Tax Abatements

See taxes for millage and tax rates.

Property Tax Abatements

The Opelika City Council has the ability to grant property tax abatements on real and personal property for up to a ten year period for qualifying companies, excluding taxes allocated for schools. Commercial and industrial property in Alabama is assessed at 20% of fair market value.

Sales & Use Tax

The City Council also has the authority to grant sales and use tax exemptions for purchases of machinery and equipment (M&E) and construction materials. M&E purchases are taxed at a rate of 3.125%, which is a combination of city, county, and state taxes. The City Council can abate 2.875% of the 3.125%. Construction materials are taxed at the general rate of 9.0%, while the City Council has the discretion to abate 8.0% of the total. This initial sales tax exemption could save a company a substantial amount in up front expenditures.

Guidelines for property tax abatements and sales and use tax exemptions, as well as applicable forms and contacts can be obtained from the Alabama Department of Revenue website.


View procedures to follow to obtain property tax abatements and sales and use tax exemptions.