HB219 Alabama 2012 Session

Summary

Primary Sponsor

Mac McCutcheonMadison County Commissioner

Republican

Session

Regular Session 2012

Title

Deed recording, judge of probate, person must present proof of actual purchase price, Sec. 40-22-1 am'd

Summary

HB219 would require proof of actual purchase price or value when recording property deeds with the judge of probate, and impose penalties if proof is not provided; otherwise taxes would be based on assessed value.

What This Bill Does

Changes how recording taxes are calculated by requiring proof of actual price or value for property when recording with the judge of probate. If proof is provided, the tax is based on that actual price/value; if not, the tax is based on the most recent assessment value. There are penalties for failing to provide proof or for submitting false proof ($100 or 25% of the tax due, whichever is greater). The Department of Revenue will set rules on what counts as adequate proof, and tax revenue is split between state and county treasuries.

Who It Affects

• Property owners or buyers presenting real or personal property instruments for recording must provide proof of the actual purchase price or actual value, or the tax will be based on the assessed value.
• Judges of probate, the Department of Revenue, and the state and county treasuries will administer, enforce penalties, and distribute the tax revenues.

Key Provisions

• Requires proof of actual purchase price or actual value for property recorded with the judge of probate.
• If proof is not provided, the tax is based on the property's assessed value and penalties apply.
• Penalties for failing to provide proof or submitting false proof: $100 or 25% of the tax due, whichever is greater.
• Department of Revenue will establish rules defining what constitutes adequate proof to accompany recorded instruments.
• Judges of probate calculate and collect the tax; for multi-county property, the Department of Revenue determines county-specific values and taxes; deposits may be used to secure immediate filing with refunds of excess.
• Tax revenue is distributed: two-thirds to the State Treasury and one-third to the county treasuries.

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