HB468 Alabama 2018 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2018

Title

Taxation, sale of land for unpaid tax, redeem property by paying interest only on tax, Secs. 40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, 40-10-122 am'd.

Summary

HB 468 would change how interest is charged when redeeming land sold for unpaid Alabama taxes, tying interest to taxes due at the time of default and capping it at 8%.

What This Bill Does

If property is redeemed, the redeemer would pay the amount the land was sold for plus taxes due, but interest would apply only to the taxes due at the time of default and would be capped at 8% per year. The bill lowers the interest rate on redemption-related amounts to 8% for actions related to taxes delinquent on or after January 1, 2018, and it becomes effective October 1, 2019. It also allows redemption paperwork to be completed online and includes updated rules for evaluating improvements in urban renewal areas.

Who It Affects

• Redeemers (landowners or their agents) seeking to redeem property sold for unpaid taxes, who would face interest only on taxes due at the time of default and potentially lower overall interest costs.
• Purchasers of tax deeds or their heirs/assignees, whose claims for payments, liens, and judgments would be calculated with the eight percent cap on redemption-related amounts and may involve new procedures for valuing improvements and other charges.

Key Provisions

• Sets eight percent annual interest on redemption-related amounts for actions related to taxes delinquent on or after January 1, 2018, replacing higher rates.
• Redemption requires paying the land’s sale price plus taxes due on the land since the sale, with interest only on the taxes due at the time of default, at up to 8% per year.
• Effective October 1, 2019 for actions related to taxes delinquent on or after January 1, 2018.
• Allows redemption paperwork to be completed online.
• In urban renewal or urban redevelopment areas, requires payment of insurance premiums and the value of permanent improvements (and preservation improvements for residential properties) with interest, using a specified valuation process.
• Judgments and liens arising from redemption would reflect the updated interest rate and statuses, including the possibility of liens on the land and related enforcement.

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

Subjects

Taxation