The Alabama market has been deeply impacted by COVID-19, especially as it relates to hospitality, retail, multifamily, and office assets. Unfortunately, many jurisdictions in the state have significantly increased values over the last two years as a result of the Alabama Department of Revenue (DOR) updating its appraisal manual. The COVID-19 situation, on top of an increased tax base, adds to the struggle property owners are facing. To further complicate the current situation, the following are additional issues property owners should consider:
2020 Date of Value
The lien date (date of value) for the 2020 tax year is October 1, 2019. While there has not been an official statement from the Alabama DOR regarding how to treat the COVID-19 crisis, initial feedback from county appraisers indicates all COVID-19-related property struggles will be addressed in tax year 2021, not 2020. Regardless of the state and county position, our plan is to aggressively pursue adjustments in the current year, and we have already had substantive discussions with local jurisdictions to see what can be done.
2020 Appeal Cycle
Value notices have already started going out, and the appeal deadline is 30 days from the date on the notice. Major jurisdictions report the following value release dates:
- Jefferson (Birmingham): Mid-June (Note: the county is still working through 2019 appeals)
- Shelby (South Birmingham): Already issued; appeal deadline was May 8
- Madison (Huntsville): Already issued; appeal deadline was April 17
- Mobile: May 13; appeal deadline is June 12
- Tuscaloosa: Mid-May
- Lee (Auburn): Mid-May
2020 Tax Payment Due Date
The tax bills are still scheduled to be released in the fall with a due date of December 31. That is not expected to change, but we will keep you informed.
Ryan’s Property Tax team is encouraging owners to closely review their 2020 valuations. Our team of experts has local presence and extensive experience in navigating the property tax process in Alabama. We handle the appeals for some of the largest commercial owners in the state. If you are interested in understanding more about the 2020 tax year and the potential impact to your property, please contact us for additional details.
TECHNICAL INFORMATION CONTACTS:
Brad Wallace
Principal
Ryan
404.942.6346
brad.wallace@ryan.com
Adam Travis
Manager
Ryan
404.942.6360
adam.travis@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
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- Brad Wallace