How are property taxes assessed in Alabama?

In Alabama, property taxes are assessed based on the property's assessed value, which is a percentage of its market value. This means that tax authorities evaluate the market value of a property and then apply a specific assessment ratio to determine the amount that will be taxed. The assessed value is crucial for calculating property tax bills and is determined by local tax assessors, who take into account various factors including the property’s location, characteristics, and the current real estate market conditions.

This method of assessment is widely recognized because it allows for a more nuanced reflection of the property's worth, ensuring that tax contributions are aligned with the economic value of the property rather than arbitrary metrics such as size or age. This approach ensures fairness and equity in how property taxes are levied across different properties in Alabama.