Property (ad valorem) taxes are taxes on Real and/or Business Personal Property. "Ad valorem" means "according to value". The Revenue Commissioner is responsible for determining property value which must, by law, be set according to "fair and reasonable market value". All taxable property in Alabama is classified and assessed in the following ratios of assessed value to fair and reasonable market value (or, with respect to certain Class III property, at current use value).
- Class I…..Property of utilities used in their business-30%
- Class II…..Property not otherwise classified (generally businessor commercial property)-20%
- Class III…..Agricultural; forest; single-family, owner-occupied residential property; and historic buildings and sites-10%
- Class IV…..Private passenger automobile, and small trucks (pickups) for personal use and not for hire, rent or compensation-15%
Certain exemptions apply to those who are totally and permanently disabled. Homestead exemptions for persons over the age of 65 according to adjusted gross income, or a one-time Claim/Validate for persons under age 65.
The following ad valorem taxes are currently being levied on all taxable property in Baldwin County by the following taxing authorities at the following rates in mills (1 mill = .001 of assessed value)
- State of Alabama: 6.5 mills
- Baldwin County-General/Road & Bridge/Fire: 9 mills
- Baldwin County Schools: 12 mills
- Total tax rate: 27.5 mills
Properties lying within the corporate limits of municipalities are subject to an additional tax as follows:
ALABAMA TAX INFORMATION
- Gulf Shores: 5 mills
- Orange Beach: 4 mills
- Ono Island is not within any corporate limits
Tax burden per person for personal income, property, general sales, auto registration, estate and gift taxes showed Alabama to be among the lowest of all 50 states and the District of Columbia. The tax per capita as percent of personal income is only 9.4%.
For detailed information contact the Alabama Department of Revenue, Individual and Corporate Tax Division, 334-242-1000. In most instances, local governments in Alabama do not levy city, town or county income taxes.