The General Assembly may provide for the ad valorem taxation by the State or any of its subdivisions of all real and personal property. The assessment of all property shall be equal and uniform in the following classifications:
(1) All real and personal property owned by or leased to manufacturers, utilities and mining operations and used by the manufacturer, utility or mining operation, in the conduct of such business shall be taxed on an assessment equal to ten and one half percent of the fair market value of such property.
(2) All real and personal property owned by or leased to companies primarily engaged in transportation for hire of persons or property and used by the company in the conduct of such business shall be taxed on an assessment equal to nine and one half percent of the fair market value of such property.
(3) The legal residence and not more than five acres contiguous thereto shall be taxed on an assessment equal to four percent of the fair market value of such property.
(4) Agricultural real property which is actually used for such purposes shall be taxed on an assessment equal to:
(A) four percent of its value for such purposes when owned or leased to individuals or partnerships and certain corporations which do not:
(i) have more than ten shareholders;
(ii) have as a shareholder a person (other than an estate) who is not an individual;
(iii) have a nonresident alien as a shareholder; and
(iv) have more than one class of stock.
(B) six percent of its value for such purposes when owned or leased to corporations, except for certain corporations specified in (A) above. Provided, that the General Assembly shall by general law provide for a penalty system on lands classified as agricultural lands to insure the proper utilization of this classification.
(5) All other real property not herein provided for shall be taxed on an assessment equal to six percent of the fair market value of such property.
(6) All inventories of business establishments shall be taxed on an assessment equal to six percent of the fair market value of such property.
(7) All farm machinery and equipment except motor vehicles licensed for use on the highways owned by farmers and used on agricultural lands shall be taxed on an assessment equal to five percent of the fair market value.
(8)
(A) Except as provided in subitem (B) of this item, all other personal property must be taxed on an assessment equal to ten and one half percent of the fair market value of the property.
(B)
(1) Personal motor vehicles which must be titled by a state or federal agency, limited to passenger motor vehicles and pickup trucks, as defined by law, must be taxed on an assessment equal to the following percentage of fair market value of the property:
| Property Tax Year | Percentage |
|---|
| year 1 | 9.75 |
| year 2 | 9 |
| year 3 | 8.25 |
| year 4 | 7.5 |
| year 5 | 6.75 |
| year 6 and after | 6 |
(2) This subitem applies for property tax years beginning after 2001 or for earlier tax years as the General Assembly may provide by law.
