Business Personal Property Tax (Ad Valorem) – Looking Forward

Business Personal Property Tax Return deadlines are quickly approaching! Take a look below at some of the things to consider in the coming weeks.

What is the Business Personal Property Tax (Ad Valorem)?

Business Personal Property tax is an Ad Valorem tax that is assessed at the County level in Alabama. These taxes are calculated annually and are based on the assessed value of an item (the personal property). Businesses must report assets owned as of the beginning of the tax year (October 1 in Alabama). The County will determine the amount of business personal property tax owed using the original cost of the asset, its age, and the County’s personal property tax rates.

Key dates

• October 1: Assessment date (first date of the new tax year).
• December 31: Ad Valorem tax returns are due for the next year, tax payments are due for the current year.
• January-October: Tax notices are mailed; appeals are due 30 days from the date of the notice.

What should I do right now?

Watch your incoming mail – bills for the Ad Valorem tax returns that were due December 30, 2020 should be arriving in the coming weeks, along with the blank return for the 2022 tax year.

Now is also a good time to start updating your property listing. Property that was purchased since the last return was completed should be added to the list, and property that was sold or disposed of before September 30, 2021 can be marked as sold/disposed of on your 2022 Business Personal Property Return.

Don’t forget!

Remember, even items below your capitalization policy threshold for depreciation must be included on this return. Common items below the IRS threshold include desks, furniture, monitors, computers, small electronics, and even the art on your walls! It may seem small compared to your IRS Capitalization Policy, but the County still wants you to report it.

BMSS can help

Do you have questions about your Business Personal Property Tax Return, or want help with filing? We file Business Personal Property Tax Returns in a variety of counties and would love to work with you. Contact your BMSS professional today or visit our website for more information.