SB177 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2012

Title

Real Property, tax sales delinquent ad valorem tax, excess amounts paid to rightful owners, Sec. 40-10-28 am'd

Summary

SB177 clarifies who can receive excess money from delinquent real estate tax sales, requires those funds to be held in escrow, and sets a 10-year deadline before unclaimed funds go to the county.

What This Bill Does

It defines who is the rightful owner entitled to the excess and the exact conditions under which the excess can be paid. It requires the excess funds to be held in an escrow account in the county treasury until a proper payment request or redemption action is made. If no valid claim is made within the specified timeframes, the funds may be moved to the county general fund and, later, may be payable to the rightful owner within 10 years after being placed in the general fund, or become county property if still unclaimed.

Who It Affects

• Rightful owners of property sold for delinquent taxes (and their agents or legal representatives), who would have defined ways to claim or use the excess funds.
• Counties and their treasuries, which would manage the escrow and may receive unclaimed funds into the county general fund if not claimed within the time limits.

Key Provisions

• Defines 'rightful owner' to include the owner, the owner's agent or legal representative, or a purchaser who bought from the owner after the unpaid tax assessment, with conditions to prove eligibility.
• Requires excess funds from a tax sale to be held in escrow in the county treasury until a proper application for payment or redemption occurs.
• Specifies three routes for claiming the excess: (a) apply for the excess to be used for redemption during the three-year redemption period, (b) request the excess and waive redemption, or (c) request payment after the redemption period within 10 years of the tax sale.
• If the excess is not claimed within three years after the sale, the county may move the funds to the county general fund and record the transfer.
• If funds are in the general fund, the county commission may order payment to the rightful owner or their heirs within 10 years; if not paid within that time, the funds become property of the county.
• Effective date: the act becomes law on the first day of the third month after passage and governor's approval.

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

Subjects

Ad Valorem Tax