SB6 Alabama 2023 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2023

Title

Relating to land bank authorities; to amend Sections 24-9-4, 24-9-6, 24-9-10, 40-1-3, 40-10-1, 40-10-18, 40-10-29, 40-10-120, 40-10-184, and to add Sections 29-4-11 and 29-4-12 to the Code of Alabama 1975; to provide for the creation of multijurisdictional local land bank authorities; further authorize the acquisition of tax delinquent property and tax liens by local land bank authorities; further provide for the exemption of land bank authority property from taxes and fees; provide for the allocation of a portion of the ad valorem taxes on property conveyed by a land bank authority to the authority; further provide for the conveyance of land bank authority property; and authorize the Governor to create a local land bank authority in the event of a state of emergency.

Summary

SB6 would expand and empower Alabama land banks to operate across jurisdictional lines, acquire and manage tax-delinquent property and liens, exempt their property from taxes, share local tax revenue, and convey property for floodplain management—plus give the Governor emergency creation authority for such banks.

What This Bill Does

It creates multijurisdictional local land bank authorities through intergovernmental agreements, and it broadens their powers to acquire tax-delinquent property and tax liens. It also sets tax exemptions for land bank property, allows revenue sharing of ad valorem taxes from land bank property, and enables conveyance of land bank property for floodplain management and stormwater work. Additionally, it allows the Governor to establish a local land bank by executive order after a state of emergency and outlines how such an emergency bank can be converted or dissolved; it also shortens redemption periods and changes certain auction procedures when land banks participate in tax sales.

Who It Affects

• Local governments (counties and municipalities) and local land bank authorities: they can form multijurisdictional banks, set up governance, receive a share of property tax revenue, and use property for floodplain/drainage purposes.
• Property owners and taxpayers (including delinquent taxpayers): redemption periods may shorten for certain tax-delinquent properties, and tax processes may change where land banks participate; property owned by land banks is exempt from certain taxes and fees.

Key Provisions

• Creates multijurisdictional local land bank authorities via intergovernmental agreements between counties and/or municipalities; establishes initial board structure, bylaws, and dissolution rules.
• Authorizes local land bank authorities to acquire tax-delinquent property and tax liens; provides procedures for auctions, including tendering the minimum bid in the absence of open market bids and cash plus credit arrangements.
• Limits geographic boundaries for land bank acquisitions to the relevant county/municipality, and permits cross-boundary collaboration through intergovernmental agreements.
• Provides a tax exemption for land bank authority property from taxes and license/recording fees; allows certain long-term leases to community land trusts to be exempt from these fees.
• Allocates up to 75% of ad valorem taxes on land bank–conveyed property to the land bank authority for five years, beginning after conveyance, with distribution rules defined by local law and subject to existing tax allocation constraints.
• Authorizes conveyance of land bank property to state/local governments for floodplain management and stormwater drainage, with possible restrictions and acceptable forms of consideration (nominal payment, contractual obligation, or exchange).
• Allows intergovernmental agreements for transfer of delinquent properties, title clearance, operational services, and related arrangements between land banks and municipalities/counties.
• Gives the Governor authority to create a local land bank by executive order after a natural disaster state of emergency, with conversion to a formal local land bank and a 12-month dissolution deadline if not converted.
• Requires inventories of land bank properties and grants the authority to manage, lease, repair, insure, or dispose of property; auditing rights by the Examiners of Public Accounts with costs assessed to the local bank.
• Clarifies that land bank property is public property used for public purposes and income may be exempt from certain taxes and fees.

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