Donna is a licensed Alabama real estate salesperson helping a buyer evaluate a property listed as agricultural land. The buyer asks Donna how Alabama's property tax system would classify this land and at what percentage of fair market value it would be assessed. Which answer should Donna give?
Correct Answer
C) Class III property, assessed at 10% of fair market value
Agricultural land in Alabama is classified as Class III property under the state's ad valorem tax classification system and is assessed at 10% of fair market value. While both Class III (agricultural) and Class IV (residential/farm) share the same 10% assessment ratio, agricultural land specifically falls under Class III. Donna should correctly identify it as Class III at 10%.
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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?
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