GENERAL FORMULA & EXAMPLE
Fair Classification Assessed Tax Gross Homestead Net
Market Value X Assessment Ratio (%)* = Value X Levy (Millage Rate)** = Tax – Homestead Exemption = Tax
$50,000 X 10% = $5,000 X .0275 = $137.50 – $45.00 = $93.50
(The Formula Above Does Not Apply To Farm Or Forest Lands Receiving Benefit Of “Current Use” Values).
*Alabama Legislature Has Established Property Assessment Ratios As Follows:
Class I —– Utilities 30%
Class II —– All Other Property 20% – including 2nd home and investment properties
Class III —– Farm, Forest, and Owner Occupied Residential Property 10%
Class IV —– Motor Vehicles 15%
The above information is deemed reliable but subject to change!