SB216 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Tammy Irons
Democrat
Co-Sponsors: William “Bill” M. Beasley Ben H. Brooks Arthur Orr Jerry L. Fielding
Session: Regular Session 2012
Title: Deed recording, judge of probate, person must present proof of actual purchase price, Sec. 40-22-1 am'd (2012-20320)
Summary: SB216 requires proof of the actual purchase price or actual value when recording deeds and similar instruments, and bases the tax on that proof with penalties if proof is not provided.
What This Bill Does
When a deed or similar instrument is presented for recording, it must be accompanied by proof of the actual purchase price or actual value of the property. If proof is not provided, the privilege tax is calculated based on the property's assessed value and penalties may be added. The Department of Revenue will develop a form for attesting to the actual value or price, and the judge of probate will determine the tax due, with exemptions and special rules for multi-county properties and various transfers.

Who It Affects
Property owners or parties conveying real or personal property who present instruments for recording and must provide proof of value or price (or face penalties).
Judges of probate, who calculate the tax, enforce the proof requirement, handle multi-county determinations, and assess penalties.
The Department of Revenue, which develops the attestation form and clarifies value/price determinations (including multi-county valuations).
Counties and the State, which receive the tax revenue (2/3 to State, 1/3 to counties) and manage distribution, including per-county shares in multi-county properties.
Tax-exempt institutions and certain transfers that are exempt from tax, which may be recorded with no tax collected and stamped as such.

Key Provisions
Amends Section 40-22-1 to require proof of actual purchase price or actual value for instruments conveying property, with penalties if not provided and tax based on value when proof is lacking.
Exempts certain transfers from the tax (e.g., mortgage transfers already taxed, deeds for nominal consideration to perfect title, re-recordation of older instruments).
For non-exempt instruments, establishes a tax rate: $0.50 for value $500 or less; $0.50 per $500 (or fraction) for value over $500, with adjustments for mortgages or vendor's lien amounts and per-tenant-in-common rules.
Requires proof of actual value/price via a Department of Revenue form, with attestation but no additional documentation required.
Judge of probate calculates tax due based on actual price/value; if proof is absent, tax uses the latest assessment and penalties apply; penalties include $100 or 25% of the tax, whichever is greater.
Multi-county property handling allows the Department of Revenue to determine per-county value, with a deposit option to expedite filing and refunds for any excess, and ministerial certification of values.
Tax distribution provides two-thirds to the State Treasury and one-third to counties; probate commissions are 2.5% of collected tax; exemptions and exemptions conditions are detailed for special cases.
Effective date is the first day of the third month after gubernatorial 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