Alabama Advisory Opinions February 26, 1998: AGO 1998-097 (February 26, 1998)

AGO 1998-097.

Dear Mr. Dudchock:

This opinion of the Attorney General is issued in response to your request.

Act No. 97-217 provides for an increase in the ad valorem tax on all taxable property in Shelby County, School Tax District No. 2, beginning with the levy for the tax year beginning October 1, 1998, and ending with the levy for the tax year October 1, 2016, subject to the requirements of Amendment No. 373 to the 1901 Constitution of Alabama, which were met by the affirmative vote of a majority of the qualified electors of the district at an election properly called and held on May 27, 1997. Since automobile tags are issued on a staggered basis throughout the year pursuant to § 32-6-60, et seq ., of the Code of Alabama, only after collection of applicable ad valorem taxes, when should we begin collecting the additional tax on automobiles?

Act No. 97-217 provides in pertinent part:

In addition to any taxes now authorized or that may hereafter be authorized by the Constitution and laws of the State of Alabama, pursuant to Amendment No. 373 to the Constitution of the State of Alabama, an increase of the district ad valorem school tax presently being levied pursuant to Amendment No. 3 to the Constitution of Alabama of 1901, from the rate of thirty cents on each one hundred dollars worth of taxable property in School Tax District No. 2 in Shelby County (the "District") to the rate of one dollar and ten cents on each one hundred dollars worth of taxable property in said county (an increase of eighty cents on each one hundred dollars worth of taxable property, or eight mills) is approved; such increased tax to be levied and collected in the District by the governing body of Shelby County for each year beginning with the levy for the tax year October 1, 1997 to September 30, 1998 (the tax for which year will be due and payable October 1, 1998) and ending with the levy for the tax year October 1, 2016 to September 30, 2017 (the tax for which year will be due and payable October 1, 2017) for public school purposes; provided, that the aforesaid increased rate of such tax, the time it is to continue and the purpose thereof shall have been first submitted to the vote of the qualified electors of the District, and voted for by a majority of those voting at an election called and held in accordance with applicable law governing such elections. . . .

Section 32-6-60 of the Code of Alabama provides in pertinent part:

Effective from and after October 1, 1980, the licensing, registration and ad valorem taxation of motor vehicles in compliance with the laws of the state of Alabama shall be on a staggered basis. Provided, however, the actual distribution of the license plates described in sections 32-6-63 and 32-6-64 shall begin from and after January 1, 1982. For the fiscal year 1981 the license plates used for the previous five years as set out in section 32-6-50, shall continue to be used in the same manner as used in the past five years.

An appropriate 1981 tab, disc or other device suitable for attaching to said motor vehicle tag or plate shall be issued upon the payment of the annual license tax prescribed by law for the 1981 fiscal year. While the actual issuance of license plates described in sections 32-6-63 and 32-6-64, on a staggered basis shall not begin until January 1, 1982, the licensing, registration and ad valorem taxation of motor vehicles shall be on a staggered basis effective from and after October 1, 1980.

To implement this subdivision, the licensing, registration and taxation may be for periods less than or greater than 12 months during the conversion year only.

However, such proration of fees during the implementation of a staggered registration system shall result in the collection of a total amount of moneys for the taxable year no more nor less than the current annual amounts received. . . .

Under the provisions of section 32-6-61, the staggered registration system, the tax which would have been due retroactively after October 1, 1998, for the tax year October 1, 1997, to September 30, 1998, is collected during 1998 depending upon the first letter of the last name and other factors.

The increase in the school district tax became effective pursuant to Act No. 97-217 for "the tax year October 1, 1997 to September 30, 1998" which is the current year. Accordingly, the increase is due to be charged just as other ad valorem taxes which were in effect and to be charged against automobiles for the tax year beginning October 1, 1997.

The additional ad valorem tax authorized pursuant to Act No. 97-217 which was approved by the voters on May 27, 1997, and is effective for the tax year beginning October 1, 1997, should be collected prior to the issuance of motor vehicle tags on a staggered basis under the provisions of sections 32-6-60 and -61 of the Code of Alabama in the same way as other ad valorem taxes on motor vehicles which are effective for the tax year which began October 1, 1997, are collected.

I hope this opinion answers your question. If this Office can be of further assistance, please contact Philip C. Davis of my staff.

Sincerely,

BILL PRYOR

Attorney General

By: JAMES R. SOLOMON, JR.

Chief, Opinions Division

BP/PCD/jho

D2.98/OP