SB95 Alabama 2017 Session

Summary

Primary Sponsor

Trip Pittman

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

SB95 updates Alabama law to clearly govern how counties handle all excess funds from real estate tax sales, regardless of when the sale happened, and it ratifies past good-faith actions.

What This Bill Does

It clarifies the process for calculating, distributing, and retaining excess funds from a real estate tax sale. The rules apply to all excess funds held by counties, regardless of when the sale occurred, and they include retroactive application. Excess funds are held in a separate county account for up to three years; if no proper claim is made, they go to the county general fund; for claims made between three and ten years after the sale, funds may be paid to redeeming parties or landowners with the required proof; after ten years, any remaining funds become the county's property. The Department of Revenue can issue redemption vouchers to help complete redemptions, and the act ratifies past good-faith actions taken under prior law.

Who It Affects

• Redeeming parties and landowners: individuals or entities who have redeemed or may redeem property, or who are entitled to redemption under the law, and who may receive excess funds according to timelines and required documentation.
• County governments (county commissions and treasuries): responsible for calculating, holding, and distributing excess funds, managing refunds, and following the new retroactive rules; may eventually keep unclaimed funds as county property.

Key Provisions

• Amends Section 40-10-28 to clarify calculation, distribution, and retention of all excess funds from real estate tax sales, applying to funds held by counties regardless of when the sale occurred.
• Excess funds must be held in a separate county treasury account for up to three years after the sale; if no valid claim is made, they (and any interest) go to the county general fund.
• Within three to ten years after the sale, excess funds may be paid to redeeming parties or landowners upon proof of redemption or negotiated redemption, with specified documentation (deeds and related records).
• After ten years, unclaimed excess funds become the property of the county.
• The Department of Revenue may issue redemption vouchers to help complete the redemption process, with forms and procedures provided.
• The act retroactively ratifies prior good-faith actions and takes effect immediately upon passage.

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