Personal Property Tax Glossary - for the State of Alabama

Abatement

A reduction or elimination of a taxpayer's liability for tax. Taxes may be decreased for a length of time by a prior agreement with a municipal, county or the state government. Certain procedures must be followed to get the abatement. Abatements are granted primarily to encourage construction and equipping of factories and other large businesses within a specific jurisdiction.

"Add-on" equipment

Any item added to the cab and chassis of a motor vehicle, either by the original manufacturer or a secondary manufacturer. Add-on equipment includes but is not limited to: box type bodies, dumping mechanisms, wrecker rigs, refrigerated bodies, limousines, armoured trucks and vans, buses, cement mixer drums, refuse compactors, cranes, booms, propane and petroleum tanks, and flat beds. Other terms used to describe what is referred to in the Uniform Commercial Vehicle Body Valuation Guide as add-on equipment include: added value equipment, specialized equipment, truck equipment, and bodies.
Alabama Department of Revenue

Assessment

A decision made by the tax assessor as to the market value of a property.

Assessment level

A ratio determined by the tax authority as of what percentage of market value is to be taxed. In the State of Alabama the assessment level is 20% for personal property. To illustrate: A property with an assessed value of $1,000 is to be taxed. The district tax rate is 7%. The tax is calculated thus: $1,000 X .2 X .07 = $14.

Cab

The shelter or enclosure provided for a driver of a motor vehicle where the steering column and seats are located
Alabama Department of Revenue

Cab and chassis

Typically includes the frame (chassis), axles, wheels, engine, front sheet metal, and full cab. Original manufactures produce several types of cabs and chassis. This portion of a motor vehicle is valued in the Uniform Motor Vehicle Assessment Schedule issued by the Department of Revenue
Alabama Department of Revenue

Chassis

The metal framework of a motor vehicle, embracing the engine and related machinery, running gear, and wheels
Alabama Department of Revenue

Fair market value

Salvage Value

The value which remains when a property can no longer serve its intended purpose. This value may be only that of scrap metal or it may be the aggregate of its assembled parts which may be repaired and placed back into service. The State of Alabama places an estimate of a minimum of 5% of cost on salvaged items. To illustrate: A lathe was purchased for $10,000 in 1970. The lathe is worn out and can no longer cut metal accurately. It is disconnected and carried to a storage area. The minimum estimated value of this lathe is 5% X $10,000 = $50. If the lathe may be overhauled and placed back into service its value may be much more. The taxpayer should discuss such situations with the tax assessor.

Supplies

Stocks of goods intended to be consumed during the normal course of business. They do not include raw materials, finished goods, and items held for resale. Supplies are common types of property which are often misclassified and unreported by taxpayers. They render a service to the business but are not embodied in the final product. They include, but are not limited to: office and professional materials, wrapping materials, replacement and repair parts, clothing, lubricating oils, mail and shipping materials, selling and advertising materials, janitorial and cleaning materials, chemicals, pallets, fuels, and other consumable items.
Alabama Dept. of Revenue.

Tax Assessor

An elected county official in the State of Alabama charged by the Alabama Constitution with (among other duties) assessing property in the county for advalorem taxation. The Tax Assessor may have Deputies which are his/her agents as defined by the Alabama Constitution