What is real property and what does it have to do with my annual real estate taxes?

Real Property:
Real property is defined by statue and is synonymous with REAL ESTATE.  Real estate is the physical land and appurtenances attached to the land, i. e. structures.  (RESIDENTIAL and COMMERCIAL)

The assessment process plays an important role in local government.  Equitable assessments assure property owners that they are asked to pay only their fair share of the cost of operating libraries, schools, police protection and other necessary governmental services.

Alabama statues require the County Revenue Commission to maintain all real estate values.  Staff appraisers visit properties when new to measure and inventory construction components.  Staff appraisers also review for changes based on an application of a building permit, recent sales, at taxpayer request, etc.

Purpose of Appraisals:
The purpose of the appraisal is to estimate the fair market value of the real estate for administering ad valorem tax burden fairly and equitably.  The effective date of appraisal by statue is October 1st of each calendar year.

Definition of Market Value:
"Market Value" is defined as the most probable price, expressed in terms of money, that a property would bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affect by undue stimulus.

Analysis of Market Values:
Once market values have been calculated based on information gathered by the property appraiser, the values are analyzed to determine how accurate and equitable they are.  The property appraiser does not create market value.  The buying and selling of property by the general public establishes the value of property in the real estate marketplace.

A comparison of assessments to sales prices is performed to determine ratios, which are then used to measure the levels and uniformity of assessments.  Sales ratio studies by neighborhood, type of property and other characteristics  are performed on a regular basis to assure uniformity in values.

Sales File:
The county has an inventory of sales that have occurred and the latest are stored in a CAMA (Computer Assisted Mass Appraisal) database.  This data is collected on an ongoing basis.

Notice of Valuation:
The Revenue Commissioner is required by law to notify the property owner every five years of their property value.  If your property value changes in the interim years you will also receive notification.  Notification will be mailed to the owner of record.

Appealing the Market Value: Once you have received your "Valuation Notice" you have ten days from the date of mailing to contact the Montgomery County Appraisal Department.  When you telephone the Appraisal Department you will be talking with a knowledgeable appraiser regarding your property.  If the appraiser cannot satisfy your questions via the telephone an "informal appeal" hearing will be scheduled for a face-to face meeting with a qualified appraiser.  If you are still unsatisfied with the results of your appeal you may apply to be heard by the BOARD OF EQUALIZATION.  The Board of equalization will schedule you a hearing date to come and present your argument.  If no satisfaction is gained at this level you have the legal right to appeal to Circuit Court within 30 days after final notification from the Board of Equalization.

Remember:
Real property taxes are billed October 1st of each calendar year.  Taxes can be paid between October 1st and December 31st of each calendar year without penalty.  Taxes become delinquent after December 31st.  Any unpaid taxes are assessed fees and 1% interest per month beginning in January of each calendar year.  All unpaid property is sold at auction in May to the highest bidder.  The property is sold with a three year "Right of Redemption".  Personal property has no right of redemption.