HB335 Alabama 2024 Session

Summary

Primary Sponsor

Jim HillRepresentative

Republican

Session

Regular Session 2024

Title

Tax lien auctions and sales; auctions and fees further provided for; tax lien redemptions; tax lien price further provided for; redemption of tax lien further provided for; prohibit entry on land; penalties established

Summary

HB335 updates Alabama's tax lien auctions and sales, including auction timing, fees, redemption rules, and certificate transfers.

What This Bill Does

It sets the public tax lien auction window to 8:30 a.m. to 4:00 p.m. and consolidates multiple fees into a single total. If the lien holder with the first right to purchase a subsequent delinquency does not exercise it, the redemption price is added to the next purchase price and the rights are transferred. It also clarifies who may redeem, requires a deed before a lien holder can enter the property, and makes certain books and records prima facie evidence of auction, sale, or redemption.

Who It Affects

• Property owners and other parties with an interest in delinquent property taxes, who may redeem liens, receive notices, and are subject to entry restrictions until a deed is issued.
• Tax lien certificate holders and prospective lien purchasers, who have transfer rights, fee structures, first-right purchase rights, redemption mechanics, and record-keeping requirements.

Key Provisions

• Public tax lien auctions must occur between 8:30 a.m. and 4:00 p.m.
• Three separate fees for tax liens are consolidated into a single total fee; fixed components include a $20 origination cost and a $45 administrative fee, plus any amount due to the holder for not exercising the first-right purchase.
• The holder of a tax lien certificate has a first-right option to purchase a subsequent delinquent lien; if not exercised, the redemption price is added to the next lien's purchase price and rights are transferred to the new purchaser.
• Tax lien certificates and their transfer are formalized, including required endorsements, transfer records, and a $5 certificate fee; certificates include redemption forms and lien details.
• Lien holders cannot enter or possess property until a deed is received; mortgagees may add related costs to loans; holders are protected from certain liabilities.
• Redeeming a tax lien requires paying the total delinquent amount plus accrued interest, penalties, fees, and costs, with separate receipts for current taxes; current-year taxes may be paid by the property owner when redeeming all liens.
• The county may sell unsold liens at private sale after a tax lien auction, within 45 days, for no less than all taxes, interest, penalties, costs, and the amount due to the holder who has not exercised the first-right purchase.
• Books and records kept by tax officials are prima facie evidence in foreclosure and quiet-title actions; violations of conflict-of-interest rules carry penalties (Class C misdemeanor).
• A security interest in a tax lien certificate may be created and perfected; notices and transfers follow formal procedures, with transfer fees and record-keeping.
• Effective date and applicability: the act applies to liens where final foreclosure judgment has not been entered by June 1, 2024, and becomes effective June 1, 2024.

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

Subjects

Property & Estates