Press Release
Shelby County Residents Face Sharp Increase in Vehicle Tag Renewal Fees
SHELBY COUNTY, Ala. — Many Alabamians are grappling with substantial hikes in vehicle tag renewal fees, with some residents reporting increases exceeding $100. This surge is largely attributed to a recent change in the assessment company used by the state for determining vehicle market values.
Phil Burns, Chief Operating Officer of Shelby County, highlighted the confusion among residents, stating, "They’re confused because they thought the value of vehicles was on appreciation; appreciation goes down—and it’s not, it’s on market value." Traditionally, vehicle market values were expected to decline, but recent trends have shown increases or stabilization.
In 2023, Alabama’s Department of Revenue transitioned from using Penton Media to Price Digest for vehicle assessments, contributing to the altered appraisal values. Burns clarified that the increases in fees are not due to registration fee adjustments or millage rate changes, but rather the rising market values of vehicles influenced by factors such as inflation and supply-demand dynamics.
This upward trend in vehicle market valuations—reported to have risen significantly from 2021 to 2024—has affected residents statewide, not just in Shelby County. Burns further noted the implications of ad valorem tax, which includes millage rate and property classifications, on the overall cost of vehicle tags.
Residents are encouraged to check their registration forms to understand how market values for their vehicles have fluctuated over the years. "If they can pull up their last few years, they can see how that market value has changed—whether it’s gone up or down," Burns advised.
As a point of reference, property tax valuations in Alabama are determined based on the status of properties as of October 1 of the previous year, with a reported decline of 2 percent in this year’s valuation. Officials remain hopeful for a continued downward trend.
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