HB273 Alabama 2018 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2018

Title

Mortgages, fee increase for recording of mortgages, deeds of trust, distribution of proceeds to Alabama Housing Trust Fund, Sec. 40-22-2 am'd.

Summary

HB 273 would raise the recording fee for mortgages and similar instruments and dedicate a portion of the Mortgage Record Tax to funding the Alabama Housing Trust Fund.

What This Bill Does

The bill increases the fee charged to record mortgages, deeds of trust, contracts of conditional sale, and other related security documents. It changes the Mortgage Record Tax structure and directs revenue to four recipients: 5% to probate judges, 25% to the Alabama Housing Trust Fund, 33% to county treasuries, and 37% to the State Treasury. If a property is in multiple counties, the tax is distributed to those counties based on the property's value in each county. It also adds reporting, bonding, and audit requirements for banks and other financial institutions and establishes penalties for underreporting.

Who It Affects

• Mortgage lenders, banks, title and recording offices, and other financial institutions would face higher recording taxes and new reporting obligations.
• The Alabama Housing Trust Fund, county treasuries, probate judges, and the State Treasury would receive a dedicated and potentially larger share of Mortgage Record Tax revenues, affecting public funding and local budgeting.

Key Provisions

• Increase the recording privilege tax for instruments securing debt on real or personal property (mortgages, deeds of trust, etc.).
• Modify the rate and distribution of the Mortgage Record Tax to provide dedicated revenue for the Alabama Housing Trust Fund, with specific shares: 5% to probate judges, 25% to the Housing Trust Fund, 33% to county treasuries, and 37% to the State Treasury.
• If a property described in an instrument is located in more than one county, require proportional distribution of taxes to each affected county based on property value.
• Introduce reporting and bonding requirements for certain financial institutions and authorize audits by the State Banking Department; include penalties for willful underreporting.
• Take effect on the first day of the third month after the bill passes and becomes 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

Mortgages