Alabama Attorney General Opinion 1979-0208

LEE L. HALE DEPUTY ATTORNEY GENERAL CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA MAY 24 191 ADMINISTRATIVE BUILDING 64 NORTH UNION STREET MONTGOMERY, 36130 FFICE OF THE ATTORNEY GENERAL 00Q08 WILLIAM M. BEKURS. JR. EXECUTIVE ASSISTANT WALTER S. TURNER CHIEF ASSISTANT ATTORNEY GENERAL JANIE NOBLES ADMINISTRATIVE ASSISTANT (205) 832-5640 HERBERT I. BURSON, JR. B. FRANK LOEB PHILIP C. DAVIS RON BOWDEN JOHN J. BRECKENRIDGE WILLIAM L. THOMPSON Assistant Attorneys General Revenue Department Honorable Sara R. McMullen Tax Assessor 115 Courthouse Tuscaloosa, Alabama 35401 Ad Valorem Taxes Owner of property on October 1 is legally liable for ad valorem taxes for entire tax year. Dear Mrs. McMullen: In your request for an opinion dated March 9, 1979, you provide documents which show that the Educational Building Authority of the City of Tuscaloosa purchased certain property from Mr. Robert C. Morrow on December 27, 1977. Paragraph No. 5 of the contract of sale provides that taxes shall be appor- tioned between the seller and the purchaser as of the date of closing, which is stated in the contract as being on December 22, 1977. You ask whether the Educational Building Authority of the City of Tuscaloosa is required to pay its prorated part of the ad valorem taxes to December 27, 1977, (date when deed was recorded) in accordance with the contract of'sale, given its exemp- tion from such taxes under §16-17-14, Code of Alabama 1975. Contractual agreements entered into between the buyer and the seller do not affect their tax liabilities as between them and the State taxing authorities. Any contractual agreements for the payment of taxes apply to the contracting parties only, and do not affect the person to whom the tax authorities look for the taxes owed on property. Consequently, the contractual obligations between the Educational Building Authority and the seller are irrelevant to you as tax assessor. The law day for ad valorem tax purposes in Alabama is October 1, the first day of any given tax year. The person owning the prop- erty on October 1, is liable for the taxes for said property for the entire year. United States v. Alabama, 313 U.S. 274, 61 S.Ct. 1011, 85 L.Ed 1327; Johnson v. State, Ex rel City of Birmingham, 245 Ala. 499, 17 So.2d 662. Therefore, if Mr. Morrow owned the subject property on October 1, 1978, he would be liable for the taxes for the 1979 tax year, and he is the one to whom you would look as tax assessor for said taxes. If the Educational Building Authority owned the subject property on October 1, 1978, then the Building Authority would be liable for the taxes for the 1979 tax year. Since they are a tax exempt entity, no taxes for the 1979 tax year would be owed. Yours very truly, CHARLES A. GRADDICK Attorney General BY- RON BOWDEN Assistant Attorney General RB/mr