HB59 Alabama 2010 Session

Summary

Primary Sponsor

James O. Gordon

Democrat

Session

Regular Session 2010

Title

Ad valorem tax, redemption of property sold for delinquent taxes, subsequent purchases, redemption payment altered, Secs. 40-10-122 am'd.; Act 2009-508, 2009 Reg. Sess. am'd.

Summary

HB59 would remove the 15% of market value cap on the excess bid portion required when redeeming land sold to private parties for delinquent taxes in urban renewal or redevelopment areas.

What This Bill Does

It eliminates the requirement that redemption payments for lands sold to private parties (not the state) include a portion of the excess bid up to 15% of market value in urban renewal or redevelopment areas. Other redemption costs remain, including 12% annual interest on taxes paid, interest on the excess bid, and any taxes due, plus standard costs and fees. For properties in urban renewal or redevelopment areas, redeeming parties must also pay insurance premiums and the value of permanent improvements (and, for residential structures, preservation improvements), all with 12% interest, and the value of improvements is determined through a formal appraisal process with proposed demands, referees, and possibly an umpire with a final binding award.

Who It Affects

• Redemptions of lands sold to private parties (not the state) in designated urban renewal or redevelopment areas would no longer owe the 15% excess bid cap within the redemption payment.
• Private purchasers or transferees of such lands would be affected because the portion of the redemption payment corresponding to the excess bid up to 15% of market value would no longer be required to be paid to them.

Key Provisions

• Eliminates the requirement to pay the portion of the excess bid up to 15% of market value in redemptions of lands sold to private parties (not the state) within urban renewal or redevelopment areas.
• Retains other redemption costs, including 12% interest on taxes paid, interest on the excess bid, and any taxes due, plus costs and fees to officers and a $0.50 probate judge fee.
• In urban renewal or redevelopment areas, requires redemptioners to pay all insurance premiums and the value of permanent improvements, with 12% interest on these amounts.
• For properties with a residential structure, requires payment of insurance on the residential structure and the value of preservation improvements, with 12% interest.
• Defines and governs the valuation process for improvements via written demand, referees, possible umpire, and a final binding award.
• Effective date: September 1, 2010.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation