SB332 Alabama 2011 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyQuinton RossLinda Coleman-MadisonPriscilla DunnBobby D. SingletonGeorge M. “Marc” KeaheyJerry L. Fielding

Session

Regular Session 2011

Title

Redemption of land sold for taxes, interest rate reduced only on tax amount due on date of sale, Sec. 40-10-122 am'd.

Summary

SB332 changes how redemption of land sold for taxes works by limiting interest to the tax amount due at sale, reducing interest on premiums and improvements, and making the changes retroactive to 2008.

What This Bill Does

If someone wants to redeem land sold to a private party, they must deposit the sale amount with the judge of probate and pay interest only on the tax due at the sale date. For portions of the excess bid up to 15% of market value, interest is limited to the tax due plus taxes already paid; any unpaid taxes must be paid before redemption. The bill also charges interest on insurance premiums and the value of permanent and preservation improvements, and it sets up a process to determine those improvement values using referees and, if needed, an umpire, with an online payment option and specific costs. The rules apply to residential properties as well, and the act is retroactive to October 1, 2008, though no refunds of interest or excess bid are due; there is no automatic refund for past amounts.

Who It Affects

• Redeemers (people seeking to redeem land sold at tax sale): must pay a deposit equal to the sale price, with interest only on the tax due at sale, and may owe for unpaid taxes, premiums, and improvement values; they must follow the improvement valuation process.
• Purchasers or transferees of land sold at tax sale: their charges (interest on taxes, premiums, and improvement values) and their rights to compensation can be affected; they may need to provide statements of improvement values and participate in the referee/umpire process, with possible forfeiture of some compensation if referees are not appointed.

Key Provisions

• Redemption deposits: the redeemer must deposit with the judge of probate the sale amount, with interest only on the tax due from the date of sale; if an excess bid portion is ≤ 15% of market value, interest is only on the tax amount due plus taxes paid.
• Taxes and costs: if taxes on the land are unpaid, the redeemer must pay them before redeeming; redeemers also pay costs and a $0.50 probate judge fee; online redemption is allowed.
• Improvements and premiums: all insurance premiums and the value of permanent and preservation improvements are subject to interest at 12% per year; values are determined and paid to the purchaser as applicable.
• Residential property: in addition to other requirements, the redeemer must pay the purchaser for all insurance premiums and for the value of preservation improvements for the residential structure.
• Valuation process for improvements: the purchaser must provide a written value for improvements; the redeemer can accept or dispute it and appoint a referee; referees appoint an umpire if they disagree, and the award becomes final; if no referee is appointed, the purchaser may forfeit compensation and the court may determine value.
• Retroactivity and refunds: the act is retroactive to October 1, 2008, but there are no refunds of interest or excess bid already paid.
• Effective date: the act takes effect on the first day of the third month after passage.

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