HB309 Alabama 2013 Session

Summary

Primary Sponsor

Mike Hill

Republican

Co-Sponsors

April WeaverMac McCutcheon

Session

Regular Session 2013

Title

Tax sales, interest on redemptions, rate charged on money judgments, Secs. 40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, 40-10-122 am'd.

Summary

HB309 would switch the interest rate in tax sale defects and redemptions from 12% to the rate charged on money judgments (currently 7.5%).

What This Bill Does

The bill amends six sections (40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, and 40-10-122) to use the money judgments interest rate instead of 12% for amounts in tax sale defect and redemption cases. That rate is the rate allowed on money judgments under Section 8-8-10, which is currently 7.5% and can change over time. As a result, interest on sums such as purchase price, taxes, insurance, improvements, and attorney fees in these cases would be calculated at the money judgments rate. The bill preserves the existing redemption and lien procedures and related time limits, with the new rate applying to the interest calculations, and it becomes effective a few months after passage and governor approval.

Who It Affects

• Purchasers at tax sales and their assignees, who would have interest calculated at the money judgments rate rather than 12% in cases of defects or redemption.
• Property owners, heirs, mortgagees, defendants, and redemption applicants in tax sale disputes, who would see changes in interest amounts and related recovery or liability when defending or redeeming property.

Key Provisions

• Interest rate for tax sale defect and redemption actions changed to the money judgments rate (as set by Section 8-8-10) instead of 12%.
• The change applies to Sections 40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, and 40-10-122 of the Alabama Code.
• The rate is the money judgments rate, currently 7.5% but subject to change under 8-8-10, and is subject to the limitations in 40-10-122(a).
• Interest would apply to amounts such as purchase money, taxes, insurance premiums, improvements, and attorney fees in the specified tax sale matters.
• Redemption procedures, liens, and related court processes remain intact, with the interest calculations adjusted to the new rate.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

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

Subjects

Taxation