SUE BAKER ROAN

302 LEE ST NE

PO BOX 668

DECATUR, AL 35602

(256) 351-4770

1. ALABAMA VEHICLE REGISTRATION REQUIREMENTS:

The Alabama Department of Revenue in Montgomery sets all vehicle values as well as all title laws and rules.

1. New owners of vehicles 1975 and newer must have:

(a) An original title from the seller (new owner must be present) or

(b) Manufacturers Certificate of Origin (new owner must be present) or

(c) Title in new owner's name or

(d) Title application completely filled out to the new owner.

(e) Vehicle currently insured.

(f) Inspection of VIN # required if we apply for first Alabama title (vehicle must be present).

2. A bill of sale containing:

(a) Cost of vehicle and date of sale.

(b) Full description of the vehicle.

(c) Complete name and address of the new owner.

(d) Trade-in allowance, if any.

(e) A breakdown of the sales tax paid. This breakdown must show the percent of State, County and City tax paid. If all sales tax has not been paid we will collect percentage based on location of residency.

3. An out of state exemption certificate is needed if the vehicle came from another state into the possession of an Alabama dealer.

4. If the vehicle has an Alabama license plate, we need the tag number, decal number, month and year of expiration.

5. On vehicles that are model year 1974 and older, we need:

(a) Bill of sale, as described in #2, and #4.

(b) Vehicle currently insured.

6. As of January 1, 1998, all license plates, except vintage vehicles, will remain with the vehicle owner instead of remaining with the vehicle. Vehicle registration must be carried in the vehicle to prove that the license plate is on the proper vehicle, along with proof of insurance.

(2) VEHICLE RENEWAL SCHEDULE:

Renewal Month: First Letter of Last Name:

January - A & D

February - B

March - C & E

April - F G & N

May - H & O

June - M & I

July - P & L

August - J K & R

September - Q S & T

October - U V W X Y & Z

October/November National Guard, Commercial & Fleet trucks

Note: Please notice the decal on your license plate. If the month on your plate has passed, your tag is expired. Example - if plate shows August, the renewal must be made before September 1 st.

All vehicles in Alabama are personal property. Property tax is paid in advance from the time of registration until your renewal month.

(3) PENALTY SCHEDULE:

1. Failure to renew your tag by the end of your renewal month - $15.00 penalty plus interest.

2. Failure to transfer vehicle registration into your name within 20 calendar days of purchase $15.00 penalty.

3. Failure to register vehicle within 30 calendar days of moving into Alabama from another State with a valid out of state license plate - $15.00 penalty plus interest.

(4) CLASSES OF MOTOR VEHICLES:

Alabama law outlines classes of property for ad valorem tax purposes.

1. Class IV Motor Vehicles (15%)

This class includes all private passenger motor vehicles, private passenger motor vehicles under lease-purchase option agreement, motor vehicles registered in the name of a beneficiary of a trust, station wagons, sports utility vehicles (regardless of weight), vans and pickup trucks which weigh (8,000) pounds gross vehicle weight or less that are owned and operated by an individual for personal or private use and not for hire, rent or compensation.

2. Class I Motor Vehicles (30%)

This class includes all motor vehicles owned by public utilities and used in the business of such utilities.

3. Class II Motor Vehicles (20%)

This class includes all motor vehicles that do not fall within the definition of either Class IV or Class I motor vehicles. This class includes motorcycles, utility trailers, recreational vehicles, leased vehicles not for private use and without lease-purchase option, trucks weighing more than (8,000) pounds gross weight, and all vehicles used for commercial purposes.

(5) MOTOR VEHICLE ASSESSMENT PROCEDURES:

The average retail value is taken from National Market Reports, as of October 1st. This value is multiplied by 89% to arrive at market value. Multiply the market value by the appropriate assessment ratio 15%, 20% or 30% and round the results down to the nearest $20.00 to get the assessed value.

Ad valorem taxes on motor vehicles shall be assessed and collected forward on a current basis to coincide with the collection of motor vehicle registration fees. All accrued ad valorem tax on a motor vehicle for the previous tax year must be collected prior to vehicle registration.

An ad valorem tax lien attaches to a vehicle on (1) the date an individual originally brings the vehicle into Alabama, (2) date the vehicle is sold from a dealer's inventory, (3) date a vehicle is sold by an individual or (4) upon date a motor vehicle otherwise becomes subject to taxation.

Ad valorem tax is a property tax and not a use tax and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway.

(6) INSURANCE:

Owners registering their vehicles after January l, 2001 are required to provide their driver's license number or their Alabama identification card issued by the Alabama Department of Public Safety. Companies registering commercial vehicles will be required to provide federal employer identification number (FEIN) to county officials . at time of registration.

The owner's signature on the registration receipt will indicate that the information shown on the registration receipt is correct and that the vehicle is properly insured. No proof of insurance document will be required at the time of registration. The owner's signature and driver license number or Alabama ID # or FEIN are the only requirements.

Exempt vehicles include: semi-trailers, travel trailers, utility trailers, government-owned vehicles, for hire trucking companies regulated by the Public Service Commission and off-road vehicles such as road-graders, etc.

Proof of insurance is required to be carried in the vehicle along with a copy of your vehicle registration.

(7) AD VALOREM TAX VOUCHER

(Beginning date: August 1, 2000)

1. In order to receive a voucher, one of the following criteria must be met: (selling of a vehicle, trading of a vehicle, total destruction of a vehicle, theft without recovery or other transfer).

2. The credit can be applied to pay the ad valorem tax on another vehicle or vehicles acquired by the owner in conjunction with the sale or trade of the motor vehicle. Or if a vehicle is sold but no vehicle is purchased at the time, a credit voucher will be issued and may be used at a later date.

3. No voucher will be issued later than 60 days after the date a motor vehicle is sold, traded totally destroyed, permanently removed from Alabama, or stolen without recovery.

4. The voucher is valid for 12 months from the date of issuance.

5. The voucher can only be used in the county where the original taxes were paid.

6. The voucher can be transferred, at the direc­tion of the owner, to their spouse or dependent child.

(8) DRIVERS LICENSE:

1. First time drivers must go to the examiners' office for a test. The current fee is $5.00 cash.

2. If you are a licensed out of state driver you have 30 calendar days to go to the examiners' office for an eye exam and documentation for the issuing of an Alabama license.

3. Alabama Licenses are required to operate motor vehicles, motorcycles, and boats.

4. Driver licenses are good for a four-year period. The current fee is $23.00 for renewal. There is a grace period of 60 days on renewals.

(9) ALABAMA DEPARTMENT OF CONSERVATION & NATURAL RESOURCES:

All required hunting and fishing licenses must be in possession when hunting or fishing.

HUNTING:

In 1991 the Alabama Legislature passed a law that mandates all first time hunting license buyers, born on or after August 1, 1977, to complete a hunter education course prior to purchasing their first hunting license. Anyone 16 years of age or older and less than 65 years of age must have a hunting license. Current fee for State hunting license is $16.00. Current fee for lifetime hunting license for Alabama residents is $300.00.

FISHING:

All residents, 16 years of age or older and less than 65 years of age who fish with a rod

and reel or artificial bait, are required to have a fishing license. This license is also required to fish with hook and line outside county of legal residence. Current fee for State Rod and Reel fishing license is $9.50. Current fee for lifetime fishing license for Alabama residents is $150.00.

Note: Alabama residents, 65 years or older, are exempt from buying fishing and/or hunting licenses. Proof of age and residency will be required if checked.

(10) BOAT REGISTRATION:

(a) New owners must have a bill of sale and registration if used.

(b) Sales tax will be collected based on where the boat owner resides.

(c) New boat owners have 72 hours from date of purchase to register the boat.

(d) Used boat owners have 15 calendar days to transfer, with a valid boat decal and bill of sale

no grace period if decal is expired.

(e) Owner, with current out of state registration, has a grace period of 90 calendar days.

2. State boat fees are as follows:

(a) 15 feet & under $12.00

(b) 16 feet to 25 feet $16.00

(c) 26 feet to 39 feet $31.00

(d) 40 feet and over $51.00

3. All boat operators, 12 years old and older, must have a vessel license. As of

January 1, 2002, the age changes to 14 years old and older.

4. Once a boat is registered in your name you must renew each year based on the first letter of your last name (same as vehicles).

(11) MANUFACTURED HOMES:

All mobile homeowners must display a current mobile home decal. (a) If you are the owner of

the mobile home but not the owner of the land that it is on, your mobile home must be registered and the registration fee is to be paid each year between October 1st and November 30th. Failure to renew during renewal time or 30 calendar days after purchase or entering the State $10.00 penalty. (b) If you are the owner of the mobile home, the land it sits on and reside in the mobile home, it will need to be assessed with the land and subject to property taxes. In either case, a mobile home decal is given upon payment of the registration fee or ad valorem/ property tax. Failure to display a mobile home decal will result in a citation and penalty.

(12) STATE -COUNTY BUSINESS LICENSE:

The State of Alabama requires most businesses in the State to have a privilege license to operate

a business. The license is to be purchased in the Commissioner of Licenses' office in the home county of the business. Businesses must comply with all State and County laws. If doing business inside a city, it also must comply with city laws. To obtain more information you may contact the Commissioner of Licenses' office in your county.

(13) METHOD OF PAYMENT

Payment may be made as follows:

You may come to the Commissioner of Licenses' office at the courthouse or our satellite office in Hartselle, Alabama and make payment in person by cash, check or money order. (Sorry we are unable to accept out of state checks).

You may renew your vehicle registration by mailing a check or money order with your driver
license number or Alabama ID # or FEIN and signing the renewal card affirming you have insurance on the vehicle

Make check payable to:

SUE BAKER ROAN

COMMISSIONER OF LICENSES

MORGAN COUNTY COURTHOUSE

302 LEE STREET NE

P O BOX 668

DECATUR, ALABAMA 35602

(256) 351-4770