SB230 Alabama 2014 Session

Summary

Primary Sponsor

Cam Ward

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

SB230 changes how excess funds from tax sales are paid by allowing redeeming parties or purchasers with negotiated redemptions to receive those funds under specific proof and timing rules.

What This Bill Does

The bill lets a person or entity who has redeemed property or reached a negotiated redemption or purchase with the tax sale purchaser (or successor) claim the excess funds, provided there is written proof. It codifies timeframes for when excess funds must be paid (and when they can instead go to the county) and introduces a voucher option for redeeming parties who paid other redemption costs. After redemption, excess funds may be remitted to the purchaser or the redeeming party, depending on the situation.

Who It Affects

• Redeemers and purchasers (and their successors) who have a negotiated redemption or purchase agreement and can provide written proof or deed, who may be entitled to receive excess funds from a tax sale.
• County governments (county commissions) and state officials (Department of Revenue, judge of probate) responsible for handling excess funds, issuing vouchers, and remitting payments, with funds potentially staying in or transferring from county accounts.

Key Provisions

• Amends Section 40-10-28 to allow excess funds from a tax sale to be paid to a redeemer, purchaser, or their successor when there is a negotiated redemption or purchase evidenced by written agreement or deed.
• Outlines timeframes: excess funds must be requested within three years after the sale if redeeming under existing redemption laws; if not claimed, funds may go to the county; within 10 years after the sale, funds must be paid if proof shows proper redemption or negotiated redemption/purchase, otherwise they become county property.
• Creates a voucher system allowing a redeemer who paid all other redemption costs to receive a voucher usable through the judge of probate for redemption completion.
• Specifies that after redemption, excess funds may be remitted to the tax sale purchaser or successor, or to the redeeming party in negotiated redemption scenarios where the redemption or purchase price has been paid.
• Effective date: 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