Section 40-7-25.1 of the Code of Alabama 1975 established an alternate type of assessment. “Current Use” valuation is based on the use to which the property was put on October 1 of the tax year rather than the highest and best use put forth under market valuation. Current Use valuation is limited to property legally classified as Class IIl, and must be requested by the owner. In order to obtain the benefits of an evaluation based upon current use of property, the landowner must file this application no later than January 1 in any taxable year. For the property to qualify it should be must actively used as cropland, pastureland, or timberland.
Current Use of Property and amount of acres per use:
If any property approved for current use is converted to any use other than that for which the application was filed, the tax official shall revalue the property according to current market value as provided by the Code of Alabama 1975, Section 40-7-25.3. Taxes will be due based on the sales price or the fair and reasonable market value of such property at the time of its conversion, whichever is greater, for the preceding three (3) ad valorem tax years. A request to withdraw current use from property must be made before conversion to prevent this penalty.
When property changes ownership the current use assessment is discontinued. The new landowner must file an application as stated above, before January 1 in any taxable year for the benefits of Current Use to continue uninterrupted. Current Use assessment is never automatic, it must be applied for by the current property owner.
Applicant has read all information pertaining to this application, and attest that all information provided is correct. Applicant understands this is an application ONLY, and the property listed on this form will be subject to a physical, on-site inspection by a county appraiser for determination and approval of Current Use.