Covington County revenue commissioner: state index, rising sales push assessments higher; 7% cap runs through 2029

Chuck Harrison, the county's revenue commissioner, told the Covington County Commission on July 28 that a state 'index study' and increased local real-estate activity have pushed assessed property values higher, and that a state-set 7% annual cap on increases (applied across three years) remains in place under a sunset provision set to end in 2029.

"We haven't seen taxes going down. We've seen them going up," Harrison said, explaining the index study and the state's reappraisal approach. He said Alabama uses arms-length sales for neighborhood indexes and that the county is in the fourth year of a reappraisal cycle. Harrison described the assessment classes used to compute tax liability: Class 3 (homestead) assessed at 10%, Class 2 (rental/commercial) at 20%, and Class 1 (utilities/railroads) at 30%.

Harrison provided a 2025 disbursement snapshot: roughly $17.6 million in collections, with the county receiving about 41.2% and schools about 31.27% (cities about 9.5%). He said the state-calculated index rose from 1.21 to 1.61, and that, absent the 7% cap, a larger immediate adjustment would have been required to reach parity with statewide values.

The commissioner urged property owners to check available exemptions — including the homestead, over-65 and military-disabled exemptions — and to use the county's assessment office and the board of equalization to contest values. "We just sent out 30,000 notices... you have the chance to come in and contest your properties," he said.

Why it matters: the state index and reappraisal schedule directly affect assessed values used to compute taxes. Harrison noted the sunset law limits annual increases to a maximum of 7% over the three-year period; that statutory provision is scheduled to expire in 2029 unless changed by the Legislature.

Next steps: residents who disagree with their assessed values can contact the county assessment office (Harrison gave a phone number) and may file with the board of equalization when it convenes.