Alabama & Jefferson County, U.S.A.
Tax Assessment for Personal Property
Construction in Progress
CIP is equipment being built or being installed. The equipment is not ready for use but it is onsite. Some examples of CIP include concrete pads, electrical conduits, and crated or uninstalled equipment, and freight. In short, CIP includes costs which have been accrued to put a machine into service.
Line 9 and Part D of the Business Personal Property Return addresses thereporting of CIP.
Construction in progress is personal property and is assessable in Alabama. CIP is assessed as 20% of the cost with no factor for inflation or depreciation.
For example: Costs are accrued for the construction of a paint booth. These costs include $20,000 for the booth, $3,000 for a concrete pad and $2,000 for electrical wiring to total $25,000. The assessed value will be $25,000 X .2 to equal $5,000.
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