SB114 Alabama 2018 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2018

Title

Taxation, sale of land for unpaid tax interest on tax, abolished, Sec. 40-10-121 am'd.

Summary

SB 114 would change how interest is charged when redeeming land sold for unpaid Alabama taxes, limiting interest on back taxes to the amount due at the time of default.

What This Bill Does

The bill amends the redemption calculation so that, while the original sale amount still accrues 12% interest, the interest on back taxes would be charged only on the portion that was due at the time of default, rather than on all taxes due since the sale. In other words, redemptions would no longer incur 12% interest on every tax year after the sale, only on the taxes due at the moment of default. The redemption amount would still include the sale price, taxes due, and related costs, but the interest on those taxes is limited as described. The changes apply to tax-delinquent actions beginning January 1, 2017, with the act taking effect October 1, 2016.

Who It Affects

• Property owners or other parties seeking to redeem land sold for unpaid taxes, who would face lower interest charges on back taxes during redemption.
• County probate judges, tax assessors, boards of equalization, and municipal tax authorities who administer the redemption process and calculate the amounts due.

Key Provisions

• Amends Section 40-10-121 to change how interest is calculated on redemption: interest on back taxes is limited to the taxes due at the time of default, while the sale amount continues to accrue 12% interest.
• Redemption payments must include the sale amount, taxes due, and costs, with interest calculated as described above.
• Effective date: applies to taxes delinquent on or after January 1, 2017; the act becomes effective October 1, 2016.
• The bill preserves existing procedures for assessment values, protests, and related aspects of the redemption process to the extent they are not altered by the change in interest calculation.

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