Personal property is any property that is not real property. Examples include but are not limited to computers, software, furniture, airplanes and machinery. There are numerous exceptions as to whether personal property is subject to taxation. These exceptions are found in the Code of Alabama, Title 40.
Alabama law requires the taxpayer to list all personal property located in Alabama on 10/1 of each year and send the list to the county in which the property is located. This is due by 12/31. Failure to report personal property will result in fines, penalties and interest. Numerous county and state employees are committed to ensure that personal property is assessed.
When the return from the taxpayer is received, employees of the county calculate the fair market value of the property. In Jefferson County this is done by the Tax Assessor's office. Alabama currently uses a 20% assessment level for personal property. This means that the fair market value is multiplied by .2 to produce the property assessment.
A notice of assessment is mailed to the taxpayer usually at the end of August of the following year to give the taxpayer the opportunity to protest the amount of assessment.
After the protest period, the assessment roll is transmitted to the Tax Collector who will be responsible for collection of the tax. The assessment is multiplied by the tax rate to produce the tax amount. The tax rate varies depending on the jurisdiction.
The tax must be paid by 12/31. Tax Agents in Jefferson County are noted for their zealous committment to tax collection.