SB257 Alabama 2018 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2018

Title

Taxation, sale of land for unpaid tax delinquent after January 1, 2018, redemption, interest rate lowered Secs. 40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, 40-10-122 am'd.

Summary

SB 257 lowers the interest charged to redeem land sold for unpaid Alabama taxes to a maximum of 8% on the taxes due at the time of sale and updates redemption and related procedures.

What This Bill Does

The bill amends six code sections to cap the interest on redemption payments at 8% for taxes due at the time of default. It also clarifies how interest is calculated in various tax-sale actions, sets redemption deposit requirements (including taxes, costs, and, in some cases, municipal taxes and improvements), and outlines valuation procedures for improvements and insurance in urban renewal areas. The act becomes effective January 1, 2020 for actions related to delinquencies on or after that date.

Who It Affects

• Redeemers of land sold to the state for unpaid taxes, who would pay up to 8% interest on taxes due at sale and must follow the revised redemption procedures
• Purchasers of tax deeds or their successors/assignees, whose rights to recover possession or defend against tax-sale challenges are affected by the updated interest calculations and redemption rules

Key Provisions

• §40-10-75: For actions related to taxes delinquent on or after Jan 1, 2020, interest on amounts awarded shall be 8% per year; the section also preserves applicable provisions for actions before that date and related time limits
• §40-10-76: In post-2020 actions, interest on amounts awarded is 8%; for pre-2020 actions, the court determines taxes due at sale, interest from the sale date, and related amounts with an 8% rate, creating a lien for the awarded amount
• §40-10-77: In post-2020 actions, interest on amounts awarded is 8%; for pre-2020 actions, the court calculates taxes due at sale, interest, and related costs, with a lien issued for the judgment
• §40-10-83: In post-2020 actions, interest is 8% on awarded amounts; in pre-2020 actions, the court determines amounts paid by purchaser and by state, includes premiums and improvements in urban renewal areas, preservation improvements for residential structures, and related interest; judgment creates a lien
• §40-10-121: Redemption from lands sold to the state requires depositing with the probate judge the sale amount plus interest (8% per year) and the taxes due since sale, plus costs and fees; if municipal taxes apply, those must also be deposited
• §40-10-122: Redemption from lands sold to someone other than the state requires depositing the sale price plus interest (8% per year) and any taxes paid or due, plus costs; specifies handling of excess bid amounts, improvements, and insurance premiums, with online redemption allowed and valuation 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

Taxation