HB6 Alabama 2010 Session

Summary

Primary Sponsor

Joseph C. Mitchell

Democrat

Session

Regular Session 2010

Title

Property sold for nonpayment of taxes, rate of interest required for redemption same as the residential mortgage rate published by the Federal Home Loan Mortgage Corporation at a certain time, Secs. 40-10-121, 40-10-122 am'd.

Summary

HB6 would tie the interest charged when redeeming property sold for unpaid taxes to the residential mortgage rate published by FHLC, changing redemption costs and related procedures.

What This Bill Does

It changes the redemption interest rate from a fixed 12% to the FHLC residential mortgage rate for the month before redemption is filed. It requires the redeemer to pay the sale price, delinquent taxes, taxes due in subsequent years, and costs with interest at the new rate, and it allows online redemption. It updates how assessed values are determined for years after the sale, creates a process with the Board of Equalization and referees to resolve value disputes for improvements, and includes specific provisions for urban renewal areas. The measure becomes effective for tax years beginning October 1, 2011.

Who It Affects

• Property owners or others seeking to redeem land sold for unpaid taxes; redemption costs will be calculated using the mortgage-based interest rate and may involve valuation disputes for improvements.
• Purchasers who bought land at tax sale (including cases where land is sold to someone other than the state); they face new rules for calculating interest on the redemption amount and for handling excess bid scenarios, taxes, and costs.
• County probate judges, tax assessors, boards of equalization, and municipalities (especially in urban renewal areas); they administer redemption, determine assessed values, hear protests, and handle related charges and improvements valuations.

Key Provisions

• Interest rate on redemption tied to the residential mortgage rate published by FHLC or successor for the month before filing the redemption application, replacing the prior rate of 12%.
• Redemption amount includes the land sale price, delinquent taxes, taxes due for subsequent years, and costs/fees; interest on these amounts at the mortgage rate; online redemption allowed with a small probate fee.
• Tax assessor must annually assess values for years after sale using a percentage of fair market value; Board of Equalization can hear protests and set future assessed values; a referee/umpire process determines the value of improvements.
• In urban renewal or redevelopment areas, redemption payments include additional items such as insurance premiums and the value of permanent or preservation improvements, with interest at the mortgage rate.
• Additional rules for excess bid scenarios in non-state sales and the treatment of taxes paid or unpaid by the purchaser; costs and officer fees apply.
• Effective for tax years beginning October 1, 2011.

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

Subjects

Property, Real and Personal