SB343 Alabama 2019 Session

Summary

Primary Sponsor

Tom Whatley

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 Sess., repealed; Secs. 40-10-82, 40-10-120 am'd.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

SB 343 clarifies time limits for recovering or taking possession after tax sales, preserves a 12% redemption interest, and lets tax purchasers keep a lien and pursue possession, repealing an earlier eight-percent rule.

What This Bill Does

It clarifies that the three-year recovery limit applies to owners not in possession after the tax sale, while owners who retain possession have no time limit to recover. It also states there is no time limit for a tax purchaser to bring an action to possess property that hasn’t been recovered. It authorizes the tax purchaser to keep a tax lien on the property for all taxes, insurance, improvements, attorneys' fees, costs, and interest until the lien is paid. It maintains the redemption interest rate at 12% after January 1, 2020 and repeals the prior eight-percent rule from Act 2018-494.

Who It Affects

• Owners not in possession of real estate after a tax sale: now have a three-year window to recover the property from when the purchaser can demand a deed (with disability-related extensions).
• Tax purchasers or potential buyers of tax-defaulted property: can pursue possession with no time limit if the owner did not recover, and can keep a lien covering taxes, insurance, improvements, fees, costs, and interest until paid.

Key Provisions

• Three-year recovery period applies to owners not in possession after a tax sale; owners who retain possession have no time limit to recover.
• There is no time limit for a tax purchaser to maintain an action for possession of unrecovered property.
• 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.
• Redemption interest rate remains 12% after January 1, 2020; Act 2018-494 (eight percent) is repealed.
• The act becomes effective on the first day of the third month after it passes and is approved.

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