SB103 Alabama 2020 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2020

Title

Taxation, recordation tax, mortgages, deeds of trust, etc., recording fee and the distribution thereof further provided, Sec. 40-22-2 am'd.

Summary

SB 103 would raise the mortgage recording fee and change how the mortgage record tax is distributed to fund the Alabama Housing Trust Fund, with some technical updates.

What This Bill Does

The bill increases the fee charged to record mortgages, deeds of trust, and similar security instruments. It also changes the rate calculation and how the mortgage record tax is allocated to provide dedicated revenue for the Alabama Housing Trust Fund, while outlining allocations to county treasuries, the State General Fund, and probate judges. In addition, it includes nonsubstantive technical revisions to update the code language and adds new provisions related to reporting, bonding, and enforcement; the act would take effect on October 1, 2021.

Who It Affects

• Homebuyers and property owners who record mortgages or related security instruments, who would face higher recording fees and mortgage taxes.
• Banks, savings and loan associations, mortgage companies, title/recording offices, probate judges, county treasuries, and the Alabama Housing Trust Fund administrators, who would implement, collect, and distribute the new tax and fees, including new reporting and audit requirements.

Key Provisions

• Section 40-22-2 is amended to increase the recording fee for mortgages, deeds of trust, contracts of conditional sale, and similar instruments, and to adjust the rate calculation and the timing of tax payment before recording.
• The mortgage record tax distribution is revised to provide a dedicated revenue for the Alabama Housing Trust Fund, including specific allocations to the Housing Fund, county treasuries, the State General Fund, and compensation to probate judges; the bill also adds reporting requirements, potential bonding for certain instrument owners, audits by the Banking Department, and penalties for under-reporting.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Mortgages