Personal Property

Henry County has an Alabama Certified Personal Property Appraiser on staff who is knowledgeable and well trained in the expertise of personal property appraisal.

What is Personal Property?
Who is required to report Personal Property?
When should Personal Property be reported?
If I do not receive a Business Personal Property Rendition form in the mail. Where can I get one?
What are some examples of the kinds of things I list on the rendition forms?
I have furniture and/or equipment that I have brought from home or someone gave me, do I have to list it on my Rendition?
What gives the Revenue Commissioner authority to tax my business?
Am I required to fill out and return the Business Personal Property Rendition form every year even though my equipment is the same as last year?
Most of my business equipment has been fully depreciated on my income tax return, do I still list these items on the Business Personal Property Return?
Can I file my Business Personal Property Renditon form electronically?
How does the Revenue Commissioner's office value my business personal property? 
What if I fail to comply with the law?
When will I receive a tax bill to pay the ad valorem taxes on my business equipment?
What happens if I do not pay the taxes on my personal property?
I already paid tax on my business equipment when I purchased it, why am I being taxed again?
Can my business be audited by the Revenue Commissioner? 
O.K., I understand, but how can I insure that I have complied with the law?





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What is Personal Property?

Personal Property is property not permanently affixed to or part of the real property, such as furniture, and/or equipment. Everything that is not real estate is personal property.

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Who is required to report Personal Property?

Every individual, firm, or corporation owning business personal property in Alabama on October 1 of each year. Any individual, firm, or corporation owning aircraft based in Alabama, regardless of use, and any individual firm or corporation that purchases a permanent trailer tag for a tractor trailer, truck trailer, or semi-trailer.

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When should Personal Property be reported?

A complete itemized listing of all personal property owned on October 1 must be provided to the local assessing official in the taxing jurisdiction in which the property is located. This list must be submitted between October 1 and December 31 of each year to avoid penalty. The list must include a description of the property along with its acquisition date and cost.

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If I do not receive a Business Personal Property Rendition form in the mail. Where can I get one?

You are welcome to contact our office and we can mail or fax a form to you or you can download & print by clicking on the link below.

BUSINESS PERSONAL PROPERTY RENDITION FORM

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What are some examples of the kinds of things I list on the rendition forms?


Basically all furniture and fixtures as well as machinery and equipment purchased for and used by the business should be listed on the rendition form.

Legislation requires all businesses purchasing permanent trailer tags from the License Official, to list the trailer as personal property on a 'Business Personal Property Rendition Form', and pay the ad valorem tax to the Tax Collecting Official

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I have furniture and/or equipment that I have brought from home or someone gave me, do I have to list it on my Rendition?

Yes. If you use it in your business, it has to be reported.

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What gives the Revenue Commissioner authority to tax my business?

The State of Alabama under Title 40, Code of Alabama 1975, requires that every person report to the county taxing official each year a complete list of all business personal property owned by the taxpayer on October 1 of the tax year. Copies of the Code of Alabama are available at local public libraries.

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Am I required to fill out and return the Business Personal Property Rendition form every year even though my equipment is the same as last year?

Yes, our office must receive a form every year no later than December 31 to report equipment that is owned and located in the county as of October 1.

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Most of my business equipment has been fully depreciated on my income tax return, do I still list these items on the Business Personal Property Return?

Yes. All assets owned as of the October 1 lien date must be reported with acquisition dates and acquisition costs. The depreciation schedule used in preparing income tax returns may be used. However, the depreciation schedule must be adjusted for additions and deletions so that it will contain property owned by the business on the October 1 lien date. Also, assets which are expensed rather than capitalized for income tax purposes and are not included on the depreciation schedule must be added to the taxpayer's listing so that all personal property is reported.

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Can I file my Business Personal Property Renditon form electronically?

Yes. Legislation passed in 2014 created the Online Personal Property Assessment Link, or OPPAL. Beginning October 1, 2016, any taxpayer filing a Business Personal Property Return in the State of Alabama will be able to file electronically using the state's web portal at NO CHARGE.

 


How does the Revenue Commissioner's office value my business personal property?

The Property Tax Division of the Alabama Department of Revenue has established procedures in the Alabama Personal Property Appraisal Manual for determining market value and the assessed value of personal property. All counties in the state of Alabama use this manual to achieve uniformity. The type of business, type of equipment, acqusition year, and acquisition date are all used in figuring values. For example, computer equipment depreciates more quickly than items of office furniture. Business Personal Property falls into Class 2 property and is therefore assessed at 20% of its market value.

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What if I fail to comply with the law?

If you fail to file a listing of your Business Personal Property, a field review will be conducted in accordance with the provisions of Title 40 of the Code of Alabama 1975. During this field review, a listing will be made of your business personal property and this property will be assessed to you. Consistently failing to return the Rendition form will result in non-filing penalties being assessed to bring your assessment current as if you have purchased property each year. That is why it is so important to return your Rendition form every year.

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When will I receive a tax bill to pay the ad valorem taxes on my business equipment?


You will receive a tax bill the following October 1 st, just like ad valorem taxes on real property. For instance, what you own this October 1 you will receive a tax bill for those items the next October 1.

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What happens if I do not pay the taxes on my personal property?

If you own real estate in this county, Alabama Title Code 40 gives the Revenue Commissioner authority to deny a tax payment on real property, until said taxpayer has first paid taxes on all personal property listed.

If you do not own real estate in this county, the personal property will be sold in compliance with Section 40-5-14 Title Code 40 and there will not be any Redemption rights.




I already paid tax on my business equipment when I purchased it, why am I being taxed again?

When you purchased the equipment, you paid sales tax and this is ad valorem tax or "ownership" tax that is solely based upon value. It is based neither upon the ability of the owner to pay nor upon the amount for which the property last sold. Ad valorem tax on business personal property has been a law in the state of Alabama since 1975 and is a law in many other states as well.

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Can my business be audited by the Revenue Commissioner?

Yes, and it will be. Henry County is currently following Alabama Department of Revenue guidelines to regularly audit businesses that have personal property.

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O.K., I understand, but how can I insure that I have complied with the law?

You are encouraged to contact our certified personal property appraiser, Pam Dyson. She will help you in any way she can. She can be reached at (334) 585-3043 Ext. 263.