SB47 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Trip Pittman
Republican
Session: Regular Session 2018
Title: Revenue Dept., sale of state land, employment of auction company, Sec. 40-10-134 am'd.
Summary: SB 47 changes how Alabama sells tax-delinquent lands after five years by requiring public auctions run by a qualified auction company, with certain municipalities exempt and new rules for notices, fees, and how proceeds are shared.
What This Bill Does
Starting January 1, 2020, lands sold for taxes and not redeemed after five years must be sold at public auction through a qualified auction company (replacing private sale for those lands, except for exempt areas). The Land Commissioner must contract with an auction company by December 31, 2019 to conduct these auctions and must publish at least 30 days of notice on the Revenue Department website before the auction. Tax lien holders have the option to purchase the land at the best price offered by any private purchaser, and the auction process includes a contingency fee for the auction company (up to 15% of the winning bid) with expenses borne by the company and added as a premium to the bid. Proceeds from the sales are distributed to the State General Fund, the county general fund, and the municipal fund when municipal millage is included; exemptions apply for municipalities with local land bank authorities and certain Class 2 or Class 4 municipalities without such authorities, and the act does not apply to lands in jurisdictions with expedited quiet title procedures.

Who It Affects
Property owners and tax lien holders on lands that were sold for taxes and not redeemed after five years; they will be notified and the land may be auctioned, with lien holders having the option to purchase at the best private-sale price.
State, county, and municipal governments that receive shares of auction proceeds (State General Fund, county funds, and municipal funds) and the auction company that conducts the auctions; municipalities with local land bank authorities and certain Class 2/Class 4 municipalities without land banks are exempt from the auction process.

Key Provisions
Amends Section 40-10-134 to move from private sale to public auction for lands not redeemed after five years, starting in 2020, with certain exemptions.
Exempts lands located in municipalities that have formed local land bank authorities from the auction process, and exempts Class 2 or Class 4 municipalities without local land bank authorities from the auction process.
By December 31, 2019, requires the Land Commissioner to contract with a qualified auction company to auction the state's tax lien interest on eligible lands not redeemed within five years or without an active price quote.
Requires 30-day publication notice on the Department of Revenue website prior to auction; allows updates to the list without restarting the publication period.
Auction company must advertise and disclose that bidders do not receive clear title and are bidding on the state's tax lien interests, which may have additional liens.
Provides a contingency fee for the auction company up to 15% of the total bid, with expenses borne by the company and deducted before net proceeds; the fee is added as a premium to the bid.
Outlines how sale proceeds are distributed: three equal shares to State General Fund, county general fund, and municipal fund when municipal millage is included; two equal shares to State General Fund and county general fund when municipal millage is not included.
The Revenue Department will promulgate rules to implement the section under the Alabama Administrative Procedure Act.
Not applicable to lands in jurisdictions with an expedited quiet title procedure and not applied to certain exempt municipalities as described.

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