(1) Purpose - This rule is issued pursuant to
authority contained in Code of Ala. 1975, §
40-7-25.1,
40-7-25.2 and
40-7-25.3 relating to current use
value of eligible Class III property. This rule is issued for the purpose of
establishing the method and procedures of determining current use valuation of
single-family owner-occupied dwelling and historical buildings and
sites.
(2) Application -
Application for current use valuation of Class III property must be filed with
the county assessing official on or before January 1 in any taxable year.
If an application is for property consisting of five acres or
less, the tax assessing official may require the submission of additional data
as necessary to verify the use of the property.
The additional data may include site management plans from the
Alabama Forestry Commission, photographs and surveys or verification from the
county farm agent or United States Soil Conservation Service. If the current
use is granted upon application, the owners of such property shall not be
required to file subsequent application for the applicable property. New owners
of eligible Class III property must file a timely request for current use value
in order to be entitled to current use valuation.
(3) Methods and procedures for determining
current use valuation:
(a) Residential
property - The following procedures will be used by the county assessing
official in determining the current use valuation of the following property,
where a timely request has been filed:
1.
Comparative fair and reasonable market value will be used for single-family
owner-occupied dwelling where such property's location makes its "highest and
best use" something other than residential property (e.g. commercial or
industrial).
2. The land will be
valued according to comparable residential land value of property, excluding
that part of its value which is attributable to its possible use other than
owner-occupied dwelling. Improvement will be valued as residential
improvement.
(b)
Historical buildings and sites - Historical buildings and sites which are
listed in the national register of historic places in accordance with paragraph
3 of this rule will be valued according to current use as follows:
1. The improvement will be valued according
to replacement method of similar residential or commercial properties not
including architectural features which make it a significant
landmark.
2. The land will be
valued according to similar residential property or commercial property
depending on the use of the historical building site as other similar property
within the neighborhood, i.e., if being used for residential use, the land will
be valued according to similar residential lots in the neighborhood or if being
used for commercial purposes, the land will be valued according to land that is
being used for commercial use within the same neighborhood.
(4) Conversion - The
tax assessing official shall be notified no later than January 1 if the sale or
other disposition of property valued at its current use value is followed by a
conversion of the property to a use not qualified for current use valuation
within two years of the date of sale or other disposition, or, if property
valued at its current use value is converted to a use not qualified for current
use. The tax assessing official shall then revalue such property in accordance
with Code of Ala. 1975, Sections
40-7-15 and
40-7-25 and determine any
additional ad valorem taxes that would have been levied had the property not
had current use. The additional ad valorem taxes will be based on the sales
price of the property or its fair and reasonable market value at the time of
conversion, whichever is greater. The additional ad valorem taxes will be for
the three year period preceding the tax year beginning October 1 following the
conversion of the property, where applicable, and will become a lien on October
1 next succeeding the conversion.
(5) Notice of Current Use Value. The county
assessing official shall notify the owners of Class III property of the current
use values placed upon their property, and the owner has thirty days after
receiving such notice to submit to the assessor a statement outlining any
errors in such current use valuation.
The assessor shall review such statement and determine whether
the value satisfactorily represents the current use value of property. The
county official may require the owner to submit satisfactory evidence which
will indicate the proper soil group applicable to the property in question as
provided in Act 82-302, Section 1,(b) (1).
Author: Derrick Coleman
Notes
Ala. Admin. Code
r. 810-4-1-.01
Adopted May 25, 1982.
Amended: Filed November 2, 2004; effective December 7,
2004.
Statutory Authority:
Code of Ala.
1975, §§
40-2A-7(a)(5),
40-7-64, 40-11-1.5
