HB177 Alabama 2012 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2012

Title

Real Property, tax sales delinquent ad valorem tax, excess amounts paid to a person or entity who has redeemed the property, Sec. 40-10-28 am'd

Summary

HB177 changes how any money left over after a real estate tax sale is handled, letting only redeemers receive it, holding the funds in escrow for 3 years, and sending unclaimed money to the county unless the rightful owner proves redemption within 10 years, plus creates a voucher option for redeeming parties.

What This Bill Does

Amends Section 40-10-28 to allow only the person or entity who redeemed the property to receive the excess money from a tax sale. Requires the excess funds to be held in an escrow account in the county treasury for three years after the sale, pending proper application and proof of redemption. If no valid claim is made within the three-year period, the funds are deposited into the county general fund and may later be paid to the rightful owner if they prove redemption within 10 years; otherwise the funds become county property. directs the Department of Revenue to create rules that authorize a voucher equal to the excess bid for redeeming parties, which can be used with the judge of probate to complete redemption, with necessary forms provided.

Who It Affects

• Redeemers (people or entities who redeemed property sold at tax sale) who may receive the excess funds, subject to providing proof of redemption and following the three-year escrow process; they may use a voucher to facilitate redemption.
• Other claimants (property owners or their heirs/agents who did not redeem) whose access to the excess is restricted; if they are not the redeemer and no valid claim is made within the established timeframes, the funds go to the county general fund, though they could still receive payment if they can prove redemption within 10 years.

Key Provisions

• Only the redeemer (or their agent) may receive the excess funds from a tax sale, with proof of proper redemption required.
• Excess funds are held in escrow in the county treasury for three years after the tax sale; if no proper request is made, funds are deposited to the county general fund.
• If a rightful owner proves redemption within 10 years after the sale, the county commission must order payment to the owner or their representative; otherwise the funds become county property.
• The Department of Revenue will issue rules authorizing a voucher for the excess bid to redeeming parties to use in completing redemption, with forms provided.

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

Subjects

Ad Valorem Tax