A power company owns a high-voltage transmission line corridor in Jefferson County. The corridor has been appraised at a fair market value of $2,000,000. Under Alabama's classified ad valorem property tax system, which assessment ratio applies, and what is the resulting assessed value?
Correct Answer
D) 30% assessment ratio; assessed value of $600,000
Public utility property in Alabama is classified as Class I under the state's ad valorem tax classification system and is assessed at 30% of fair market value — the highest assessment ratio of any class. For this transmission corridor: $2,000,000 × 30% = $600,000 assessed value. Class I carries the highest burden because utilities are considered to have a greater ability to pay and benefit significantly from public infrastructure.
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