SB218 Alabama 2015 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2015

Title

Redemption of land sold for taxes, eliminate the requirement to pay interest on excess bid, Sec. 40-10-122 am'd.

Summary

SB218 would stop charging interest on the excess bid when redeeming land sold at a tax sale to a private party.

What This Bill Does

It amends the redemption rules for land sold to someone other than the state. It removes the requirement to pay interest on the excess bid during redemption. Redeemers would still owe interest on the base sale amount (and related amounts such as taxes due) at 12% per year, as well as costs and other specified charges. The process can be completed online, and the law continues to address the value of improvements and related payments before redemption.

Who It Affects

• Redeemers (people or entities seeking to redeem land sold at tax sales to private parties) would no longer pay interest specifically on the excess bid; they would still owe interest on the sale price and any unpaid taxes, plus costs and other charges.
• Private purchasers of tax-sold land and county probate/tax offices would see changes in how redemption amounts are calculated and processed, potentially reducing interest owed by the redeemer and altering administration of the redemption to include online payments and valuation procedures for improvements.

Key Provisions

• Amends Section 40-10-122 to modify redemption rules for land sold to parties other than the state.
• Eliminates the requirement to pay interest on the excess bid in redemption.
• Keeps 12% annual interest on the redemption deposit (sale price) and on other amounts such as unpaid taxes, insurance premiums, and the value of improvements, where applicable.
• Defines 'permanent improvements' and 'preservation improvements' and requires interest on their values; outlines procedures for valuing improvements via a system of statements, referees, and an umpire.
• Maintains costs and a $0.50 judge of probate service fee; allows online redemption payments.
• For residential property, requires additional payments related to insurance premiums and preservation improvements as applicable.
• Outlines the process and deadlines for disputing improvement values and appointing referees/umpires, with final awards by majority.
• Effective date: October 1, 2015.

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