HB145 Alabama 2017 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2017

Title

Real property, tax sales, excess funds, redemption payments, application to all funds held by a county, retroactive effect regardless of when tax sale occurred, Sec. 40-10-28 am'd.

Summary

HB145 clarifies and retroactively applies how counties handle excess tax-sale funds, including calculation, distribution, and retention.

What This Bill Does

It sets a uniform process for excess funds from tax sales to apply to all sales, no matter when they occurred. Excess funds must be held in a separate county treasury account for up to three years for potential redemption, with unclaimed funds going to the county general fund after that period. The bill creates a voucher-based option for redeeming parties and specifies how and when payments are made, including a later window (3–10 years) for paid redemptions with required documentation, and it ratifies prior good-faith actions under older law.

Who It Affects

• Redeemers (people or entities who have redeemed the property or hold the right to excess funds, including owners or purchasers and their successors) who may receive funds or use vouchers under the new rules.
• Counties and county officials (county commissions, treasuries, Department of Revenue, and judges of probate) who implement, manage, and disburse excess funds and oversee redemption procedures.

Key Provisions

• The excess from a tax sale, after costs, goes to the redeemer if properly redeemed within three years; funds are held separately in the county treasury during this period, and unclaimed funds plus interest go to the county general fund after three years.
• The Department of Revenue can issue rules enabling a voucher system to pay the excess amount to the redeeming party, who can use the voucher to complete redemption.
• If more than three years but within 10 years after the tax sale, excess funds are paid to the redeeming party upon proof of redemption by court order, or to the landowner via negotiated redemption with specific documentation (deeds and related records).
• Proof of redemption triggers payment of the excess funds, with the county retaining any interest earned.
• If no valid redemption proof is received within 10 years, the excess funds and interest become the property of the county.
• The act applies to all excess funds regardless of when the tax sale occurred, and it ratifies, validates, and affirms good-faith actions taken under prior versions of the law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties