Guthrie, 070318 ALAGO, AGO 2018-38

• Case Date: July 03, 2018
• Court: Alabama

Honorable Jerry Guthrie AGO 2018-38 No. 2018-038 Alabama Attorney General Opinion State of Alabama Office of the Attorney General July 3, 2018          Honorable Jerry Guthrie          Walker County Revenue Commissioner          1803 3rd Avenue, Suite 102          Jasper, Alabama 35501          Revenue Commissioners - Ad Valorem Taxes - Assessments Subdivisions - Current Use Valuation          Vacant lots bought from a residential subdivision may be classified as Class III property and assessed at current use value if the revenue commissioner determines that the lots are no longer being held as commercial property and are instead used for a qualifying purpose.          Dear Mr. Guthrie:          This opinion of the Attorney General is issued in response to your request.          QUESTION          Can vacant lots purchased from a planned, platted subdivision by an individual and used by the individual as a buffer for Class III property already owned be legally classified as Class III property?          FACTS AND ANALYSIS          Your request states that a small acreage tract containing sixteen to twenty acres was developed as a residential subdivision. You further state that the unsold lots are assessed against the subdivision owner as Class II property under section 40-8-l(a) of the Code of Alabama, with a 20% assessment ratio. Ala. Code § 40-8-l(a) (2011) ("All property not otherwise classified, 20 percent."). Some of the lots were sold to individuals. Once the lots are sold to individuals and are used as single-family residential property they are reclassified as Class III property and assessed at a 10% assessment ratio as of the next October 1. Ala. Code § 40-8-l(a) (2011) ("All agricultural, forest, and residential property, and historic buildings and sites, 10 percent.").          An individual who owns an unimproved 143-acre tract of land that adjoins eight of the lots in the subdivision bought these eight lots as a buffer. The 143-acre tract is assessed as Class III property and also qualifies as current use...