HB550 Alabama 2019 Session

Summary

Primary Sponsor

Debbie Wood

Republican

Session

Regular Session 2019

Title

Real estate sold for payment of taxes, recovery actions by owner and actions for possession by tax purchaser, further provided for, tax lien by tax purchaser, authorized, Act 2018-494, 2018 Reg. Sess., repealed; Secs. 40-10-82, 40-10-120 am'd.

Summary

HB 550 clarifies time limits for recovery or possession after a tax sale, lets tax purchasers keep a tax lien until paid, keeps a 12% redemption interest rate after 2020, and repeals an earlier 8% cap on redemption interest.

What This Bill Does

It clarifies that the three-year limit for recovering real estate after a tax sale applies to owners not in possession at the time the recovery action would start. There is no time limit for a tax purchaser to bring an action to possess real estate if the owner has not recovered the property under existing law. The tax purchaser may retain a tax lien on the property for all taxes, insurance, improvements, attorneys' fees, costs, and interest until the lien is satisfied. The bill repeals the 2018 law that set an 8% cap on redemption interest and keeps a 12% redemption interest rate after January 1, 2020.

Who It Affects

• Owners of real estate sold for taxes, with different recovery timelines depending on whether they are in possession after the sale.
• Tax purchasers who bought property at a tax sale, who gain the ability to pursue possession without a time limit in certain cases and who can maintain a tax lien until paid.

Key Provisions

• Defines a three-year recovery window for owners not in possession to recover real estate sold for taxes, with disability exceptions.
• Provides no time limit for tax purchasers to maintain an action for possession of real estate not recovered by the owner.
• Allows the tax purchaser to retain a tax lien on the property for all taxes, insurance, improvements, attorneys' fees, costs, and interest until paid.
• Keeps the redemption interest rate at 12% after January 1, 2020 (instead of 8%).
• Repeals Act 2018-494, which had established the eight percent redemption interest cap.

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