HB341 Alabama 2016 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2016

Title

Mortgages, recording fee increased, distrib. to the Alabama Housing Trust Fund and the Alabama Homebuyer's Initiative, Sec. 40-22-2 am'd.

Summary

HB341 raises the mortgage recording fee and uses the extra money to fund Alabama's housing programs.

What This Bill Does

The bill increases the recording privilege tax charged when mortgages, deeds of trust, contracts of conditional sale, or similar instruments securing debt are recorded. The additional revenue from the higher fees would be distributed to multiple recipients: 3% to the probate judge for collection, 35% to the State Treasury, 23% to the Alabama Housing Trust Fund, 23% to the Alabama Homebuyer’s Initiative, and 16% to the county treasurer where the property is located. It also updates how the tax is calculated and collected, sets reporting and bonding requirements for certain entities, and imposes penalties for underreporting; the measure takes effect on the first day of the third month after passage.

Who It Affects

• Homebuyers and lenders (including banks and other mortgage holders) who record mortgages and related security instruments; they would pay higher recording fees under the bill.
• State and local government offices and housing programs (probate judges, State Treasury, county treasurers, Alabama Housing Trust Fund, and Alabama Homebuyer’s Initiative) that collect, receive, or administer the tax revenues and distributions.

Key Provisions

• Amends Section 40-22-2 to increase the mortgage record tax for recording mortgages, deeds of trust, contracts of conditional sale, or similar instruments securing indebtedness.
• Establishes a specific revenue distribution: 3% to the judge of probate, 35% to the State Treasury, 23% to the Alabama Housing Trust Fund, 23% to the Alabama Homebuyer’s Initiative, and 16% to the county treasurer where the property is located.
• Adds procedural and oversight elements for collection and reporting, including Department of Revenue participation, bonding for indebtedness to be incurred, and penalties for willful underreporting and noncompliance.
• Effective date: the act 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

Mortgages