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.