Vehicle Registration

To avoid delays, please bring your valid, unexpired driver license AND printed Alabama insurance card with you to the office or include copies of them with all mail renewals.

License plates must be renewed annually. If your address or insurance information has changed since the last time you renewed your license plate, contact our office (by phone, email or in person) so we may update your information. Do not attempt to renew your license plate until your information has been updated. Your tax district may have changed, and the cost printed on your renewal notice may be incorrect.

Failure to renew your license plate during your scheduled renewal month will result in penalties and interest. The official notice to renew the license plate for a vehicle is the vehicle’s registration. Some counties (Tuscaloosa County included) mail courtesy reminders for license plate renewals, but the failure of a person to receive a reminder notice in the mail does not waive any penalty or interest charges levied under Alabama law if a license plate is not renewed on time.

If a vehicle owner is deceased, the deceased owner’s name will need to be removed from the title and registration prior to renewing the tag.

Online Insurance Verification System (OIVS)

In accordance with Alabama law, license plate issuing officials must verify the insurance status of vehicles prior to each license plate transaction. Alabama law provides that no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy.

Licensing officials use the Online Insurance Verification System (OIVS) to verify the insurance information for all personal insurance policy holders. Registrants must provide the insurer’s NAIC and policy number for each vehicle registration. If this information cannot be verified through OIVS, the registrant will be required to present a physical copy of the vehicle’s valid, unexpired Alabama insurance, most commonly an insurance card.

Prior to registering vehicles, driver license and non-driver ID cards for all owners on a vehicle must be verified. Most Alabama licenses and non-driver IDs may be electronically verified, but valid, unexpired out-of-state driver licenses or non-driver ID cards must be presented.

Mandatory Liability Insurance (MLI) Notices & Suspensions

Periodically, the Alabama Department of Revenue (ADOR) electronically checks the insurance information for vehicle owners. If ADOR is not able to verify the insurance information, a notice will be sent to the vehicle owner to verify the insurance information. If ADOR does not receive an acceptable response to the initial notice, the license plate will be suspended pending an acceptable response to the MLI suspension.

If there was an MLI violation, the cost to reinstate a license plate after the first offense is $200, while second and subsequent offenses cost $400 each. Reinstatement fees must be paid in cash.

If your license plate has been suspended for MLI reasons, you will have to reinstate your license plate before being able to renew it. To reinstate your license plate, bring in your proof of insurance from the date the state asked you to verify along with your current proof of insurance. You may contact our office directly if you have questions related to the MLI reinstatement process.

Vehicle owners who are dissatisfied with the actions of ADOR regarding MLI verification and suspension may file an appeal with the Alabama Tax Tribunal.

Vehicle Registration Requirements

Alabama law provides 20 calendar days for the new owner of a vehicle to register a vehicle and purchase a license plate. A new resident in Alabama has 30 calendar days to transfer his or her out-of-state registration to Alabama. Alabama law requires that a vehicle’s current (unexpired) registration and insurance be kept in the vehicle at all times. The person driving the vehicle must also keep his or her valid driver license in the vehicle.

Please be aware that the requirements below are general, and that other documentation is sometimes required to process a title and/or registration. Every situation is different, and until all paperwork can be examined, there is no way to know if any additional documentation may be necessary.

Attention: Title applications will NOT be processed beginning 30 minutes prior to closing time at any of our offices. Personalized tag messages must be reserved online (and be approved) prior to coming to the office to process the registration.

To register a Newly Purchased Vehicle, you will need:

1. Title or Manufacturer’s Statement (Certificate) of Origin or Alabama Title Application
2. Bill of Sale
3. Unexpired Driver License or Non-Driver ID (for all owners)
4. Alabama Insurance Card (hard copy, not electronic)
5. The vehicle must be taken to the License Office for inspection if using a Manufacturer’s Statement (Certificate) of Origin or a title from another state. (Please note that our office does not inspect vehicles in the rain.)

To register a State-to-State Transfer with a Lienholder* (no change of ownership), you will need:

1. Legible Copy of the Original Certificate of Title
2. Out-of-State Registration
3. Power of Attorney (If a Leased Vehicle)
4. Unexpired Driver License or Non-Driver ID (For All Owners)
5. Alabama Insurance Card (hard copy, not electronic)
6. The vehicle must be taken to the License Office for inspection. (Please note that our office does not inspect vehicles in the rain.)

* Some states send the valid original title to the owner, not to the lienholder. People registering vehicles from the following states must surrender their out-of-state titles to apply for Alabama titles: Kentucky, Maryland, Minnesota, Missouri, New Jersey, New York, Oklahoma and Wisconsin. * Michigan, Montana, South Dakota and Wyoming give the vehicle owner the choice of having the title mailed to the owner or to the lienholder. People registering vehicles from these four states must either surrender the original title or provide proof that the original title was mailed to the lienholder.

Vehicle Registration Fees

Registration Fees are generally comprised of 3 parts: a license plate fee (varies according to the license plate type), an issue fee ($1.25), and ad valorem tax (varies depending upon the market value of the vehicle and the tax district of the vehicle owner). However, additional fees and/or exemptions may apply depending on the type of license plate selected and the eligibility of the registrant. When applicable, payment of sales tax will also be required.

License Plates (aka Tags)

The license plate required for a vehicle will vary depending upon the type, use and weight of the specific vehicle. Most vehicles are eligible for a variety of license plate types. Alabama has a huge selection of distinctive license plates in addition to the standard county tag from which to choose. Most distinctive license plates vary in cost from the standard tag, and some require proof of eligibility to purchase. Please visit the ADOR website for information on specific license plates, and their uses, costs, requirements and restrictions.

Personalized License Plates

Personalized license plate messages must be reserved online (and be approved) prior to coming to the office to process the registration.

Most license plates may be personalized. To check the availability of your desired personalized message (and to reserve it), visit ADOR’s MyDMV Portal. Select the option to “Reserve a Personalized Plate” and follow the prompts. Only letters, numbers and spaces are acceptable characters for license plate messages. Dashes and all other special characters are not allowed.

Personalized tag message reservations made are only valid for a limited time. If you reserve a personalized message through MyDMV, you must still come to the License Office to order the license plate. If your reservation expires before you have ordered the plate, the message will be released, and anyone may get it. If you plan to upgrade the current license plate on your vehicle outside your renewal month, you must bring the valid license plate from the vehicle when you come in to process the upgrade. However, if you are reserving a message for a renewal or for a new purchase, there is usually no need to bring in the previous license plate.

Ad Valorem Tax

Ad valorem tax is the property tax on the vehicle that is paid each year when purchasing a license plate. The amount of ad valorem tax due is based on the tax district in which the vehicle is registered, the class of the vehicle, and the vehicle’s market value as determined by ADOR.

• Class IV motor vehicles are assessed at 15% of the market value – All private passenger motor vehicles to include private passenger vehicles under lease-purchase option, vehicles registered in name of a trust or beneficiary, station wagons, sport utility vehicles, vans and “pickup” trucks which weigh twelve thousand (12,000) pounds gross vehicle weight (GVW) or less that are owned and operated by an individual for personal or private use and not for hire, rent, or compensation.
• Class II motor vehicles are assessed at 20% of the market value – All motor vehicles that do not fall within the definition of either Class IV or Class I motor vehicles. This class includes motorcycles, trailers, recreational vehicles, low speed vehicles, minitrucks, leased vehicles not for private use or without lease-purchase option contractual agreements, trucks weighing more than twelve thousand (12,000) pounds gross weight, and all vehicles used for commercial purposes.
• Class I motor vehicles are assessed at 30% of the market value – All motor vehicles owned by public utilities and used in the business of such utilities.

The ad valorem tax on used vehicles is normally paid at the time of registration forward until that person or business’s next renewal month. In some situations, back ad valorem tax may be due. Ad valorem tax is a property tax and is NOT related to the usage of a vehicle. If a vehicle is stored and is not driven, that does not affect the amount of ad valorem tax that may be due.

Ad Valorem Tax Credit

Upon the sale, trade, total destruction, permanent removal from Alabama, theft without recovery, or other transfer of a motor vehicle, the owner may apply for a prorated credit of the ad valorem taxes paid for the remainder of the current period for which ad valorem taxes have been paid. No vehicle taken out of service (e.g., broken down, put into storage, etc.) by the owner is eligible for ad valorem tax credit.

Ad valorem tax credit can only be requested in the county in which the license plate was purchased, and a person has up to 12 months from the date of the disposition of a vehicle to apply for ad valorem tax credit. The credit may be used to pay ad valorem taxes on a replacement vehicle or other vehicles acquired by the owner.

If the ad valorem tax credit is not used at the time of application, a refund check for credit will be sent to the owner. Refund checks are normally mailed by the 20th day of the month after application for ad valorem tax credit has been made. However, the ad valorem tax credit, at the direction of the owner, can be transferred to a spouse or dependent child only, or the person or corporation that shall have rented or leased the motor vehicle from the owner.

Required Documentation for Ad Valorem Tax Credit

Ad valorem credit vouchers shall be supported by proper documentation which must include a complete description of the vehicle for which credit is being requested.

1. Casual Sale or Trade – Bill of Sale or Affidavit of Buyer and Address
2. Sale or Trade to a Licensed Dealer – Dealer’s Bill of Sale
3. Theft of Vehicle – Theft Report by Law Authority or Insurance Document
4. Removal of Vehicle from Alabama – Copy of Out-of-State Registration
5. Totally Wrecked – Total Loss Letter, Affidavit of Settlement with Insurance Company or similar