How [r_ my T[x_s C[l]ul[t_^ in Sh_l\y County @l[\[m[?
In the State of Alabama, property tax is based on three factors:
Property Classification
Millage Rate
Exemptions
Step 1: Property Classification
Your taxes are calculated using your property's Assessed Value. This is determined by multiplying
the Appraised Value by the corresponding Property Classification, which is also known as the
Assessment Rate.
Appraised Value X Property Classification = Assessed Value
Classes of Property
Class
Description
Assessment %
I
All property of utilities used in the business of such utilities
30%
II
All property not otherw ise classified
20%
III
All agricultural, forest and single fam ily, ow ner occupied residential property, including ow ner occupied
residential m anufactured hom es located on land ow ned by the m anufactured hom e ow ner, and historic
buildings and sites
10%
IV
All private passenger autom obiles and m otor trucks of the type com m only know n as "pickups" or
"pickup trucks" ow ned and operated by an individual for personal or private use and not for hire, rent, or
com pensation
15%
Example:
Appraised Value
$100,000
x Property Classification
= Assessed Value
x
=
0.10
$10,000
How [r_ my T[x_s C[l]ul[t_^ in Sh_l\y
County @l[\[m[?
October 2012 Shelby County Millage Rates
Step 2: Millage Rate
1.
Once the Assessed Value of your property has been determined, multiply it
by the appropriate Millage Rate for the AREA
of the County in which
you live. Millage is the tax rate expressed in decimal form. Millage rates are
determined by the municipality, county and other taxing agencies.
GENERAL FUND
GENERAL FUND
2. ROAD & BRIDGE
A mill is one-tenth of one cent. (.001)
6.5
5.0
2.5
Total County
7.5
16.0
B. District 2 ‐ County Outside Hoover,
3.
100 mills = ten cents or $0.10
1000 mills = one dollar or $1
Assessed Value X Millage Rate = Unadjusted Tax
Bill
Example: Montevallo
x Montevallo Millage Rate = Unadjusted Tax Bill
x
0.051
=
$510
4.
1. State
2. County
3. School
4. Municipality
Total Millage:
14.0
6.0
C. District 2 ‐ County inside Hoover Dist2 ‐ Outside (A+B)
Total School
Dist2 ‐Inside Hoover (A+C)
Total School
Dist2 ‐Inside Bham, Vestavia (C.) Total School
30.0
22.0
16.0
Municipality
ALABASTER
CALERA
COLUMBIANA
HARPERSVILLE
HELENA
MONTEVALLO
PELHAM
VINCENT
WILSONVILLE
WILTON
LEEDS
HOOVER (6.5 Cty + 24 Cty Schools)
BIRMINGHAM (28.5 Cty + 7.7 Cty Schools)
INDIAN SPRINGS
VESTAVIA HILLS CHELSEA
WESTOVER
10.0
10.0
10.0
5.0
5.0
7.0
14.0
5.0
5.0
5.0
9.2
30.5
36.2
0.0
49.3
0.0
0.0
Birmingham & Vestavia Hills
10 mills = one penny or $0.01
$10,000
Total State
A.COUNTY WIDE
1 mill = $0.001
Assessed Value
2.5
6.5
7.5
30.0
7.0
51.0
How [r_ my T[x_s C[l]ul[t_^ in Sh_l\y County @l[\[m[?
Step 3: Exemptions
After determining your Unadjusted Tax Bill, subtract any Exemptions you might have. This gives you the Adjusted
Tax Bill.
A homestead exemption is defined as a single-family owner-occupied dwelling and the land thereto, not exceeding
160 acres. The property owner may be entitled to a homestead exemption if he or she owns a single-family
residence and occupies it as their primary residence on the first day of the tax year for which they are applying.
There are four different types of exemptions a home owner can claim in the State of Alabama.
1
Any owner‐occupa nt under 65 yea rs of a ge i s a l l owed homes tea d exempti on on s ta te ta xes not to exceed $4,000 a nd on county ta xes not to exceed $2,000 a s s es s ed va l ue, both excl udi ng a l l s chool a nd muni ci pa l ta xes .
Any owner‐occupa nt over 65 yea rs of a ge, ha vi ng a joi nt net a nnua l ta xa bl e i ncome of $12,000 or l es s , i s exempt from ta xes on the pri nci pa l res i dence. You mus t cl a i m thi s exempti on; proof of a ge a nd i ncome i s requi red.
Any owner‐occupa nt who i s reti red due to 100% tota l & perma nent di s a bi l i ty & your joi nt Federa l Ta xa bl e i ncome i s 3 $12,000 or l es s , you wi l l recei ve a tota l exempti on. You mus t cl a i m thi s exempti on a nd proof of di s a bi l i ty & i ncome i s requi red.
Any owner‐occupa nt who i s bl i nd a s defi ned i n s ecti on 1‐1‐3 provi des a homes tea d exempti on not to exceed $5000 of 4
a s s es s ed va l ue. You mus t cl a i m thi s exempti on a nd proof i s requi red.
2
Speci a l exempti ons (2, 3, a nd 4 a bove) mus t be fi l ed a nnua l l y wi th the Property Ta x Commi s s i oner.
Unadjusted Tax Bill - Exemptions = Adjusted Tax Bill
Example: Montevallo
Unadjusted Tax Bill
$510
- Exemption (basic) = Adjusted Tax Bill
‐
$41
=
$469