HB534 Alabama 2019 Session

Summary

Primary Sponsor

Steve McMillan

Republican

Session

Regular Session 2019

Title

Taxation, sale of land for unpaid tax delinquent after January 1, 2020, redemption, Secs. 40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, 40-10-122 am'd.

Summary

HB 534 updates interest in tax-delinquent land cases and expands redemption procedures for land sold to the state or to private buyers, starting January 1, 2020.

What This Bill Does

It sets the interest on amounts awarded in post-2020 tax-delinquent land actions at eight percent, and ties redemption interest to rates specified in the redemption sections. It broadens and details the redemption process for lands redeemed from the state and from private purchasers, including how much must be deposited, how taxes and costs are calculated, and how improvements and insurance costs are handled. It introduces procedures for valuing improvements and costs, allows online redemption, and provides dispute resolution options (protests, referees, mediation/arbitration) with probate court oversight.

Who It Affects

• Redeemers (people or entities seeking to redeem land sold for delinquent taxes) who must deposit the sale price, taxes due, interest, costs, and any approved improvement or insurance costs, and who must follow the valuation and dispute-resolution procedures.
• Purchasers or their transferees (the former buyers at tax sales, including state or private purchasers) whose costs for improvements and insurance may be recoverable and who must provide notices, statements of costs, and respond to requests related to redemption.

Key Provisions

• In post-2020 actions, eight percent interest is set on amounts awarded under sections related to tax-delinquent lands (sections 40-10-75, 40-10-76, 40-10-77, 40-10-83).
• Redemption from state-held lands (40-10-121) requires redemption funds to include the sale price, all post-sale taxes with interest, and costs, with interest rates linked to the rates in the redemption sections (40-10-121(a) or 40-10-122(a)).
• Redemption from private-party lands (40-10-122) requires deposit of the sale price plus eight percent interest, plus any taxes due, and all costs, with additional amounts for insurance premiums and improvements in certain contexts (urban renewal areas and residential properties).
• A detailed process governs how improvements and insurance costs are valued (permanent and preservation improvements), including notices, written demands, referee/arbitration procedures, and a probate court redemptive order.
• Online redemption is permitted, with a small probate judge fee for services, and the option to mediate or arbitrate disputes between the redeeming party and the purchaser.
• If redemption occurs, the court can enforce the redemption and issue liens or divest title from the tax deed holder; actions for redemption may involve protests, board of equalization review, and potential appeals of probate court orders.

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