HB349 Alabama 2014 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Mike Hill
Republican
Session: Regular Session 2014
Title: Tax sale property, redemption, payment of excess to persons negotiating redemption or purchasing at a tax sale, further provided for, Sec. 40-10-28 am'd.
Summary: HB349 clarifies who can receive excess funds from tax sales and sets rules for proving redemption, timelines, and how counties and the state administer these funds.
What This Bill Does
The bill amends the tax sale law to allow the excess funds from a tax sale to be paid to the person or entity that redeemed the property or purchased it from the sale purchaser (or their successors) if they provide proof of redemption or purchase. It creates a three-year window to request payment, with funds held in a separate account and counties keeping any interest; if unclaimed, the funds go to the county general fund. Within ten years after the sale, the county must pay the excess funds to the redeemed party if proper proof is provided; otherwise, the funds become county property. For tax sales after August 1, 2013, the excess funds may go to either (a) the redeeming party with appropriate court-proof redemption, or (b) the landowner at the time of sale or a later owner who demonstrates negotiated redemption, with specific documentary proof required. The bill also allows a voucher system where the Department of Revenue can issue a voucher for the excess bid amount to a redeeming party who paid all redemption costs, usable in the redemption process, and requires rules and forms for issuing these vouchers.

Who It Affects
Redeemers or purchasers at tax sale (and their successors) who seek payment of the excess funds by providing the required proof of redemption or purchase within the specified timeframes.
Counties and the Department of Revenue, which must hold, administer, and disburse the excess funds, issue vouchers, retain interest, and enforce the documentation and timing requirements.

Key Provisions
Excess funds from tax sales can be paid to the redeemer or purchaser (or successor) upon proof of redemption or negotiated purchase, provided within three years after the tax sale; funds are held separately and counties may earn interest; unclaimed funds go to the county general fund after three years.
Within ten years after the sale, the county must pay the excess funds upon proof of proper redemption; if not paid within that period, the funds become the property of the county; after redemption, funds may be remitted to the tax sale purchaser per existing procedures.
For tax sales after August 1, 2013, excess funds may be paid to (a) redeeming parties with proper court-ordered redemption, or (b) landowners who have negotiated redemption with the purchaser or successor, with specified documentary proofs required (deeds and chain of ownership).
A voucher system may be used: the Department of Revenue can authorize a voucher equal to the excess bid for redeeming parties who paid all redemption costs, and vouchers can be used in the redemption process with rules and forms issued.

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