Business Personal Property

In Alabama, Section 40-7-15, Code of Alabama 1975 requires that Business Personal Property be appraised at its fair and reasonable market value for tax assessment purposes.

Business Personal Property is assessed based on ownership and situs as of October 1, the statutory lien date. Business Personal Property includes machinery, equipment, tools, furniture, fixtures, computer equipment, supplies, and other items used in business operations.

Because Business Personal Property values shift yearly, property is appraised based on its fair market value as of the official assessment date for that tax year.

Annual Filing Requirement

A Business Personal Property Return (ADV-40) must be filed each year for taxable business personal property located in Lee County as of October 1, the statutory lien date. Filing period: October 1 – December 31

Electronic Filing 

Business Personal Property Returns are mailed annually to businesses with login information required for online filing. Please retain your mailed return, as it contains your BPP Identification Number (BPPIN) and Online Access Code. Returns must be filed online through ALPropTax:

File Your BPP Return Online – ALPropTax

Effective October 1, 2025, State Bill 301 ACT #2025 – 263 enacted notes online electronic filing is required for any of the following:

• Businesses with cost of assets ten thousand dollars ($10,000) or more
• BPP Return prepared by any professional or other third-party tax preparer
• Leasing companies reporting business personal property

Sold or Closed Business

If a business has been sold or closed, a Business Personal Property Return is still required. Closing a business or selling property after October 1 does not remove the tax obligation for that tax year.

The return filed should include:

• Date the business was sold or closed
• Purchaser’s name and address, if applicable

Filing Deadline

Business Personal Property Returns must be filed by December 31 of each year.

Failure to file by the December 31 deadline may result in a 10% penalty, an audit, and/or an estimated assessment.