Current through Register Vol. 42, No. 11, August 30, 2024
Pursuant to §
40-9-1, Code of Ala.
1975, the tangible personal property owned by a business and
reported in accordance with Article 1 of Chapter 7, Title 40, to the extent of
forty thousand dollars ($40,000) in market value, is exempt from the
state-levied ad valorem tax.
(1) The
exemption provided may be applied to an account in which owners of tangible
business personal property are required to file form ADV-40 with the county tax
assessing official, in accordance with administrative rule
810-4-1-.12.
(2)
Adoption and Discontinuance
Requirements for Counties and Municipalities.
(a) A county or municipality may likewise
choose to exempt to the extent of $40,000 in market value of its tax levy on
tangible business personal property by resolution or ordinance. The ordinance
or resolution must be adopted at least 90 days prior to October 1, for taxes
that become due and payable on October 1 of the immediately following
year.
(b) A county or municipality
that previously authorized the exemption to the extent of $40,000 in market
value of its levy on tangible personal property may choose to discontinue the
exemption in a subsequent year by adopting a resolution or ordinance at least
90 days prior to October 1, for taxes that become due and payable on October 1
of the immediately following year.
(3)
Notification Requirements for
Counties and Municipalities.
(a)
Copy to County Tax Assessing Official. A copy of the
ordinance or resolution authorizing or discontinuing the exemption must be
provided to the county tax assessing officials in which the taxing jurisdiction
extends by August 1 of the same year. If a municipality's taxing jurisdiction
extends into more than one county, each county tax assessing official must be
provided with a copy of the ordinance or resolution.
(b)
Copy to the
Department. A copy of the ordinance or resolution authorizing or
discontinuing the exemption must be provided to the department no later than
October 1 of the same year. The department shall maintain a list of the active
resolutions and ordinances.
Author: Evelyn Pope
Statutory Authority:
§ Article 1 of Chapter
7, Title 40, Code of Ala. 1975, §§
40-2A-7(a)(5),
40-9-1.
