property owned by the business on the October 1 lien date.  Also, assets which are expensed rather than capitalized for income tax purposes and are not included on the depreciation schedule must be added to the taxpayer’s listing so that all personal property is reported.

The Property Tax Division of the Alabama Department of Revenue has established procedures in the Alabama Personal Property Appraisal Manual for determining market value and the assessed value of personal property.  All counties in the state of Alabama use this manual to achieve uniformity.  The type of business, type of equipment, acquisition year, and acquisition date are all used in figuring values.  For example, computer equipment depreciates more quickly than items of office furniture.  Business Personal Property falls into Class II property and is assessed at 20% of its market value.

If you fail to file a listing of your Business Personal Property, a field review will be conducted in accordance with the provisions of Title 40 of the Code of Alabama 1975.  During this field review, a listing will be made of your business personal property and this property will be assessed to you.

You will receive a tax bill the following October 1, just like ad valorem taxes on real property.  For instance, what you own this October 1st (2016) you will receive a tax bill for those items the next October 1st (2017).

Alabama Department of Revenue-Personal Property