Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-4-1 - AD VALOREM TAX › Section 810-4-1-.18 - Synchronization Of Taxation And Registration System - Assessment Procedures

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
PURPOSE
- This regulation is issued
			 pursuant to the authority contained in Section
			 40-2A-7(a)(5) and Section
			 40-7-64,
Code of Ala. 1975
, for the purpose of establishing
			 guidelines and procedures for assessing motor vehicles purchased on or after
			 January 1, 2000 for ad valorem tax purposes and to provide for synchronization
			 in the collection of ad valorem taxes with motor vehicle registration fees on a
			 current year basis.
(2)
PROCEDURES
- To ensure the equitable
			 taxation of motor vehicles in Alabama, the Property Tax Division of the Alabama
			 Department of Revenue shall determine the market value of vehicles using
			 industry and other market sources having knowledge of average retail value by
			 make, model, and type of motor vehicles. The market value shall be 89% of the
			 determined average retail value of the motor vehicle in order to account for
			 pollution control equipment, depreciation, and the condition of the vehicle.
(a) Valuation for ad valorem tax assessment
			 purposes shall be based on the fair and reasonable value of the motor vehicle
			 on October 1. The October 1 valuation shall be used for calculating ad valorem
			 taxes in the following calendar year. When a value is unavailable, the market
			 value for new models shall be determined annually as follows: the Department of
			 Revenue shall conduct a study on all vehicle types to determine the appropriate
			 relationship of the previous year's first average retail value of each vehicle
			 type to the previous year's published manufactures suggest retail prices
			 (MSRP). This study will include:
1. Compiling
			 the vehicle identification information for all new model year motor
			 vehicles.
2. Reviewing data
			 supplied by a nationally recognized publisher of vehicle value information to
			 measure the relationship of each motor vehicle's previous year's average retail
			 value at the first publication of average retail value by the publisher in
			 relation to the each motor vehicle's previous year's manufacturer's suggested
			 retail price.
(i) This relationship will be
			 quantified as a percent good for each individual vehicle for which that data is
			 available.
(ii) This relationship
			 will be quantified by manufacturer using a median statistic.
3. During the annual vehicle
			 valuation process, the current year's market value estimate for a new model
			 year motor vehicle, when an average retail value is unavailable, will be
			 determined using the following formula:
(i)
			 (MSRP X Adjustment factor {(2)(a) above} X 89% = estimated market
			 value.
(ii) The estimated market
			 value determined above will be rounded down to the nearest $100.
(iii) If there is a new motor vehicle model
			 for which the Department has no reliable data to determine an individual
			 adjustment factor, then, the median manufacturer adjustment factor {(2)(b)
			 above} will be used to estimate the current year's estimated market
			 value.
4. When a motor
			 vehicle is one year old in the Department vehicle database, the average retail
			 value (adjusted by 89%) will be the market value estimate to be utilized by
			 each county in assessing the motor vehicle.