History of the Fairhope Single Tax Corporation (The Colony)

The Fairhope Tax Colony refers to the historical and philosophical origins of Fairhope, Alabama, rooted in the Single Tax movement. This movement was inspired by the economic ideas of Henry George, who advocated for a single tax based on the unimproved value of land. His vision sought to eliminate other forms of taxation, aiming to promote economic equality and reduce poverty.

Fairhope was founded in 1894 by a group of reformers who embraced this philosophy. They established the Fairhope Single Tax Corporation, which purchased land and leased it to residents. Instead of paying traditional property taxes, residents paid lease fees, which were used to support community services and development. This arrangement made Fairhope unique and allowed for a more collective approach to managing resources and infrastructure.

The Fairhope Single Tax Corporation continues to play a significant role in the local real estate system, owning approximately 4,600 acres in and around Fairhope. When purchasing property on Single Tax Colony land, buyers secure ownership of the buildings and other improvements on the property but not the land itself. Instead, they obtain a leasehold interest in the land and pay an annual rent to the corporation.

Annual Fees Include:

Taxes: An amount equal to the city, school district, county, and state property taxes that would normally be due if the land were privately owned.

Administrative Costs: A fee to cover the expenses of running the Single Tax Corporation.

Demonstration Fee: An additional charge used to fund community improvement projects. This fee embodies the Single Tax philosophy by reinvesting in the community to benefit all residents.

What Buyers Need to Know About Buying in the Fairhope Single Tax Corporation

• Before purchasing property within the Fairhope Single Tax Corporation, buyers are typically required to attend an orientation class. This class is designed to ensure buyers fully understand the unique aspects of owning property on Single Tax Colony land. If you schedule a quick closing this can be an issue if there is not a class scheduled. 
• Not all properties in Fairhope are Single Tax Colony land. Only approximately 25% of properties in Fairhope are the Colony.
• Leasehold properties may require special attention from lenders and title companies.
• Buyers should recognize that the leasehold arrangement might appeal to some future buyers but could also deter others unfamiliar with the system.
• When purchasing a home located on Single Tax Colony land, the buyer does not own the land. They will get a 99-year lease upon purchase. Each 99-year lease renews upon any transfer.

***It is HIGHLY recommend you READ through the documents at this link to see the Seller and Buyer responsibilities, fees, forms required and schedule your orientation. 

CLICK HERE TO READ THE TRANSFER INFORMATION