HB6 Alabama 2010 1st Special Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Co-Sponsors

Merika ColemanCraig FordJoe HubbardJohn W. RogersElaine BeechRod ScottLawrence McAdoryDexter GrimsleyMary MooreThomas JacksonLaura HallArtis McCampbellBarbara Bigsby BoydDemetrius C. NewtonPebblin W. WarrenThad McClammyOliver RobinsonAlan HarperJuandalynn Givan

Session

First Special Session 2010

Title

Principal campaign committees and political action committees, contributions and expenditures, reporting to Secretary of State, periodic full disclosures of sources and amounts of contributions, frequency of reporting of contributions Sec. 17-5-8 am'd.

Summary

HB6 would tie the interest charged for redeeming tax-sold Alabama property to the FHMC residential mortgage rate and expand redemption rules, including online payments and detailed valuation procedures for improvements in urban renewal areas.

What This Bill Does

It changes how interest is calculated when redeeming land sold for unpaid taxes, linking it to the FHMC residential mortgage rate for the month before filing to redeem. Redeemers must deposit the redemption amount with the probate judge, including taxes due, costs, and fees, with online payment allowed. The bill adds special rules for properties in urban renewal areas, including costs for insurance and improvements and a formal process to determine the value of those improvements, with a dispute resolution mechanism. It also sets the administrative procedures for assessing future tax years and for notifying and paying involved parties, with a specific effective date of October 1, 2011.

Who It Affects

• Redeemers (individuals or entities seeking to redeem property sold for unpaid taxes) would face a rate tied to the FHMC residential mortgage rate, must deposit funds with the probate judge, and may owe taxes due plus costs; online redemption is allowed.
• Purchasers of tax-delinquent property (state or private buyers) would be affected by receipt of redemption payments, requirements to provide valuation information for improvements, and adjusted costs and taxes in urban renewal areas.

Key Provisions

• Redemption interest rate tied to the Federal Home Loan Mortgage Corporation's residential mortgage rate for the month preceding the filing of the redemption application, replacing a fixed rate structure.
• Redemption payments must be deposited with the probate judge and include the original sale amount, interest, taxes due since the sale, and costs/fees; online payment is permitted; a $0.50 fee to the probate judge is required for services.
• In urban renewal or redevelopment areas, redeeming must include additional amounts for insurance premiums and the value of permanent and preservation improvements, with interest calculated at the FHMC rate and a defined process to value these improvements.
• A detailed process for valuing improvements includes written demands, competing appraisals by appointed referees, possible use of an umpire, and final binding awards; if a party does not nominate a referee, they may forfeit compensation rights.
• For land redeemed that was sold to someone other than the state, the redemption amount includes the same interest rate mechanics and required taxes due, plus adjustments for excess bid and related costs.
• The act becomes effective for tax years beginning on or after October 1, 2011.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Elections