Mobile apartment property taxes are calculated by taking the Mobile County Revenue Commission’s market value for the building, multiplying it by Alabama’s 20% assessment ratio for rental property, and then applying the combined millage for the location, which was 63.5 mills inside the City of Mobile on the state’s October 2024 millage table. For a typical apartment building that works out to roughly 1.27% of market value a year, below the 1.5% ceiling Alabama’s constitution sets for this class of property.
That one sentence hides several decisions an owner can influence: how the county arrived at the market value, whether the property is classified correctly, what furniture and equipment are being taxed separately, and whether the value is worth appealing. This guide explains each step as it applies to apartment buildings in the City of Mobile.
The legal framework behind every Alabama tax bill
Alabama sorts all taxable property into four classes, each with its own assessment ratio, under Code of Alabama Section 40-8-1. The ratio converts market value into assessed value, which is the number the millage is applied to.
- Class I, utility property: assessed at 30% of market value.
- Class II, all property not otherwise classified: assessed at 20%.
- Class III, agricultural, forest, residential and historic property: assessed at 10%.
- Class IV, private passenger automobiles and pickup trucks: assessed at 15%.
The Alabama Department of Revenue’s property tax overview summarizes the classes and notes the state’s own levy of 6.5 mills. The full statutory text is in Code of Alabama Section 40-8-1.
Why apartments land in Class II
The residential class sounds like it should cover apartment buildings, but it does not. Section 40-8-1 defines residential property as real property used by the owner exclusively as the owner’s single-family dwelling. A rental unit, by definition, is not the owner’s home. The Mobile County Revenue Commission describes Class III as “Owner Occupied Non-Rental Residential Property” and places all other property at 20%.
The practical result is that an apartment building in Mobile is assessed at twice the ratio of an owner-occupied house of the same value. A $2 million house occupied by its owner would carry an assessed value of $200,000; a $2 million apartment building carries an assessed value of $400,000.
This also matters for small owners who live in one unit of a building and rent the others. Only the portion that qualifies as the owner’s single-family residence fits the residential definition, so the rental portion is still taxed at the higher ratio. Owners in that situation should confirm with the Revenue Commission how their parcel is split.
The constitutional ceiling
Amendment 373 to the Alabama Constitution, adopted in 1978 and often called the Lid Bill, caps the total ad valorem tax that all taxing authorities combined can collect on a property each year as a percentage of fair market value:
- 2% for Class I
- 1.5% for Class II
- 1% for Class III
- 1.25% for Class IV
The text of Amendment 373 and its tax limits names exceptions for a few cities, but Mobile is not among them. For an apartment owner in Mobile, the 1.5% Class II cap is the outer limit. The same amendment created current-use valuation for agricultural and timber land, but that option applies only to Class III property and is not available to apartment owners.
How millage stacks up inside the City of Mobile
Millage is the tax rate per $1,000 of assessed value. One mill equals $1 of tax per $1,000 of assessed value, or 0.1%. The Alabama Department of Revenue’s millage rate table for Mobile County, October 2024, breaks the 63.5 mills levied inside the City of Mobile into four layers:
- State of Alabama: 6.5 mills.
- Mobile County: 20.5 mills, made up of a 6.0-mill general fund levy, 3.5 mills for roads and bridges, 6.5 mills of special road and bridge tax, 3.5 mills for hospitals and 1.0 mill for the board of health.
- Schools: 29.5 mills, combining a 14.0-mill countywide school levy and a 15.5-mill Mobile school district levy.
- City of Mobile: 7.0 mills.
The Revenue Commission’s own rate table also lists 63.5 mills for the City of Mobile and 48.5 mills for unincorporated Mobile County. The 15-mill gap, which includes the City of Mobile’s own 7.0-mill levy, is one reason two apartment buildings of identical value can carry noticeably different tax bills depending on whether they sit inside or outside the city limits.
Millage can change through local votes and legislative acts. The October 2024 table is the most recent official breakdown publicly posted at the time of writing, so owners should check the current rate for their specific parcel on their tax bill or with the Revenue Commission before relying on it for underwriting.
Working through a sample tax bill
The Revenue Commission’s formula is straightforward: market value multiplied by the class ratio gives the assessed value, and assessed value multiplied by the millage gives the tax. Here is how that plays out for a hypothetical apartment complex inside the City of Mobile with a market value of $5,000,000:
- Market value set by the Revenue Commission: $5,000,000
- Assessment ratio for Class II: 20%
- Assessed value: $1,000,000
- Millage inside the City of Mobile: 63.5 mills, or 0.0635
- Annual tax: $63,500
That bill equals 1.27% of market value, under the 1.5% Lid Bill ceiling for Class II. Divided across, say, 60 units, it would be a little over $1,058 per unit per year, or about $88 per unit per month.
The Lid Bill also explains how much room local millage has to grow before the constitutional ceiling matters. On the same $5,000,000 property, the 1.5% Class II cap equals $75,000 a year. Because assessed value is 20% of market value, that cap is reached at 75 mills, or 11.5 mills above the current city total. In other words, the cap is a real backstop, but local millage could rise meaningfully before it would limit a Mobile apartment owner’s bill.
The same arithmetic shows why valuation is the lever that matters most. Every $100,000 of market value on a Class II property in the city adds $20,000 of assessed value and about $1,270 of annual tax. A valuation that is $500,000 too high on a mid-sized complex costs the owner roughly $6,350 every year it goes uncorrected. Owners comparing Alabama with other states can see how it stacks up in our rent control and property tax guide by state.
The Mobile County calendar
Alabama property taxes run on a cycle that surprises owners who come from states with calendar-year billing. According to the Mobile County Revenue Commission’s property tax FAQ:
- October 1 is the valuation and ownership date. All assessments and bills are based on ownership and the property’s status as of October 1 each year.
- The tax year runs October 1 through September 30, and taxes are collected in arrears.
- Taxes are due October 1.
- Taxes become delinquent after December 31. The county states that mail postmarked by December 31 is not penalized.
For a buyer, the arrears structure affects closing prorations. The bill due in October covers the prior tax year, so purchase contracts need to state clearly how the seller’s share of the current year is credited.
Who sets the value
Kim Hastie is the Mobile County Revenue Commissioner. Her office handles assessment, mapping, appraisal and collection, and it sets the market values that drive every bill. The Revenue Commission’s main office is at 3925 Michael Boulevard, and the county notes that all Revenue Commission offices are closed on Wednesdays.
The Revenue Commission sends valuation notices to property owners each year showing the fair market value for the current tax year. Owners are also required to report improvements; unreported improvements can lead to back assessments with penalties. For apartment owners, that means a major renovation, an added building or a converted amenity space should be reported rather than left for the county to discover.
Appealing a value in Mobile County
When a valuation notice looks wrong, the appeal goes to the Mobile County Board of Equalization, not to the Revenue Commission. The rules are specific, and missing one can end the appeal before it starts.
The 30-day deadline
An appeal must be received by the Board of Equalization, or postmarked by the U.S. Postal Service, within 30 days of the date printed on the valuation notice. The clock starts on the notice date, not the date the owner receives it. The governing state law is in Code of Alabama Sections 40-3-20, 40-3-24 and 40-3-25.
What the board will and will not hear
The Mobile County Board of Equalization’s appeal requirements set out several rules owners should know:
- The board hears appeals on market value only. Exemptions, tax amounts and fees are outside its scope.
- It can raise, lower or keep the value under appeal.
- Its decision applies for one year.
- The appellant must be the owner of record as of the lien date.
- Faxed appeals are not accepted, and appeals must not be sent to the Revenue Commission.
- An agent filing on an owner’s behalf needs written authorization on the board’s own form.
The board moved to the LeVert House at 153 Government Street in downtown Mobile effective September 28, 2026, so owners and agents should use the new address for filings and hearings.
Evidence for apartment buildings
For apartment complexes, shopping centers and office buildings, the board asks for income and expense statements for the past three years along with the rent roll, and lease agreements where relevant. That request signals that the property’s actual operating performance is central to how commercial values are reviewed. The board also states that foreclosure sales and short sales cannot be considered as evidence, and that submitted materials are not returned.
For an owner, a credible appeal usually means presenting clean, consistent financials that show what the building actually earns, alongside an explanation of any unusual expenses or vacancy during the period. A building with deferred maintenance, high turnover or a weak rent roll may have a strong argument that its market value is lower than the county’s figure. Conversely, an owner who submits three years of statements showing strong income may find the board keeps the value or raises it.
Taking it further
An owner who disagrees with the board’s final decision can appeal to circuit court under Code of Alabama Section 40-3-25. The appeal must be filed within 30 days after the board’s final decision, with notice filed with both the board’s secretary and the circuit clerk, and the owner must post a cost bond. The owner must also pay the tax before it becomes delinquent or post a supersedeas bond for double the tax; otherwise the appeal is dismissed. In practice, that means the tax is usually paid while the dispute continues.
Business personal property in apartment buildings
Real estate is not the only taxable property in an apartment business. Alabama taxes business personal property, which covers furniture and fixtures, machinery and equipment used in a business activity. It falls into Class II, assessed at 20% of market value, with an October 1 lien date. Returns are filed between October 1 and December 31, and Mobile County requires business personal property returns to be filed through its online portal. Property not assessed by the third Monday in January incurs a 10% penalty plus fees.
Neither the state nor the county lists apartment items by name, but laundry equipment, clubhouse and leasing-office furniture, fitness equipment and similar items used to operate the business are the kinds of assets owners should review with their tax preparer when filing a return.
The 2025 exemption increase
Act 2025-344 raised Alabama’s exemption for business personal property from $40,000 to $100,000 of market value for taxes collected in 2026 and later. Owners claim it on Form ADV-40. The higher exemption applies to the state’s 6.5-mill levy only. Counties and cities can extend it to their own levies by adopting a resolution at least 90 days before October 1, as described in the Alabama Department of Revenue rule on the business personal property exemption. Owners in Mobile should confirm whether the county or city has adopted it before assuming the full exemption applies to their local millage.
Mobile’s place in the county picture
The City of Mobile is the county seat of Mobile County. The April 2020 census counted 187,041 residents, but the Census Bureau’s 2020 estimates base for the city is 206,900 because it reflects the city’s 2023 annexation, which brought additional neighborhoods inside the city limits. The July 1, 2025 estimate put the population at 200,824. For owners of apartment buildings in annexed areas, annexation made those parcels subject to the city’s 7.0-mill levy, so it is worth confirming the millage on any recent bill rather than relying on older tax records.
Managing Mobile apartment property taxes year to year
Mobile apartment property taxes are among the easier costs to model because the formula is fixed, but they are also easy to overpay through inattention. A few habits help:
- Open every valuation notice the day it arrives. The 30-day appeal window runs from the date printed on the notice.
- Check the class on the bill. Rental property belongs in Class II at 20%; any owner-occupied portion should be identified separately with the Revenue Commission.
- Confirm the millage for the parcel. City and unincorporated parcels differ by 15 mills, and annexation can move a property between them.
- Keep three years of income and expense statements and a current rent roll ready. These are what the Board of Equalization asks for on apartment appeals.
- File the business personal property return on time through the county portal to avoid the 10% penalty.
- Model taxes with arrears in mind when buying or selling, so prorations reflect the October-to-September tax year.
Property taxes also shape what a buyer will pay for a building, since every dollar of tax reduces net operating income. For more on how the local market works, see our Mobile market page and the Alabama market overview.
