SB264 Alabama 2017 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Trip Pittman
Republican
Session: Regular Session 2017
Title: Revenue Dept., sale of state land, employment of auction company, Sec. 40-10-134 am'd.
Summary: SB264 would require public auctions through a national auction company for tax-sold lands not redeemed after five years, with exemptions for certain municipalities and local land banks, and it sets auction rules plus how proceeds are shared.
What This Bill Does
Starting January 1, 2019, most lands sold for taxes and not redeemed within five years must be sold at a public auction to the highest bidder through a nationally recognized auction company. The Land Commissioner must contract with that company to conduct the sale, with the company paying its own expenses and earning a contingency fee. Notice to owners and lien holders must be published on the Revenue Department's website at least 30 days before the auction, and bidders are told they are buying tax liens (not clear title) with other liens possible; proceeds are shared among state, county, and municipality (three equal shares) if municipal millage applies, or between state and county if not. Exemptions apply to lands in municipalities with local land bank authorities and to Class 2 or Class 4 municipalities that have not formed local land bank authorities by 2017, and the act does not apply to lands in jurisdictions with expedited quiet title procedures.

Who It Affects
Property owners and tax lien holders: owners/holders will be notified of upcoming public auctions, may be subject to the sale if the land is not redeemed, and tax lien holders may have the option to purchase at the best private sale price; buyers at auction purchase tax liens, not clear title.
Municipalities and local land banks (and certain Class 2/4 municipalities): lands in municipalities with local land bank authorities or in Class 2/4 municipalities that have not formed such authorities by 2017 are exempt from the public auction process, affecting how those lands are sold.

Key Provisions
Starting January 1, 2019, most lands not redeemed within five years must be sold at public auction to the highest bidder through a nationally recognized auction company.
The Land Commissioner must contract with a nationally recognized auction company to conduct the sale, with the company bearing all expenses and earning a contingency fee.
Notice to owners and lien holders must be published on the Department of Revenue's website at least 30 days before the auction, and bidders are informed they are bidding on tax liens (not clear title); proceeds are distributed as three equal shares to state, county, and municipality if municipal millage is included, otherwise two equal shares to state and county.
Exemptions apply to lands located in municipalities that have formed local land bank authorities and to Class 2 or Class 4 municipalities that have not formed local land bank authorities by January 1, 2017; the act does not apply to lands in jurisdictions with expedited quiet title procedures.

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