HB277 Alabama 2011 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsors

Harry ShiverJoe FaustSteve McMillan

Session

Regular Session 2011

Title

Property sold for taxes, excess amount paid at redemption to be held in escrow in county treasury, Sec. 40-10-28 am'd.

Summary

HB277 would require excess proceeds from tax sales to be held in escrow and paid out within a 10-year window to the rightful owner or successor, otherwise going to the county general fund.

What This Bill Does

The bill changes how excess money from property tax sales is handled. It requires the excess to be held in escrow by the county treasury until it is applied to the property's redemption or until the three-year redemption period ends. After the three-year period, and within 10 years of the tax sale, the excess must be paid to the property owner, their agent, or to someone who has since acquired title from the owner. If no one claims the excess within 10 years, the money becomes part of the county's general fund.

Who It Affects

• Property owners or their agents/successors who may be entitled to the excess funds after a tax sale.
• The county government (county treasury/commission), which will hold the funds in escrow and ultimately decide on payment or transfer to the general fund if unclaimed.

Key Provisions

• Excess from the sale of real estate for delinquent taxes shall be held in escrow in the county treasury until it is applied to redemption or the three-year redemption period has lapsed.
• After the three-year redemption period, and within 10 years after the tax sale, the county commission shall order payment of the excess to the property owner, the owner's agent, or to someone who has obtained title from the owner, in the same manner as payments for excess from personal property tax sales.
• If the excess is not called for within 10 years after the sale, the county treasurer must place the excess in the county's general fund and record the details.

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

Subjects

Property, Real and Personal