Alabama & Jefferson County, U.S.A.

Tax Assessment for Personal Property
Interest,Penalties and Fees on Escape Assessments

When personal property is located in a jurisdiction on 10/1 and not reported per the Code of Alabama in the time given, that equipment is subject to an escape assessment. The objective of an escape assessment is to bring a taxpayers tax burden up-to-date.
The assessment level for personal property is 20%. The penalty for non-reporting is 10%. The interest rate is 12% per year accrued from the date that the tax was first overdue. In addition the Tax Collector will charge a fee of $5.00 for each year for which an escape assessment is made

Example:
Equipment with a fair market value of $10,000 on 10/1/1998 was not reported for tax year 1999 by 12/31/1998 as required.
This was discovered and after the period of protest the escape assessment was made on 7/1/2000. 
Fair market value                            10,000
Times assessment level                          .20
                                             ------
Assessment before penalty and interest        2,000
Penalty = .10 x 2000                            200 
                                             ------
Assessment before interest = 2000 + 200  =    2,200

Months of interest: 
  1/1/1999 to 7/1/2000 = 18 months
  18 x 12% per year = 18% 

Interest to add = 2,200 x .18 =                 396           
                                            -------

Escape assessment                             2,596
                                            =======

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