Common Questions About Mobile, Alabama Property Tax

Property taxes are something we all must pay on a variety of assets, such as land, personal property, and improvements to real property such as buildings.. Many questions arise concerning property taxes. While it’s a payment we owe the government, it can be complicated to determine how much you must pay, what actions might be taken against you, and what process must be followed to purchase a property that’s been assessed with a tax lien.

As you work with a real estate attorney, get answers to some common questions you might have about property taxes in Mobile, Alabama.

How Are Property Taxes Assessed?

A common question you might have about your existing or future property is how property taxes are determined. In Alabama, property tax assessments are based on property classification, millage rates, and exemptions. The amount of taxes to be paid is determined by multiplying the appropriate millage by assessed value less the proper exemptions. Millage rates are set by the county commissions and other taxing agencies.

What Is the Millage Rate in Mobile, Alabama?

A mill is one-tenth of one cent (.001). When all of the taxing authorities’ millage requests are added together, you can calculate a total tax bill.. Millage rates are published on most local county revenue commissioner websites.

What Are Examples of Homestead Exemptions in Alabama?

In Mobile, a homestead is considered a single-family owned and occupied property, on less than 160 acres of land. If you own the residence and live in it as your primary residence on the first day of the tax year, you may be eligible for a homestead tax exemption. To apply for a homestead exemption, you can work with an attorney or you can visit your local revenue commissioner’s office.

What Types of Property Is Exempt in Alabama?

In Alabama, certain types of property may be exempt from tax assessments. Some examples can include seniors (65 & over) and disabled property owners.

What Is A Tax Lien?

What happens when you don’t pay your property taxes? One possible risk is that a tax lien will be placed on your property. This means you will be unable to sell your property or refinance the loan until you pay off the debt.

When Is Property Sold Off For Unpaid Taxes?

If you do not pay your property taxes and a lien is placed on the home or building, your property can be sold off at a public sale. Those who purchase the property and the lien at the sale are issued a Tax Certificate.

As a property owner, have three years from the date of the tax sale to redeem your property from the tax sale. You should promptly consult with an experienced real estate attorney if your property has been sold for unpaid property taxes.

This process can be complicated, so it’s essential to work with both a real estate attorney and a taxation lawyer to determine the process so you know what to expect.

Can You Appeal Property Tax Assessments?

If you are assessed a tax that you don’t agree with, or you feel the amount is higher than it should be, you may have the right to file an appeal Because appeal rights are time sensitive you should contact a real estate attorney as soon as you receive your assessment if you have questions.

Contact Our Real Estate Lawyers In Mobile

Our real estate attorneys provide complete legal services to developers, buyers, and sellers in real estate transactions. We also represent lenders. When needed, our taxation lawyers assist our real estate clients to ensure all their tax questions are answered. Contact our Mobile, Alabama office today at (844) 682-7682 or fill out our online contact form