GOVERNMENT

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Tax Information...

All property taxes are due on October 1 becoming delinquent after December 31. A homestead exemption is allowed the owner occupant during the first year of occupancy. Tax rates vary according to location and property usage. State income tax wages are withheld by employers on wages. Self-employed persons must make periodic estimated payments. Forms and information may be obtained at the Colbert County Tax Assessors office, 386-8530 or the Lauderdale County Revenue Commissioner's Office 760-5785.

Shoals Area Sales Tax (07/26/95)

TAXES

Real Property Tax
Industrial real property is assessed as Class II property which has a basis rate of 20% of fair market value. Non-educational related ad valorem tax abatements are available to qualified companies meeting law requirements. Single family dwellings are rated as Class III and have a 10% basis rate. Combined state and local ad valorem rates in the Shoals range from 27 mills in Colbert County to 51 mills within the Florence city limits.

Machinery and Tools Tax
Both machinery and tools are considered to be personal property and are rated as Class II with a 20% basis. Non-educational tax abatements are available to qualified companies. Mileage (ad valorem) rates are the same as real property rates.

Inventory Tax
There are no raw material or finished property taxes in the State of Alabama.

Corporate Income Tax
Alabama's corporate income tax is 5% of the income annually from business within the state with deductions allowed for federal income tax paid or accrued for foreign companies and 5% of the net income annually with deductions allowed for federal income tax paid or accrued for domestic corporations. Corporate tax credits are available for qualifying companies. There are no local corporate income taxes.

Personal Income Tax
The state of Alabama has a personal income tax that ranges from 2% to 5%. There are no local income taxes.

Sales Tax
Combined state and local tax rates range from 5% to 8.5% depending on the community. Sales tax on machinery averages approximately 2%. The local community, and in some cases, the local industrial development board has the authority to consider non-educational related sales tax abatements on construction materials and equipment purchased during the early project life to qualified companies meeting law requirements.

Unemployment Tax
State unemployment compensation tax is assessed on the first $8,000 the employer pays on each employee. The rate varies according to the employer's unemployment experience modified by statewide experience. This can be as low as 0.2% or as high as 6.8%.