SB128 Alabama 2022 Session

Summary

Primary Sponsor

Jack W. WilliamsSenator

Republican

Co-Sponsor

David Sessions

Session

Regular Session 2022

Title

Revenue, local tax collecting officials, authorized to conduct on-line public auctions for collection of delinquent property taxes, Sec. 40-10-199.1 added; Secs. 40-10-180 to 40-10-188, inclusive, 40-10-191, 40-10-193, 40-10-194, 40-10-197, 40-10-199 am'd.

Summary

SB128 would let Alabama counties run online public auctions to collect delinquent property taxes, set procedures for online tax lien auctions, and add a new foreclosure path after five years of unsold liens to transfer property to public entities or the state.

What This Bill Does

Allows county tax collecting officials to conduct public tax lien auctions online (in place of or in addition to in-person auctions) and requires notifications, bid rules, and record-keeping for online auctions. Establishes how purchase prices are determined, how liens are issued as certificates, and how redemption and foreclosure work, including fees and notification requirements. Creates a new pathway (Section 40-10-199.1) to foreclose and convey unsold liens after five years to municipalities, counties for public use, or the state, with notice, title searches, and cost reimbursement provisions.

Who It Affects

• Property owners with delinquent taxes: their tax liens may be auctioned online, they must receive notice, and they have redemption rights; if liens remain unsold for five years, a new foreclosure pathway could transfer the property to public use or the state.
• County tax collecting officials, municipalities, the county, and the state: counties gain authority to conduct online auctions, maintain auction records, publish their method choice, and may pursue foreclosure and conveyance of properties to public entities under new procedures.

Key Provisions

• Counties may authorize online tax lien auctions and must publish their chosen method (tax lien sale or tax deed sale) on the official website or in a newspaper by Oct 1 each year for all real property in the county.
• Online auction procedures include 30-day notices to delinquent taxpayers via mail, newspaper ads, online notices, or courthouse postings; bids start with a 12% minimum and may be lowered, with tie-breaking by lottery or a random generator for online auctions.
• Purchase price for tax liens includes delinquent taxes, interest, penalties, fees, and costs; there are specific fees ($5 per certificate, $20 origination, $45 admin) and redemption requires payment of amounts listed on the tax lien certificate plus interest.
• A tax lien certificate can be transferred or assigned; holders may record and enforce security interests; notices of redemption and records must be maintained.
• If a tax lien remains unsold after five years, the new Section 40-10-199.1 allows foreclosure to acquire property for municipal, county, or state use (or convey to the state if not suitable for public use), with required title searches, notices to interested parties, and costs reimbursed by the state or otherwise.
• Private sale of unsold liens is allowed after 45 days following the auction at a minimum price equal to the total due, with interest not to exceed 12% per year.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation