Marcus owns a commercial warehouse in Birmingham, Alabama. The property has a fair market value of $500,000. Under Alabama's classified ad valorem property tax system, what is the assessed value of Marcus's warehouse for tax purposes?
Correct Answer
D) $100,000, because commercial property is assessed at 20%
Under Alabama's classified property tax system, Class II property — which includes commercial and industrial property — is assessed at 20% of fair market value. Therefore, Marcus's $500,000 warehouse has an assessed value of $500,000 × 20% = $100,000.
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