How to Calculate Your Property Tax - City of Gardendale, AL · 2013-10-12 · How to Calculate Your...
Transcript of How to Calculate Your Property Tax - City of Gardendale, AL · 2013-10-12 · How to Calculate Your...
How to Calculate Your Property Tax
Town Hall Meeting October 10, 2013
City of Gardendale Civic Center Exhibition Hall
What Determines Your Property Tax
After the Jefferson County Board of
Equalization places a market value on your property, there are
three factors that determine your property tax:
1) Classification 2) Tax rate
3) Tax credits or exemptions
Classification • Class 1 – 30% Assessment Rate • Public Utilities
• Class 2 – 20% Assessment Rate • Properties not included in Classes I, III or IV • Includes apartments, commercial, industrial, duplexes, business
personal property and some second homes
• Class 3 – 10% Assessment Rate • Single-family, owner-occupied homes or condos, farm and timber
land, historic districts and some second homes
• Class 4 – 15% Assessment Rate • Privately owned automobiles and pickup trucks
• By claiming owner occupancy, you can move from Class II (20%) to Class III (10%) • Tax credit on the first $4,000 of assessed
value for state property taxes • Tax credit on the first $2,000 of assessed
value for county property taxes
Homestead Exemption
• An additional homestead exemption is available for those over 65. This exempts your property from the state portion of real property taxes
• Over 65 and total federal taxable income of $12,000 or less, you may claim an exemption from all portions of real property taxes
• Over 65 and total federal taxable income is over $12,000, but the adjusted gross income on the most recent State tax return is $12,000 or less, a tax credit is allowed on the county and school district portion of real property taxes
Age-Based Homestead Exemption
Disability-Based Homestead Exemption
• An additional homestead exemption is available to those who are permanently and totally disabled. If the owner of the homestead is permanently and totally disabled, an exemption can be claimed from all portions of real property taxes.
Example on a Class III Residence
in Gardendale
Current Proposedon $100,000 50.1 Mils 60.1 Mils
Market Value $100,000 $100,000
10% Assessment Rate $10,000 $10,000
Tax Rate (Gardendale) 0.0501 0.0601
Net Taxes $501 $601Net Increase $100
Property Taxes
Class 3
Real Prope
rties
Example on a Class IV Personal Property
in Gardendale Current Proposed
on $20,000 50.1 Mils 60.1 Mils
Renewal Value $20,000 $20,000
15% Assessment Rate $3,000 $3,000
Tax Rate (Gardendale) 0.0501 0.0601
Net Taxes $150 $180Net Increase $30
Property Taxes
Class 4
Person
al Prope
rties
Example on a Class II Real Property in Gardendale
Current Proposedon $100,000 50.1 Mils 60.1 Mils
Market Value $100,000 $100,000
20% Assessment Rate $20,000 $20,000
Tax Rate (Gardendale) 0.0501 0.0601
Net Taxes $1,002 $1,202Net Increase $200
Property Taxes
Class 2
Real Prope
rties
Example of property tax distribution on a Class III Residence in Gardendale
Current Proposedon $100,000 50.12Mils 60.12Mils
Market2Value $100,000 $100,000
10%2Assessment2Rate $10,000 $10,000
State2of2Alabama26.52Mils $65 $65
Jefferson2County213.52Mils $135 $135
Jefferson2County2BOE230.12Mils $301 $0
Gardendale2City2Schools2BOE240.12Mils $0 $401
Net2Taxes $501 $601
Net2Increase $100
Property2Taxes
Class23
Real2Prope
rties