TAXATION AND REVENUE SYSTEMS—ALABAMA. 
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associations; property of literary and scientific institutions; libra 
ries of ministers of the gospel; all libraries not professional, and re 
ligious books kept for sale by ministers of the gospel and colporteurs; 
deaf-mutes, insane and blind persons, and their property to the ex 
tent of $1,000; all family portraits; household furniture to $150; 
1 yoke of oxen; 1 cart or wagon; 2 cows and calves; 20 head of hogs; 10 
head of sheep; all poultry; all cotton and agricultural crops grown in 
the preceding year, and all manufactured articles remaining in the 
hands of producer or manufacturer; provisions and seed; all wear 
ing apparel; all looms and spinning wheels kept for use of family; 
$25 worth of farming tools or mechanic’s tools; 1 sewing machine to 
each family, when taxable property does not exceed $250; all money 
on deposit in banks. 
Property used in the manufacture of calcium cyanide is exempt 
for 10 years after beginning construction of such plant. Pig iron is 
exempt for 12 months from time of production. 
All property used and devoted exclusively to the manufacture of 
patented devices for the protection of human life, is exempt for a 
period of 10 years from 1907. The patented rights and stock of such 
corporations are also exempt for said period. 
To encourage cotton and woolen factories, it was enacted in 1893 
that the county or city authorities might grant them exemption for 
five years; in 1901 shipbuilding plants were given the same bounty, 
and it was further provided that cotton factories established since 
1897 investing $50,000 therein prior to 1907 should be exempt 
from all taxes for 10 years, and shipbuilding plants investing 
$500,000 within five years from 1901 were also exempted from all 
taxes for 10 years. 
To encourage the development of the unused water powers of the 
state, all property, business, and franchises necessary for the produc 
tion and distribution of hydroelectric power is exempt for 10 years 
after the beginning of the construction of any such plant. 
b. Assessment.—There is but one assessment list for 
state and county purposes. The assessment is based 
upon the actual cash value of the property assessed 
and is made by the county assessor on the basis of 
sworn statements furnished by the taxpayers. The 
assessment of all property is made annually and refers 
to the 1st day of October; it is made up between that 
date and the 1st of February with a “supplementary” 
assessment up to the first Monday in May. Property 
brought into the state after the 1st of October, unless 
bought with money already assessed, is taxable. 
Property is to be valued at its actual cash value. When 
possible, the assessor is to interrogate the taxpayer 
personally. The penalty for failure to make a return 
to the assessor is, in the case of private persons, 10 per 
cent added to the assessment made by the assessor; 
in the case of railroad, telegraph, and long-distance 
telephone companies, and corporations whose gross 
receipts are taxable as property, the penalty is 50 per 
cent increase. Besides entering the valuation, the 
assessor is required to enter separately in the assess 
ment book the amount of state, county, and special 
taxes on the aggregate of real and personal property. 
The assessor turns over the assessment book to the 
judge of probate, who makes the abstract for the 
state auditor and the county collector. If the as 
sessor discovers property that has escaped taxation in 
any assessment within five years previous, he assesses 
the back taxes against that property and for this 
receives a special commission. No assessment shall be 
changed to a greater or less amount for the succeeding 
year, unless there shall be a change in the condition of 
improvements on the property. 
Other provisions in regard to assessment are: 
In valuing real estate the location, whether vacant or lying idle 
or occupied and in use, and, if occupied and in use, the rent derived 
therefrom, is to be taken into consideration. 
Railroad, telegraph, and long-distance telephone companies are 
assessed on all property, not strictly localized, by the state board of 
assessors, and the assessment so made is apportioned to each county 
on the basis of mileage in such county. 
The valuation of railroad property not local in character made by 
the state board of assessors is based ‘ ‘exclusively upon the considera 
tion of what a clear fee-simple title thereto would sell for under the 
conditions under which that character of property is usually sold.” 
The value of the franchise or intangible property of railroad, 
street railroad, and car companies, telegraph and telephone com 
panies, gas, electric light, heat, and power companies, wharf, canal, 
station, or terminal companies, and other companies operating a 
public utility is computed from annual statements filed with the 
state tax commission which form the basis of the assessment. From 
the true cash value of the company’s entire property, ascertained 
by taking the aggregate market or true value of all its shares of 
stock and adding thereto the market or true value of its entire 
indebtedness secured by any mortgage, lien, or other charge upon 
its property, there is deducted the assessed value of the entire 
tangible, real and personal, property of such company, and the 
remainder of the true value is fixed by the state tax commission 
as the true value for taxation of the franchises or intangible 
property owned by such company. 
The individual shareholders of any corporation paying ad valorem 
taxes are not required to list its shares for taxation or to pay ad valo 
rem taxes on such shares. 
Whenever associations, etc., having no capital stock, engage in 
business in the state, the capital and property are treated as capital 
stock, and subject to taxation. 
Shares of stock in corporations, other than railroad, telegraph, 
long-distance telephone, express and sleeping car companies, build 
ing and loan associations, and banks, are assessed at market value, 
and, if the aggregate value of the shares exceeds the aggregate value 
of the real and personal property of the corporation assessed, are 
liable to taxation on such excess. The corporation pays for the 
stockholder^ the tax on such excess. 
Shares of stock in banks are assessed to the stockholders at a fair 
and reasonable cash value, less the assessed value of real estate 
taxed to the bank. The bank pays the taxes for the stockholders. 
Any unincorporated bank shall be assessed at a fair and reasonable 
cash value. 
c. Equalization.—There is no equalization, strictly 
interpreted, of any part of the assessment in Alabama, 
but the court of county commissioners sits as a board 
of review and hears and adjudicates all objections to 
the assessment, treating them as regular cases on the 
docket to be tried in the name of the state of Alabama 
as plaintiff and the taxpayer as defendant. An appeal 
from its decision may be taken to the circuit court. 
There is no state board of equalization and no equal 
ization, so called, between counties. But the super 
vision of assessments by the tax commission is intended 
to produce equality. 
2. Rate— 
The constitution of 1875 limited the rate which 
might be levied for state purposes to 75 cents on each 
SI00 of assessed valuation; that of 1901 reduced the