SB53 Alabama 2015 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2015

Title

Redemption of land sold for taxes, interest rate reduced only on tax amount due on date of sale, Sec. 40-10-122 am'd.

Summary

SB53 changes how land redeemed from tax sales is calculated by limiting interest, requiring a deposit with the probate judge, and applying retroactively to 2008.

What This Bill Does

It amends the redemption process for land sold to non-state buyers by requiring the redeemer to deposit the sale amount with the county judge of probate and limiting interest to the tax amount due on the sale date. It reduces interest on unpaid taxes, insurance premiums, permanent improvements, and preservation improvements. It also creates a process to value improvements through referees and an umpire, includes online payment options, and applies retroactively to October 1, 2008 with no refunds of past interest or excess bid amounts.

Who It Affects

• Redemption seekers (people wanting to redeem land sold at a tax sale): must deposit the sale amount with the probate judge and face interest only on the tax amount due on the sale date, plus any required taxes and costs.
• Tax purchasers and transferees (buyers at the tax sale): may be paid for insurance premiums and the value of permanent and preservation improvements, and must provide value statements and participate in the improvement valuation process.
• Redeemers of properties with a residential structure: in addition to other amounts, must pay the purchaser's insurance premiums and the value of preservation improvements for the structure.
• County probate judges and tax officials: handle deposits, record-keeping, and online filing/payment processes as part of the redemption procedure.

Key Provisions

• Redemption deposits: the redeemer must deposit with the county probate judge the amount of the sale, with interest at 12% per year on the sale amount, and interest only on the tax portion due on the date of sale for excess bid up to 15% of market value.
• Tax payment required: if any taxes on the land are due and unpaid, the redeemer must pay those taxes to the tax collector before redeeming the land.
• Costs and online option: redeeming party pays all costs and a $0.50 fee to the probate judge; redemption payments may be made online.
• Insurance and improvements: the purchaser may receive interest on insurance premiums and on the value of permanent improvements at 12% per year.
• Residential property provision: for lands containing a residential structure, the redeemer must also pay the purchaser the insurance premiums and the value of preservation improvements with interest.
• Improvement valuation process: any claimed values for permanent or preservation improvements can be disputed via a process using statements, voluntary referee appointments by each party, and, if needed, an umpire and final award.
• Retroactive effect: the act applies retroactively to October 1, 2008, but no refunds of interest or excess bid payments are required as a result.

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