SB350 Alabama 2016 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2016

Title

Taxation, sale of land for unpaid tax interest on tax, abolished, Sec. 40-10-121 am'd.

Summary

The bill changes how interest is calculated when redeeming land sold for unpaid Alabama taxes, by charging interest only on taxes due at the time of default.

What This Bill Does

It amends Section 40-10-121 so that redemption of land sold for unpaid taxes requires payment of the sale price and taxes, but interest on those taxes would be charged only for taxes due at the time of default (not on all taxes since the sale). If the land is in a municipality, the redeemer must also deposit the unpaid municipal taxes and the interest that would have accrued. The bill preserves the existing process for assessing land values and allowing protests through the board of equalization, and sets an effective date of October 1, 2016 for delinquencies after January 1, 2017.

Who It Affects

• Property owners or other parties seeking to redeem land sold for unpaid taxes, who would pay interest only on taxes due at the time of default (potentially lowering redemption costs).
• County probate judges, tax assessors, and municipal tax authorities involved in the redemption process, who would implement the revised interest rule and related municipal tax deposits.

Key Provisions

• Amends Section 40-10-121 to change how interest is calculated on redemption: interest on the sale price remains, but interest on taxes due is limited to the taxes due at the time of default.
• If the land is within a municipality, the redemptioner must deposit unpaid municipal taxes and the interest that would have accrued, to be treated the same as other taxes.
• The act becomes effective October 1, 2016, for tax delinquencies arising on or after January 1, 2017.

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