Alabama Tax Lien Real vs Personal Property

[Shimira Greene]

@Denise Evans,

If a tax deed property is an empty lot with only a billboard sign on it. How is this treated? Is the billboard considered to be real or personal property?

[Denise Evans]

It is probably personal property. There is no Alabama appellate decision on this point. Many states have statutes clarifying, but Alabama does not.  The IRS treats billboards as improvements to realty. Appraisers treat them as personal property. Most billboards either have lease with definitions about the structure itself and what happens, or a permanent easement.  Many leases are prepaid, so there is no income stream.  Permanent easements are almost always prepaid, so there is no income stream. The company who paid to erect the billboard, or their successors, has redemption rights.  Even if there is a monthly or quarterly lease payment, you cannot simply demand they now pay you. It is illegal for a tenant (residential, commercial, billboard, etc) to basically throw the landlord under the bus and "attorn" to someone like the tax sale investor. You will have to go through ejectment. But, if done improperly, it could end up costing you lots of money and you get nothing in return, not even legal fees.  In short, you can't rely on Google for an answer. It is complicated.