Millage rates and how they apply to taxes

Millage rates are used in property tax assessments and are determined by the county commissions and other taxing agencies in each respective county. Millage is the tax rate expressed in decimal form.

  • A mill is one-tenth of one cent. (.001)
  • 1 mill = $0.001
  • 10 mills = one penny or $0.01
  • 100 mills = ten cents or $0.10
  • 1000 mills = one dollar or $1

The amount of taxes to be paid is determined by multiplying the appropriate millage rate by the assessed value of a property less its proper exemptions as defined by its property classification or use.

Assessed values are determined by the defined property class applicable to the property; the State of Alabama defines four classes of property based on use.

Property Classes

Class Description Assessment Percent
I All property of utilities used in the business of such utilities 30%
II All property not otherwise classified 20%
III All agricultural, forest, and single-family owner occupied residential property, including owner occupied residential manufactured homes located on land owned by the manufactured home owner, and historic building and sites 10%
IV All private passenger automobiles and motor trucks of the type commonly known as “pickups” or “pickup trucks” owned and operated by an individual for personal or private use and not for hire, rent, or compensation 15%

For example, an owner-occupied, single-family residence (Class III property) valued at $100,000 would have an assessed value of $10,000, which equals 10% X $100,000. To determine the applicable taxes, the assessed value is multiplied by the appropriate millage rate. If the millage rate were 26 mills, for example, the taxes owed would equal $10,000 X .026 = $260. Note this is the calculated tax before any exemptions have been applied.

Millage Rates – Tax Years 2016-2019

Code Description State County City School Total Millage
01 County 6.5 9.5 0 10 26
01A County-Abatements 3 0 0 10 13
02 Cullman 6.5 9.5 15.5 7 38.5
02A Cullman-Abatements 3 0 10.5 7 20.5
03 Hanceville 6.5 9.5 5 10 31
03A Hanceville-City-Abatements 3 0 0 10 13
04 Garden City 6.5 9.5 6 10 32
04A Garden City-Abatements 3 0 0 10 13
05 Holly Pond 6.5 9.5 2.5 10 28.5
06 Vinemont 6.5 9.5 2.5 10 28.5
06A Vinemont-Abatements 3 0 0 10 13
07 Good Hope 6.5 9.5 5 10 31
07A Good Hope-Abatements 3 0 0 10 13
08 Arab 6.5 9.5 5 17.5 38.5
13 Dodge City 6.5 9.5 0 10 26

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