State and Local Tax Services - Accounts Payable Review, State Audit Representation

State and Local Tax Services - The SALT Group - HJH Consulting Company

For Immediate Release
January 7, 2005

Alabama – Changes in Property Tax Credit Law Benefit Vehicle Owners. 

Vehicle owners who sell or trade vehicles during their registration year will benefit from changes in Alabama’s property tax laws, effective January 1, 2005.

Vehicle owners will be allowed a property tax credit or tax refund for any unused portion of their prepaid vehicle property taxes.  The credit, good for 12 months, will be issued by the local tag-issuing office for any unused portion of the prepaid vehicle property taxes when the owner sells or trades the vehicle.

Owners can apply the credit toward property taxes due on their replacement vehicle purchase, or on taxes due for another vehicle they already own at the time the vehicle’s registration is renewed.

The new law also allows a refund to be issued to owners, in the event that the credit cannot be applied toward payment of property taxes on another vehicle.  Prior Alabama property tax law did not allow for a refund.

If you would like additional information on this topic or other  related questions, please contact David Rohlmeier, Regional Vice President - Sales & Use Tax Group at (469) 364-9600.  E-mail drohlmeier@thesaltgroup.com


Back to Main News Page


The HJH Consulting Group Plaza | 874 Harper Road | Suite 101 | Kerrville, Texas 78028 | 830.257.1290 | Fax 830.257.2138
©2001-2007 The SALT Group® - All Rights Reserved