HB484 Alabama 2017 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

Regular Session 2017

Title

Revenue Dept., sale of state land, employment of auction company, Sec. 40-10-134 am'd.

Summary

HB484 would require lands not redeemed after five years to be sold at public auction through a nationally recognized auction company and would govern sale of the state's tax lien interests, with proceeds shared to state and local governments.

What This Bill Does

Replaces the private sale option for lands sold for taxes that have not been redeemed after five years, requiring the Land Commissioner to conduct public auctions through a nationally recognized auction company. Creates a process to sell the state's tax lien interests on such lands at public auction, including required notices, advertising, and a contingency-fee arrangement for the auction company with expenses paid by the company. Requires publication on the Department of Revenue website at least 30 days before auction and allows updates to the list of properties without restarting the publication period; includes a disclaimer that bidders purchase tax lien interests, not clear title. Defines how auction proceeds are distributed: if municipal millages apply, funds are split three ways (state, county, municipality); if not, funds are split two ways (state and county).

Who It Affects

• Property owners and holders of tax liens on lands that have been sold for nonpayment of taxes and not redeemed within five years; they will receive notices about public auctions, may be affected by the shift to auction sale, and tax lien holders have a defined purchase option and protections during auctions.
• State and local governments (state, counties, and municipalities) that will receive a share of the funds from these tax lien sales and will oversee or benefit financially from the revenue distribution.

Key Provisions

• Amends Section 40-10-134 to move from private sale (after five years) toward public auction for lands not redeemed, with public auction required starting January 1, 2018.
• Section 40-10-134(c)-(g) requires contracting with a nationally recognized auction company to auction the state's tax lien interests on eligible lands, with a defined process and contingency-fee arrangement.
• Section 40-10-134(d)-(e) mandates 30-day publication on the Department of Revenue website before auctions and requires notices to owners or interests, including a disclaimer that bidders are purchasing tax liens, not clear title.
• Section 40-10-134(f) outlines how revenue from these sales is distributed among state, county, and municipality (three equal shares if municipal millages exist; otherwise two equal shares to state and county).
• Section 40-10-134(g) authorizes the Department of Revenue to issue rules to implement the section, following the Alabama Administrative Procedure Act.
• Section 2 makes the act effective immediately upon the Governor's 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

Revenue Department