HB47 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Steve ClouseRepresentative
Republican
Session: Regular Session 2013
Title: Property, tax sales, distrib. of excess funds to owner of property, includes holder of records, Sec. 40-10-28 am'd.
Summary: HB47 changes how excess funds from tax sales are distributed by limiting payment to redeemed property owners or their representatives, placing funds in escrow for three years, and directing unclaimed money to the county general fund, with a voucher option to complete redemption.
What This Bill Does
The bill says only the person or entity who has redeemed the property may receive the excess funds from a tax sale. It requires the excess to be held in an escrow account in the county treasury for three years while redemption is possible. If no valid claim is made within three years, the funds are placed into the county general fund; within ten years after that transfer, the county commission may order payment of the excess to the rightful owner who redeemed, but if not ordered, the funds become the county's property. It creates a voucher system, via the Department of Revenue, to allow redeeming parties to complete redemption, and provides forms to implement the process.

Who It Affects
Redeemers (individuals or entities that have redeemed property sold at a tax sale) would be the only recipients of the excess funds and must complete redemption to receive them; if redemption does not occur within the three-year escrow period, the funds are handled by the county and may be paid to the rightful redeemer only within the time limits described.
County and state agencies involved in tax sales (county commissions, the county treasurer, and the Department of Revenue) would manage the escrow, transfer unclaimed funds to the county general fund, and implement the voucher system for redemption.

Key Provisions
Excess funds from a tax sale may only be paid to the redeemer or their agent/representative (the person who has redeemed the property).
Excess funds must be placed in escrow in the county treasury for three years while redemption is possible.
If unclaimed after three years, the funds go to the county general fund; within ten years after the funds are placed in the general fund, the county commission may order payment to the rightful owner who redeemed; if not ordered, the funds become county property.
After redemption, excess funds (including interest) may be remitted to the tax sale purchaser under the established procedures.
The Department of Revenue will issue vouchers to redeeming parties equal to the excess bid to complete redemption, and forms will be provided for the voucher process.

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