To prevent motor vehicles, as defined by Section 40–12–240, from escaping taxation and to provide for the more efficient assessment and collection of taxes due on same, no license shall be issued to operate a motor vehicle on the public highways of this state, nor shall any transfer be made by the director of the department as provided under this part, until the ad valorem tax on such vehicle shall have been paid in the county for the preceding year, as evidenced by a receipt of the director of the department where the owner of the vehicle resides, if the vehicle is owned by an individual; and if the vehicle is owned by a firm, corporation, or association, then as evidenced by the receipt of the director of the department in the county in which the motor vehicle is used or operated; provided, that this section shall not apply to motor vehicles owned by dealers, the state, counties, and municipalities. Every person, firm, or corporation who desires to operate a motor vehicle on the public highways of Alabama shall first return the motor vehicle for ad valorem taxation to the director of the department of the county for the preceding tax year, and the director of the department of the county shall deliver to the person who makes the return as herein required a certificate of assessment on a form prescribed by the State Department of Revenue, and such certificate shall be the warrant of the director of the department to collect the tax as shown thereon. Motor vehicles, within the meaning of this part, shall not be included in any assessment made by a person, firm, or corporation with the tax assessor, and such motor vehicle shall not be considered as escape property by reason of failure to include same in any tax return, but shall be assessed as herein provided. The director of the department, upon issuing a license for the operation of motor vehicles as herein provided, shall make the tax receipt in triplicate, keeping one copy on file in his or her office, forwarding a legible triplicate copy to the Department of Revenue on the day the license was issued. The license tag shall be evidence of the payment of the license and ad valorem tax due as provided under this part. Valuation for ad valorem assessment shall be 60 percent of the fair and reasonable value of the motor vehicle. Motor vehicles brought into this state after the first day of October, and before the director of the department has completed his or her assessment, shall be subject to taxation the same as if it had been held or owned in the state on the first day of October. The director of the department is authorized to issue a motor vehicle license where he or she ascertains and makes a record of the fact that there is no ad valorem tax due on the motor vehicle for the preceding year. The director of the department, in addition to assessing and collecting the ad valorem taxes due the state and county on motor vehicles, shall collect the ad valorem taxes on motor vehicles due all cities and towns located in the county. The director of the department shall report and pay over the money collected for cities and towns at the same time and in the same manner as state and county taxes are reported and paid over by him or her. The director of the department shall receive a commission of two and one-half percent for assessing and a commission of two and one-half percent for collecting city and town ad valorem taxes and shall deduct these commissions from the amount collected before paying the same over to the city or town. All commissions collected hereunder by the director of the department shall be paid into the general fund of the county and shall be the property of the county.
Last modified: May 3, 2021