SB197 Alabama 2013 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2013

Title

Real Property, tax sales delinquent ad valorem tax, excess amounts paid to a person or entity who has redeemed the property, Sec. 40-10-28 am'd.

Summary

SB197 would restrict excess funds from tax sales to the redeemer of the property, and require those funds to be held in escrow for three years with unclaimed funds going to the county general fund over time.

What This Bill Does

If passed, the excess funds from a tax sale would only be paid to the person or entity that redeemed the property. The excess would be held in an escrow account in the county treasury for three years while a proper claim is made. If no proper request is made within three years, the funds go to the county general fund. Within 10 years after being moved to the general fund, the county can pay the rightful owner or their representative if they can prove proper redemption; if not, the funds become county property.

Who It Affects

• Redeemers of tax sale property: eligible to receive the excess funds after properly redeeming the property.
• Delinquent property owners (and their heirs/representatives) who did not redeem: would not be eligible to receive the excess funds under this bill.
• County government (county treasurer and county commissioners): responsible for holding funds in escrow, processing claims, and ultimately transferring unclaimed funds to the county general fund or paying rightful claimants after redemption proof.
• Potential claimants who have redeemed property and can prove proper redemption within the 10-year window: may receive payment of the excess funds if approved by the county commission.

Key Provisions

• Excess funds from tax sale are payable only to the person or entity that redeemed the property (or their rightful representative) rather than to the delinquent owner.
• The excess must be held in escrow in the county treasury for three years while proper application for payment is made.
• If no proper request is made during the three-year escrow, the excess funds are deposited to the county general fund.
• Within 10 years after the funds are placed in the general fund, the county commission may order payment to the rightful owner or their representative if they have properly redeemed the property; if not paid within that time, the funds become the property of the county.
• The act becomes effective on the first day of the third month after passage and 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