The average retail value is taken from National Market Reports, as of October 1st. This value is multiplied by 89% to arrive at market value. Multiply the market value by the appropriate assessment ratio 15%, 20% or 30% and round the results down to the nearest $20.00 to get the assessed value.

Ad valorem taxes on motor vehicles shall be assessed and collected forward on a current basis to coincide with the collection of motor vehicle registration fees. All accrued ad valorem tax on a motor vehicle for the previous tax year must be collected prior to vehicle registration.

An ad valorem tax lien attaches to a vehicle on:

(1) The date an individual originally brings the vehicle into Alabama

(2) Date the vehicle is sold from a dealer's inventory

(3) Date a vehicle is sold by an individual or upon date a motor vehicle otherwise becomes subject to taxation.

Ad valorem tax is a property tax and not a use tax and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway.