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

Gardendale Tax Rate

•  Current tax rate = 50.1 mils (.0501)

•  Proposed tax rate = 60.1 mils (.0601)

• 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

Jeffconline.jccal.org

Board of Equalization: 205-325-5566

Tax Collector: 205-325-5500

Tax Assessor: 205-325-5505

More Information: