SB256 Alabama 2025 Session

Summary

Primary Sponsor

David SessionsSenator

Republican

Session

2025 Regular Session

Title

Mobile County; amend definition of municipal tax lien to authorize the inclusion of certain weed liens on a tax bill under certain circumstances; deem municipality as prevailing party in certain bid auctions resulting in a tie; authorize municipality to enter property to make repairs under certain circumstances; and authorize tax collecting official to sell a tax lien under certain circumstances.

Summary

SB256 expands Class 2 municipalities' powers to include weed liens on tax bills under certain value conditions, clarifies tie-break rules in tax auctions, allows repairs on liened properties, and broadens options for selling unsold tax liens.

What This Bill Does

First, it allows weed liens to be included as municipal code liens on the property tax bill if the lien amount (excluding penalties and interest) is more than 50% of the property’s fair market value, as determined by the Mobile Revenue Commissioner. Second, it makes Class 2 municipalities the prevailing party in online or in-person tax lien auctions when the bid ends in a tie. Third, it authorizes Class 2 municipalities to enter properties they hold tax liens on to make repairs, specifies that repair costs are not included in the redemption price, and allows repairs to serve a public purpose while the lien remains. Finally, it lets tax lien certificates unsold for at least three years be sold for the best price to a Class 2 municipality, a designated nonprofit entity, or a governmental entity, with private sale interest capped at 12% and related recordkeeping requirements; the act becomes effective October 1, 2025.

Who It Affects

• Class 2 municipalities (including those in Mobile County) – gain authority to include weed liens on tax bills when the value threshold is met, and gain new powers related to auctions, property repairs, and selling unsold liens.
• Tax lien certificate holders, lien purchasers, and property owners – subject to new rules on what counts as a lien, how redemption and repair costs are calculated, and new avenues for selling unsold liens to specified buyers.

Key Provisions

• Amends 11-40-62 to allow weed liens to be included on the tax bill if the lien amount (excluding penalties and interest) exceeds 50% of the property's fair market value, as determined by the Mobile Revenue Commissioner.
• Class 2 municipalities are deemed the prevailing party in tie bids at tax lien auctions (online or in person).
• Authorizes Class 2 municipalities to enter properties they hold tax liens on to make repairs; repair costs are not included in the redemption amount; the lien for repairs remains and may affect minimum bid determinations if a public auction is involved.
• Allows unsold tax lien certificates to be sold after three years for the best price offered by a Class 2 municipality, a designated nonprofit entity, or a governmental entity; private sales may bear interest up to 12%; all such sales are to be recorded.
• Establishes related procedures and rights for tax lien foreclosures, including notices and redemption costs, and clarifies that certain redemption and title actions apply to purchasers.
• Effective date: October 1, 2025.

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

Subjects

Mobile County