SB342 Alabama 2025 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

2025 Regular Session

Title

Local land bank authorities; tax sale properties acquisitions; tax exemption for acquired properties; tax revenue allocation; conveyance to state and local governments under certain circumstances; creation of local land bank authorities authorized under certain conditions

Summary

SB342 would create multijurisdictional local land bank authorities to acquire, manage, and convey tax-delinquent and other property, with tax exemptions, revenue sharing, and emergency powers for floodplain and stormwater needs.

What This Bill Does

The bill authorizes counties and municipalities to form local land bank authorities through intergovernmental agreements and expands their powers to acquire and dispose of tax-delinquent property and other public land. It shortens redemption periods for certain tax-delinquent properties, allows minimum-bid purchases at public auctions if there are no open bids, and limits where land banks can acquire property. It provides tax and fee exemptions for land bank property, permits remittance of a portion of ad valorem taxes to the land bank for up to five years, and enables conveyance of land to state or local governments for floodplain management and stormwater projects. It also strengthens the legal process to quiet title in land bank acquisitions, gives the Governor emergency creation authority, and broadens land bank governance, financing, and operational powers.

Who It Affects

• Counties and municipalities that form and fund local land bank authorities, manage intergovernmental agreements, allocate tax revenues, and oversee operations.
• Owners of tax-delinquent properties and developers/buyers involved in redevelopment, who may face new acquisition rules, shorter redemption periods, and potential conveyances of land for floodplain management or stormwater projects.

Key Provisions

• Creates multijurisdictional local land bank authorities by intergovernmental agreement and outlines their powers, governance, and ability to issue bonds.
• Expands acquisition authority to include tax-delinquent parcels inside or outside boundaries, and allows open-market purchases to assemble redevelopment parcels.
• Provides for tax exemptions for land bank property and authorizes remittance of up to 75% of ad valorem taxes to the land bank for up to five years, with the exact percentage set by local law.
• Allows conveyance of land to state or local governments for floodplain management and stormwater drainage, with terms to be determined by the land bank.
• Gives the Governor power to create a local land bank by executive order during a declared state of emergency and to convert or dissolve it within specified timelines.
• Establishes a robust quiet-title process to vest title in the land bank, extinguish most liens, and require notice and hearings for interested parties.

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

Subjects

Authorities, Boards, & Commissions