Alabama 2022 Regular Session

Alabama House Bill HB371 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 HB371
2		-	2 217485-3
	2	+	2 217485-2
3	3		3 By Representative Ellis
4	4		4 RFD: County and Municipal Government
5	5		5 First Read: 16-FEB-22
6	6
7		-	Page 0 HB371
8		-	1
9		-	2 ENROLLED, An Act,
10		-	3 Relating to taxation; to amend Sections 40-10-180,
11		-	4 40-10-182, 40-10-183, 40-10-185, 40-10-186, 40-10-187,
12		-	5 40-10-188, 40-10-191, 40-10-193, 40-10-194, and 40-10-197,
13		-	6 Code of Alabama 1975; to authorize and provide procedures for
14		-	7 the use of an online public auction for the collection of
15		-	8 delinquent property taxes.
16		-	9 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
17		-	10 Section 1. Sections 40-10-180, 40-10-182, 40-10-183,
18		-	11 40-10-185, 40-10-186, 40-10-187, 40-10-188, 40-10-191,
19		-	12 40-10-193, 40-10-194, and 40-10-197, Code of Alabama 1975, are
20		-	13 amended to read as follows:
21		-	14 "§40-10-180.
22		-	15 "(a) The Legislature declares that the purpose of
23		-	16 this article is to provide counties with an alternative remedy
24		-	17 for collecting delinquent property taxes by the sale of a tax
25		-	18 lien.
26		-	19 "(b) The tax collecting official for each county
27		-	20 shall have the sole authority to decide whether his or her
28		-	21 county shall utilize the sale of a tax lien or the sale of
29		-	22 property to collect delinquent property taxes and the method
30		-	23 decided by the tax collecting official shall apply to all real
31		-	24 property in that county for the year so decided.
32		-	Page 1 HB371
33		-	1 "(c) The tax collecting official's decision to
34		-	2 change the current remedy used for collecting delinquent
35		-	3 property taxes shall be published on the tax collecting
36		-	4 official's website or by advertising once a week for three
37		-	5 consecutive weeks in a newspaper with general circulation in
38		-	6 that particular county, all of which shall occur not later
39		-	7 than October 1 when the property taxes become due and payable.
40		-	8 "§40-10-182.
41		-	9 "(a) All tax liens representing unpaid and
42		-	10 delinquent taxes on real property shall be subject to a tax
43		-	11 lien auction or a tax lien sale.
44		-	12 "(b)(1) The If the sale of a tax lien is chosen as
45		-	13 the method to collect delinquent property taxes, the tax
46		-	14 collecting official of any county shall conduct a public
47		-	15 auction for the sale and transfer of delinquent tax liens. The
48		-	16 tax collecting official shall notify the delinquent taxpayer
49		-	17 of the auction and all charges pursuant to Section 40-10-183
50		-	18 at least 30 days prior to the tax lien auction by first class
51		-	19 mail and by any one of the following:
52		-	20 "a. Advertising for once a week for three
53		-	21 consecutive weeks in a newspaper with general circulation in
54		-	22 the county where the property is located.
55		-	23 "b. Advertising on an online website controlled by
56		-	24 the tax collecting official and accessible from the tax
57		-	25 collecting official's website.
58		-	Page 2 HB371
59		-	1 "c. Posting at the courthouse of the county and if
60		-	2 possible in a public place in the precinct where the property
61		-	3 is located.
62		-	4 "(2) The notices shall declare the time, the method,
63		-	5 whether online or in person, and the location of the auction.
64		-	6 "(c) The tax collecting official may auction or sell
65		-	7 tax liens representing delinquent taxes for any year taxes are
66		-	8 delinquent and unpaid.
67		-	9 "§40-10-183.
68		-	10 "Prior At least 30 days prior to any tax lien
69		-	11 auction, the tax collecting official shall prepare and
70		-	12 maintain a list of all tax liens. The list shall be known as
71		-	13 the tax lien auction list and shall contain all of the
72		-	14 following:
73		-	15 "(1) The names of the several persons appearing in
74		-	16 the latest tax roll as the respective owners of tax-delinquent
75		-	17 properties.
76		-	18 "(2) A description of each property as it appears in
77		-	19 the latest tax roll.
78		-	20 "(3) The year or years for which taxes are
79		-	21 delinquent on each property.
80		-	22 "(4) The principal amount of the delinquent taxes
81		-	23 and the amount of accrued and accruing interest thereon and
82		-	24 penalties, fees, and administration costs pursuant to Section
83		-	Page 3 HB371
84		-	1 40-10-184(b) to the day of the proposed tax lien auction
85		-	2 relating to each year of assessment.
86		-	3 "§40-10-185.
87		-	4 "When a tax lien is offered for auction or sale, it
88		-	5 shall not be necessary to list, auction, or sell it as being
89		-	6 against the property of any specific person. The auction or
90		-	7 sale is not invalid by reason of the fact that the property
91		-	8 was assessed in the name of a person other than the rightful
92		-	9 owner or to a person unknown, if the description and the
93		-	10 uniform parcel number of the real estate in the tax lien
94		-	11 auction list is sufficient to identify it and the amount of
95		-	12 taxes, interest, penalties, fees, and costs for which its tax
96		-	13 lien is to be auctioned or sold.
97		-	14 "§40-10-186.
98		-	15 "(a) The purchase price for a tax lien shall be the
99		-	16 amount of delinquent taxes plus any interest, penalties, fees,
100		-	17 and costs accrued as of the date of the auction or sale.
101		-	18 "(b) The purchase price for a tax lien shall be paid
102		-	19 in a form acceptable to the tax collecting official in cash or
103		-	20 immediately available certified funds not later than one hour
104		-	21 before close of business on the date of the auction or sale
105		-	22 or, if the auction is online, not later than the close of
106		-	23 business two days following the date of the auction.
107		-	24 "(c) The purchase price for a tax lien received by
108		-	25 the tax collecting official shall be credited to the tax
109		-	Page 4 HB371
110		-	1 collecting official for purposes of calculating commissions,
111		-	2 if any, on taxes collected by the tax collecting official
112		-	3 pursuant to Section 40-5-4.
113		-	4 "§40-10-187.
114		-	5 "(a) The tax collecting official, upon receipt of
115		-	6 the purchase price, shall make, execute, and deliver a tax
116		-	7 lien certificate to each purchaser at a tax lien sale or
117		-	8 auction or to each assignee thereafter and shall collect from
118		-	9 the purchaser or assignee a fee of five dollars ($5) for each
119		-	10 tax lien certificate. The tax lien certificate shall be in a
120		-	11 form provided by the Department of Revenue and shall also
121		-	12 include a certificate of redemption form as provided in
122		-	13 Section 40-10-194.
123		-	14 "(b) A tax lien certificate shall evidence the
124		-	15 auction or sale or assignment to the holder of the tax lien
125		-	16 certificate of the delinquent and unpaid taxes, penalties,
126		-	17 interest, fees, and costs set forth therein and represented by
127		-	18 the tax lien.
128		-	19 "(c) A tax lien certificate shall bear the interest
129		-	20 rate per annum as bid on by the purchaser at the tax lien
130		-	21 auction or as agreed upon by the purchaser at the tax lien
131		-	22 sale, until the tax lien certificate is redeemed as provided
132		-	23 pursuant to Section 40-10-193 or Section 40-10-197.
133		-	24 "(d) The tax lien certificate shall do all of the
	7	+	Page 0 1 217485-2:n:02/15/2022:CMH/bm LSA2022-584R1
	8	+	2
	9	+	3
	10	+	4
	11	+	5
	12	+	6
	13	+	7
	14	+	8 SYNOPSIS: Existing law provides for the sale of tax
	15	+	9 liens for unpaid taxes through public auction.
	16	+	10 This bill would clarify that the tax
	17	+	11 collecting official of a county may conduct public
	18	+	12 tax lien auctions through an online method.
	19	+	13
	20	+	14 A BILL
	21	+	15 TO BE ENTITLED
	22	+	16 AN ACT
	23	+	17
	24	+	18 Relating to taxation; to amend Sections 40-10-180,
	25	+	19 40-10-182, 40-10-183, 40-10-185, 40-10-186, 40-10-187,
	26	+	20 40-10-188, 40-10-191, 40-10-193, 40-10-194, and 40-10-197,
	27	+	21 Code of Alabama 1975; to authorize and provide procedures for
	28	+	22 the use of an online public auction for the collection of
	29	+	23 delinquent property taxes.
	30	+	24 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	31	+	25 Section 1. Sections 40-10-180, 40-10-182, 40-10-183,
	32	+	26 40-10-185, 40-10-186, 40-10-187, 40-10-188, 40-10-191,
	33	+	Page 1 1 40-10-193, 40-10-194, and 40-10-197, Code of Alabama 1975, are
	34	+	2 amended to read as follows:
	35	+	3 "§40-10-180.
	36	+	4 "(a) The Legislature declares that the purpose of
	37	+	5 this article is to provide counties with an alternative remedy
	38	+	6 for collecting delinquent property taxes by the sale of a tax
	39	+	7 lien.
	40	+	8 "(b) The tax collecting official for each county
	41	+	9 shall have the sole authority to decide whether his or her
	42	+	10 county shall utilize the sale of a tax lien or the sale of
	43	+	11 property to collect delinquent property taxes and the method
	44	+	12 decided by the tax collecting official shall apply to all real
	45	+	13 property in that county for the year so decided.
	46	+	14 "(c) The tax collecting official's decision to
	47	+	15 change the current remedy used for collecting delinquent
	48	+	16 property taxes shall be published on the tax collecting
	49	+	17 official's website or by advertising once a week for three
	50	+	18 consecutive weeks in a newspaper with general circulation in
	51	+	19 that particular county, all of which shall occur not later
	52	+	20 than October 1 when the property taxes become due and payable.
	53	+	21 "§40-10-182.
	54	+	22 "(a) All tax liens representing unpaid and
	55	+	23 delinquent taxes on real property shall be subject to a tax
	56	+	24 lien auction or a tax lien sale.
	57	+	25 "(b)(1) The If the sale of a tax lien is chosen as
	58	+	26 the method to collect delinquent property taxes, the tax
	59	+	27 collecting official of any county shall conduct a public
	60	+	Page 2 1 auction for the sale and transfer of delinquent tax liens. The
	61	+	2 tax collecting official shall notify the delinquent taxpayer
	62	+	3 of the auction and all charges pursuant to Section 40-10-183
	63	+	4 at least 30 days prior to the tax lien auction by first class
	64	+	5 mail and by any one of the following:
	65	+	6 "a. Advertising for once a week for three
	66	+	7 consecutive weeks in a newspaper with general circulation in
	67	+	8 the county where the property is located.
	68	+	9 "b. Advertising on an online website controlled by
	69	+	10 the tax collecting official and accessible from the tax
	70	+	11 collecting official's website.
	71	+	12 "c. Posting at the courthouse of the county and if
	72	+	13 possible in a public place in the precinct where the property
	73	+	14 is located.
	74	+	15 "(2) The notices shall declare the time, the method,
	75	+	16 whether online or in person, and the location of the auction.
	76	+	17 "(c) The tax collecting official may auction or sell
	77	+	18 tax liens representing delinquent taxes for any year taxes are
	78	+	19 delinquent and unpaid.
	79	+	20 "§40-10-183.
	80	+	21 "Prior At least 30 days prior to any tax lien
	81	+	22 auction, the tax collecting official shall prepare and
	82	+	23 maintain a list of all tax liens. The list shall be known as
	83	+	24 the tax lien auction list and shall contain all of the
134	84		25 following:
135		-	Page 5 HB371
136		-	1 "(1) Describe the real property on which a tax lien
137		-	2 is auctioned or sold as it is described in the tax lien
138		-	3 auction list.
139		-	4 "(2) Specify the date on which the tax lien was
140		-	5 auctioned or sold to the original purchaser.
141		-	6 "(3) Specify the year of assessment to which the tax
142		-	7 lien relates and the amount for which the tax lien was
143		-	8 auctioned or sold to the original purchaser.
144		-	9 "(4) Recite the amount of all taxes, penalties,
145		-	10 interest, fees, and costs due on the property, which relate to
146		-	11 the year of assessment described in subdivision (3), as of the
147		-	12 date specified in subdivision (2).
148		-	13 "(5) Recite that the certificate bears interest at
149		-	14 the rate per annum bid on by the purchaser at the tax lien
150		-	15 auction or agreed upon at the tax lien sale on the amount
151		-	16 described in subdivision (4) from the date specified in
152		-	17 subdivision (2).
153		-	18 "(e) The purchaser of a tax lien certificate may
154		-	19 transfer and assign the certificate to any person, and the
155		-	20 transferee of a tax lien certificate may subsequently transfer
156		-	21 the certificate to any other person. The transferor of a tax
157		-	22 lien certificate shall endorse the certificate and shall swear
158		-	23 to the endorsement before a notary public or other officer
159		-	24 empowered to administer oaths. The transferee shall present
160		-	25 the endorsed tax lien certificate to the tax collecting
161		-	Page 6 HB371
162		-	1 official who prepared and executed the certificate, or his or
163		-	2 her successor, who, for a fee of five dollars ($5), shall
164		-	3 acknowledge the transfer on the certificate and shall make
165		-	4 note of the transfer on the record of tax lien auctions and
166		-	5 sales kept as provided in Section 40-10-188. An assignment and
167		-	6 transfer as provided in this subsection shall vest in the
168		-	7 assignee all the right and title of the original purchaser.
169		-	8 "(f) A security interest in a tax lien certificate
170		-	9 may be created and perfected in the manner provided for
171		-	10 general intangibles under Title 7. Notice of the security
172		-	11 interest shall be given to the tax collecting official
173		-	12 pursuant to Section 7-9A-406 and as otherwise required by law.
174		-	13 "(g) Within 10 30 days of a completed tax lien
175		-	14 auction or sale, the tax collecting official shall send notice
176		-	15 to the property owner for whom the property was assessed
177		-	16 informing the property owner that the tax lien has been
178		-	17 auctioned or sold. The notice shall include the date of
179		-	18 auction or sale and the name and address of the purchaser and
180		-	19 shall be made by first class mail to the address listed in the
181		-	20 assessment.
182		-	21 "§40-10-188.
183		-	22 "The tax collecting official shall make a correct
184		-	23 record of all auctions and sales of tax liens in a durable
185		-	24 book or an electronic file, which shall be known as the record
186		-	Page 7 HB371
187		-	1 of tax lien auctions and sales, containing all of the
188		-	2 following:
189		-	3 "(1) The date of auction or sale.
190		-	4 "(2) A description of each parcel and uniform parcel
191		-	5 number on which a tax lien was auctioned or sold.
192		-	6 "(3) The year of assessment to which the tax lien
193		-	7 relates.
194		-	8 "(4) The name and address of the property owner for
195		-	9 whom the property was assessed, if known.
196		-	10 "(5) The name and address of the original purchaser
197		-	11 of the tax lien.
198		-	12 "(6) The total amount of taxes, interest, penalties,
199		-	13 fees, and costs due on the tax lien, which relate to the year
200		-	14 of assessment, as described in Section 40-10-187, as of the
201		-	15 date of the auction or sale of the tax lien to the original
202		-	16 purchaser.
203		-	17 "(7) The interest rate bid on by the purchaser at
204		-	18 the tax lien auction or as agreed by the purchaser at the tax
205		-	19 lien sale.
206		-	20 "(8) The amount of any subsequent taxes, penalties,
207		-	21 interest, fees, and costs paid by the original purchaser, or
208		-	22 assignee, of the tax lien certificate as provided in Section
209		-	23 40-10-191 and the year of assessment to which the payment
210		-	24 relates.
211		-	Page 8 HB371
212		-	1 "(9) The name and address of the assignee, if any,
	85	+	Page 3 1 "(1) The names of the several persons appearing in
	86	+	2 the latest tax roll as the respective owners of tax-delinquent
	87	+	3 properties.
	88	+	4 "(2) A description of each property as it appears in
	89	+	5 the latest tax roll.
	90	+	6 "(3) The year or years for which taxes are
	91	+	7 delinquent on each property.
	92	+	8 "(4) The principal amount of the delinquent taxes
	93	+	9 and the amount of accrued and accruing interest thereon and
	94	+	10 penalties, fees, and administration costs pursuant to Section
	95	+	11 40-10-184(b) to the day of the proposed tax lien auction
	96	+	12 relating to each year of assessment.
	97	+	13 "§40-10-185.
	98	+	14 "When a tax lien is offered for auction or sale, it
	99	+	15 shall not be necessary to list, auction, or sell it as being
	100	+	16 against the property of any specific person. The auction or
	101	+	17 sale is not invalid by reason of the fact that the property
	102	+	18 was assessed in the name of a person other than the rightful
	103	+	19 owner or to a person unknown, if the description and the
	104	+	20 uniform parcel number of the real estate in the tax lien
	105	+	21 auction list is sufficient to identify it and the amount of
	106	+	22 taxes, interest, penalties, fees, and costs for which its tax
	107	+	23 lien is to be auctioned or sold.
	108	+	24 "§40-10-186.
	109	+	25 "(a) The purchase price for a tax lien shall be the
	110	+	26 amount of delinquent taxes plus any interest, penalties, fees,
	111	+	27 and costs accrued as of the date of the auction or sale.
	112	+	Page 4 1 "(b) The purchase price for a tax lien shall be paid
	113	+	2 in a form acceptable to the tax collecting official in cash or
	114	+	3 immediately available certified funds not later than one hour
	115	+	4 before close of business on the date of the auction or sale
	116	+	5 or, if the auction is online, not later than the close of
	117	+	6 business two days following the date of the auction.
	118	+	7 "(c) The purchase price for a tax lien received by
	119	+	8 the tax collecting official shall be credited to the tax
	120	+	9 collecting official for purposes of calculating commissions,
	121	+	10 if any, on taxes collected by the tax collecting official
	122	+	11 pursuant to Section 40-5-4.
	123	+	12 "§40-10-187.
	124	+	13 "(a) The tax collecting official, upon receipt of
	125	+	14 the purchase price, shall make, execute, and deliver a tax
	126	+	15 lien certificate to each purchaser at a tax lien sale or
	127	+	16 auction or to each assignee thereafter and shall collect from
	128	+	17 the purchaser or assignee a fee of five dollars ($5) for each
	129	+	18 tax lien certificate. The tax lien certificate shall be in a
	130	+	19 form provided by the Department of Revenue and shall also
	131	+	20 include a certificate of redemption form as provided in
	132	+	21 Section 40-10-194.
	133	+	22 "(b) A tax lien certificate shall evidence the
	134	+	23 auction or sale or assignment to the holder of the tax lien
	135	+	24 certificate of the delinquent and unpaid taxes, penalties,
	136	+	25 interest, fees, and costs set forth therein and represented by
	137	+	26 the tax lien.
	138	+	Page 5 1 "(c) A tax lien certificate shall bear the interest
	139	+	2 rate per annum as bid on by the purchaser at the tax lien
	140	+	3 auction or as agreed upon by the purchaser at the tax lien
	141	+	4 sale, until the tax lien certificate is redeemed as provided
	142	+	5 pursuant to Section 40-10-193 or Section 40-10-197.
	143	+	6 "(d) The tax lien certificate shall do all of the
	144	+	7 following:
	145	+	8 "(1) Describe the real property on which a tax lien
	146	+	9 is auctioned or sold as it is described in the tax lien
	147	+	10 auction list.
	148	+	11 "(2) Specify the date on which the tax lien was
	149	+	12 auctioned or sold to the original purchaser.
	150	+	13 "(3) Specify the year of assessment to which the tax
	151	+	14 lien relates and the amount for which the tax lien was
	152	+	15 auctioned or sold to the original purchaser.
	153	+	16 "(4) Recite the amount of all taxes, penalties,
	154	+	17 interest, fees, and costs due on the property, which relate to
	155	+	18 the year of assessment described in subdivision (3), as of the
	156	+	19 date specified in subdivision (2).
	157	+	20 "(5) Recite that the certificate bears interest at
	158	+	21 the rate per annum bid on by the purchaser at the tax lien
	159	+	22 auction or agreed upon at the tax lien sale on the amount
	160	+	23 described in subdivision (4) from the date specified in
	161	+	24 subdivision (2).
	162	+	25 "(e) The purchaser of a tax lien certificate may
	163	+	26 transfer and assign the certificate to any person, and the
	164	+	27 transferee of a tax lien certificate may subsequently transfer
	165	+	Page 6 1 the certificate to any other person. The transferor of a tax
	166	+	2 lien certificate shall endorse the certificate and shall swear
	167	+	3 to the endorsement before a notary public or other officer
	168	+	4 empowered to administer oaths. The transferee shall present
	169	+	5 the endorsed tax lien certificate to the tax collecting
	170	+	6 official who prepared and executed the certificate, or his or
	171	+	7 her successor, who, for a fee of five dollars ($5), shall
	172	+	8 acknowledge the transfer on the certificate and shall make
	173	+	9 note of the transfer on the record of tax lien auctions and
	174	+	10 sales kept as provided in Section 40-10-188. An assignment and
	175	+	11 transfer as provided in this subsection shall vest in the
	176	+	12 assignee all the right and title of the original purchaser.
	177	+	13 "(f) A security interest in a tax lien certificate
	178	+	14 may be created and perfected in the manner provided for
	179	+	15 general intangibles under Title 7. Notice of the security
	180	+	16 interest shall be given to the tax collecting official
	181	+	17 pursuant to Section 7-9A-406 and as otherwise required by law.
	182	+	18 "(g) Within 10 30 days of a completed tax lien
	183	+	19 auction or sale, the tax collecting official shall send notice
	184	+	20 to the property owner for whom the property was assessed
	185	+	21 informing the property owner that the tax lien has been
	186	+	22 auctioned or sold. The notice shall include the date of
	187	+	23 auction or sale and the name and address of the purchaser and
	188	+	24 shall be made by first class mail to the address listed in the
	189	+	25 assessment.
	190	+	26 "§40-10-188.
	191	+	Page 7 1 "The tax collecting official shall make a correct
	192	+	2 record of all auctions and sales of tax liens in a durable
	193	+	3 book or an electronic file, which shall be known as the record
	194	+	4 of tax lien auctions and sales, containing all of the
	195	+	5 following:
	196	+	6 "(1) The date of auction or sale.
	197	+	7 "(2) A description of each parcel and uniform parcel
	198	+	8 number on which a tax lien was auctioned or sold.
	199	+	9 "(3) The year of assessment to which the tax lien
	200	+	10 relates.
	201	+	11 "(4) The name and address of the property owner for
	202	+	12 whom the property was assessed, if known.
	203	+	13 "(5) The name and address of the original purchaser
	204	+	14 of the tax lien.
	205	+	15 "(6) The total amount of taxes, interest, penalties,
	206	+	16 fees, and costs due on the tax lien, which relate to the year
	207	+	17 of assessment, as described in Section 40-10-187, as of the
	208	+	18 date of the auction or sale of the tax lien to the original
	209	+	19 purchaser.
	210	+	20 "(7) The interest rate bid on by the purchaser at
	211	+	21 the tax lien auction or as agreed by the purchaser at the tax
	212	+	22 lien sale.
	213	+	23 "(8) The amount of any subsequent taxes, penalties,
	214	+	24 interest, fees, and costs paid by the original purchaser, or
	215	+	25 assignee, of the tax lien certificate as provided in Section
	216	+	26 40-10-191 and the year of assessment to which the payment
	217	+	27 relates.
	218	+	Page 8 1 "(9) The name and address of the assignee, if any,
213	219		2 and the date of assignment of the tax lien certificate.
214	220		3 "(10) Any security interest of which the tax
215	221		4 collecting official has been notified pursuant to Section
216	222		5 40-10-187(f).
217	223		6 "(10) (11) The name and address of the person
218	224		7 redeeming and the date of redemption.
219	225		8 "(11) (12) The total amount paid for redemption.
220	226		9 "§40-10-191.
221	227		10 "(a) The holder of a tax lien certificate shall have
222	228		11 the first right to purchase the tax lien relating to a
223	229		12 subsequent delinquency on the property described in the tax
224	230		13 lien certificate of the holder. A holder of the certificate
225	231		14 shall exercise this right between five and 30 days prior to
226	232		15 the tax lien auction date, and the purchase by the holder
227	233		16 shall be effective as of the date of the tax lien auction as
228	234		17 if the holder has been the winning bidder. A holder of the
229	235		18 certificate who exercises this right, upon payment of the
230	236		19 purchase price, shall be issued a certificate of purchase in
231	237		20 accordance with Section 40-10-187 and is entitled to the same
232	238		21 interest rate as shown on the previous tax lien certificate.
233	239		22 The owner of the property shall be notified within 30 days of
234	240		23 the completion of the first right of purchase in accordance
235	241		24 with Section 40-10-187(g). The owner of the property may pay
236		-	Page 9 HB371
237		-	1 the current year taxes due once the property owner redeems all
238		-	2 outstanding tax liens on the property.
239		-	3 "(b) In the event that a mortgagee is or becomes the
240		-	4 holder of a tax lien certificate, the mortgagee may add all
241		-	5 costs, fees, interest, penalties, and taxes regarding the tax
242		-	6 sale to the principal of the loan.
243		-	7 "(c) A holder of a tax lien certificate may abandon
244		-	8 the certificate at any time upon notification given to the tax
245		-	9 collecting official and the surrender of the tax lien
246		-	10 certificate. Abandonment of a tax lien certificate
247		-	11 relinquishes all rights of recovery of any monies or expenses.
248		-	12 "§40-10-193.
249		-	13 "(a)(1) Tax liens auctioned or sold may be redeemed
250		-	14 by any of the following:
251		-	15 "a. The owner, including a partial owner under
252		-	16 Section 40-10-195, or his or her heirs or personal
253		-	17 representative.
254		-	18 "b. Any mortgagee or purchaser of the property or
255		-	19 any portion of the property.
256		-	20 "c. Any other person listed under subsection (a) of
257		-	21 Section 40-10-120, if the property had been sold for taxes.
258		-	22 "(2) Property may be redeemed under subdivision (1)
259		-	23 by payment to the tax collecting official of the amount
260		-	24 specified on the tax lien certificate as the total amount of
261		-	25 delinquent tax, interest, penalties, fees excluding lost
262		-	Page 10 HB371
263		-	1 certificate fees provided in Section 40-10-190, and costs paid
264		-	2 to purchase the tax lien, plus interest at the rate specified
265		-	3 in the tax lien certificate, plus any due and owing taxes,
266		-	4 interest, penalties, fees, and costs due. The tax collecting
267		-	5 official shall provide a separate receipt for any current
268		-	6 taxes, interest, penalties, fees, or costs paid.
269		-	7 "(b) Statutory fees paid by the holder of the tax
270		-	8 lien certificate in connection with the tax lien certificate
271		-	9 shall be added to the amount payable on redemption and shall
272		-	10 also bear interest at the rate of interest specified in the
273		-	11 tax lien certificate.
274		-	12 "§40-10-194.
275		-	13 "(a) The tax collecting official shall, upon
276		-	14 application to redeem a tax lien, and upon being satisfied
277		-	15 that the person applying has the right to redeem the tax lien,
278		-	16 and upon payment of the amount due, issue to the person a
279		-	17 certificate of redemption appended to a copy of the
280		-	18 certificate of tax lien, giving the date of redemption, the
281		-	19 amount paid, and by whom redeemed, and shall make the proper
282		-	20 entries in the record of tax lien auctions or sales in his or
283		-	21 her office. Upon issuance of the certificate of redemption,
284		-	22 the redemption is complete and perfected, the tax lien is
285		-	23 satisfied, and the certificate of tax lien is void and of no
286		-	24 effect other than to support a request for payment of
287		-	25 redemption money pursuant to Section 40-10-196.
288		-	Page 11 HB371
289		-	1 "(b) For each certificate of redemption, the tax
290		-	2 collecting official shall collect from the person to whom the
291		-	3 certificate of redemption is issued a fee of ten dollars
292		-	4 ($10).
293		-	5 "(c) The holder of a certificate of redemption may
294		-	6 record the certificate with the recording officer of the
295		-	7 county.
296		-	8 "§40-10-197.
297		-	9 "(a) At any time not less than three years after the
298		-	10 auction or sale of a tax lien but not later more than 10 years
299		-	11 after the auction or sale, if the tax lien is lien has not
300		-	12 been redeemed, the a holder of all of the sold tax lien
301		-	13 certificate certificates for a parcel of property may bring in
302		-	14 the circuit court of the county in which the property is
303		-	15 located an action to foreclose the right to redeem and quiet
304		-	16 title to the property in the name of the holder of the tax
305		-	17 lien certificate. If any applicable law or court order
306		-	18 prohibits bringing an action to foreclose the right to redeem
307		-	19 and quiet title to the property, the limitation provided in
308		-	20 this section shall be extended 12 months following the
309		-	21 termination of the prohibition.
310		-	22 "(b)(1) At least 30 days before filing a tax lien
311		-	23 foreclosure action under this article, but not more than 180
312		-	24 days before the action is commenced, the holder of the tax
313		-	25 lien certificate certificates shall send notice of intent to
314		-	Page 12 HB371
315		-	1 file the foreclosure action by certified mail to all of the
316		-	2 following:
317		-	3 "a. The property owner of record, according to the
318		-	4 property tax records of the county in which the property is
319		-	5 located, at the owner's address shown in the records and at
320		-	6 the street address of the property if different.
321		-	7 "b. All holders of outstanding mortgages, judgment
322		-	8 liens, or other liens on the property as recorded in the
323		-	9 probate office of the county in which the property is located.
324		-	10 "c. The tax collecting official of the county in
325		-	11 which the property is located.
326		-	12 "(2) The notice shall include the property owner's
327		-	13 name, the uniform parcel number, the legal description of the
328		-	14 property, the name and address of the holder of the tax lien
329		-	15 certificate, and a statement that the holder proposes to file
330		-	16 a tax lien foreclosure action between as soon as 30 and but
331		-	17 not later than 180 days after the date of mailing of the
332		-	18 notice. If the holder fails to send the notice required by
333		-	19 this subsection, the court shall dismiss any tax lien
334		-	20 foreclosure action filed under this article.
335		-	21 "(c) The holder shall name as parties defendant to
336		-	22 the tax lien foreclosure action all persons entitled to redeem
337		-	23 under this article. Upon filing the tax lien foreclosure
338		-	24 action, the holder shall file record a notice as provided by
339		-	25 Section 35-4-131.
340		-	Page 13 HB371
341		-	1 "(d)(1) In a tax lien foreclosure action, if the
342		-	2 court finds that the tax lien auction or sale is valid, that
343		-	3 proper notice has been given, that the holder is the holder of
344		-	4 all of the sold tax certificates on the property, and that the
345		-	5 tax lien has liens have not been redeemed, the court shall
346		-	6 enter judgment foreclosing the right of the defendant or
347		-	7 defendants to redeem and shall direct the circuit clerk to
348		-	8 execute and deliver to the party in whose favor judgment is
349		-	9 entered a deed conveying the interests of the defendants in
350		-	10 the property described in the tax lien certificate
351		-	11 certificates.
352		-	12 "(2) After entry of judgment, a party whose rights
353		-	13 to redeem the tax lien liens are foreclosed has no further
354		-	14 legal or equitable right, title, or interest in the property
355		-	15 subject to the right of appeal and stay of execution as in
356		-	16 other civil actions.
357		-	17 "(e) The foreclosure of the right to redeem does not
358		-	18 extinguish any easement or right-of-way on or appurtenant to
359		-	19 the property or rights of any public utility or governmental
360		-	20 entity in the property, nor does it affect the rights of
361		-	21 holders of prior tax lien certificates.
362		-	22 "(f)(1) The clerk's deed executed in accordance with
363		-	23 subsection (d) shall include all of the following information:
364		-	24 "a. The date of the judgment.
365		-	25 "b. The number and style of the case.
366		-	Page 14 HB371
367		-	1 "c. The name of the plaintiff, who shall be known
368		-	2 stated as the grantee.
369		-	3 "d. The legal description of the property.
370		-	4 "e. The uniform parcel number of the property.
371		-	5 "f. The date of the conveyance.
372		-	6 "(2) The original deed shall be delivered to the
373		-	7 plaintiff for recording in the probate records in the county
374		-	8 in which the property is located.
375		-	9 "(g) Any person who is entitled to redeem under this
376		-	10 article may redeem at any time before judgment is entered,
377		-	11 notwithstanding that an action to foreclose has been
378		-	12 commenced, by paying into the circuit court the redemption
379		-	13 amount that would have been paid to the tax collecting
380		-	14 official under Section 40-10-193 plus any other amounts
381		-	15 determined by the court under this section. If the person who
382		-	16 redeems has been served personally or by publication in the
383		-	17 action, or if the person became an owner after the action
384		-	18 began and redeems after a notice is recorded pursuant to
385		-	19 subsection (c), judgment shall be entered in favor of the
386		-	20 plaintiff against the person for the redeeming party shall
387		-	21 also pay into the court with the redemption amount the costs
388		-	22 incurred by the plaintiff in the action, including reasonable
389		-	23 attorney fees actually incurred, to be determined by the
390		-	24 court. The court shall then order the tax lien certificates
391		-	25 cancelled and the tax liens void, the redemption amount be
392		-	Page 15 HB371
393		-	1 paid to the tax collecting official, and the costs and
394		-	2 attorney fees be paid to the plaintiff.
395		-	3 "(h) If a tax lien that was purchased pursuant to
396		-	4 this article is not redeemed and the holder of the tax lien
397		-	5 certificate fails to commence a tax lien foreclosure action on
398		-	6 or before 10 years from the date of the tax lien certificate,
399		-	7 the tax lien certificate shall expire and the lien shall
400		-	8 become void.
401		-	9 "(i) If a judicial proceeding prohibits bringing a
402		-	10 tax lien foreclosure action, the time of expiration under this
403		-	11 section shall be extended by 12 months following the
404		-	12 completion of the judicial proceeding."
405		-	13 Section 2. Section 40-10-201 is added to the Code of
406		-	14 Alabama 1975, to read as follows:
407		-	15 §40-10-201.
408		-	16 A tax collecting official may conduct a tax lien
409		-	17 auction and sale online or in person in accordance with
410		-	18 procedures established by the tax collecting official.
411		-	19 Section 3. This act shall become effective
412		-	20 immediately following its passage and approval by the
413		-	21 Governor, or its otherwise becoming law.
414		-	Page 16 HB371
415		-	1
416		-	2
417		-	3
418		-	4
419		-	Speaker of the House of Representatives
420		-
421		-	5
422		-	6 President and Presiding Officer of the Senate
423		-	House of Representatives7
424		-	I hereby certify that the within Act originated in8
425		-	9 and was passed by the House 01-MAR-22.
426		-	10
427		-	11 Jeff Woodard
428		-	12 Clerk
429		-	13
430		-	14
431		-	15
432		-	Senate16 17-MAR-22 Passed
433		-	17
434		-	Page 17
	242	+	25 the current year taxes due once the property owner redeems all
	243	+	26 outstanding tax liens on the property.
	244	+	Page 9 1 "(b) In the event that a mortgagee is or becomes the
	245	+	2 holder of a tax lien certificate, the mortgagee may add all
	246	+	3 costs, fees, interest, penalties, and taxes regarding the tax
	247	+	4 sale to the principal of the loan.
	248	+	5 "(c) A holder of a tax lien certificate may abandon
	249	+	6 the certificate at any time upon notification given to the tax
	250	+	7 collecting official and the surrender of the tax lien
	251	+	8 certificate. Abandonment of a tax lien certificate
	252	+	9 relinquishes all rights of recovery of any monies or expenses.
	253	+	10 "§40-10-193.
	254	+	11 "(a)(1) Tax liens auctioned or sold may be redeemed
	255	+	12 by any of the following:
	256	+	13 "a. The owner, including a partial owner under
	257	+	14 Section 40-10-195, or his or her heirs or personal
	258	+	15 representative.
	259	+	16 "b. Any mortgagee or purchaser of the property or
	260	+	17 any portion of the property.
	261	+	18 "c. Any other person listed under subsection (a) of
	262	+	19 Section 40-10-120, if the property had been sold for taxes.
	263	+	20 "(2) Property may be redeemed under subdivision (1)
	264	+	21 by payment to the tax collecting official of the amount
	265	+	22 specified on the tax lien certificate as the total amount of
	266	+	23 delinquent tax, interest, penalties, fees excluding lost
	267	+	24 certificate fees provided in Section 40-10-190, and costs paid
	268	+	25 to purchase the tax lien, plus interest at the rate specified
	269	+	26 in the tax lien certificate, plus any due and owing taxes,
	270	+	27 interest, penalties, fees, and costs due. The tax collecting
	271	+	Page 10 1 official shall provide a separate receipt for any current
	272	+	2 taxes, interest, penalties, fees, or costs paid.
	273	+	3 "(b) Statutory fees paid by the holder of the tax
	274	+	4 lien certificate in connection with the tax lien certificate
	275	+	5 shall be added to the amount payable on redemption and shall
	276	+	6 also bear interest at the rate of interest specified in the
	277	+	7 tax lien certificate.
	278	+	8 "§40-10-194.
	279	+	9 "(a) The tax collecting official shall, upon
	280	+	10 application to redeem a tax lien, and upon being satisfied
	281	+	11 that the person applying has the right to redeem the tax lien,
	282	+	12 and upon payment of the amount due, issue to the person a
	283	+	13 certificate of redemption appended to a copy of the
	284	+	14 certificate of tax lien, giving the date of redemption, the
	285	+	15 amount paid, and by whom redeemed, and shall make the proper
	286	+	16 entries in the record of tax lien auctions or sales in his or
	287	+	17 her office. Upon issuance of the certificate of redemption,
	288	+	18 the redemption is complete and perfected, the tax lien is
	289	+	19 satisfied, and the certificate of tax lien is void and of no
	290	+	20 effect other than to support a request for payment of
	291	+	21 redemption money pursuant to Section 40-10-196.
	292	+	22 "(b) For each certificate of redemption, the tax
	293	+	23 collecting official shall collect from the person to whom the
	294	+	24 certificate of redemption is issued a fee of ten dollars
	295	+	25 ($10).
	296	+	Page 11 1 "(c) The holder of a certificate of redemption may
	297	+	2 record the certificate with the recording officer of the
	298	+	3 county.
	299	+	4 "§40-10-197.
	300	+	5 "(a) At any time not less than three years after the
	301	+	6 auction or sale of a tax lien but not later more than 10 years
	302	+	7 after the auction or sale, if the tax lien is lien has not
	303	+	8 been redeemed, the a holder of all of the sold tax lien
	304	+	9 certificate certificates for a parcel of property may bring in
	305	+	10 the circuit court of the county in which the property is
	306	+	11 located an action to foreclose the right to redeem and quiet
	307	+	12 title to the property in the name of the holder of the tax
	308	+	13 lien certificate. If any applicable law or court order
	309	+	14 prohibits bringing an action to foreclose the right to redeem
	310	+	15 and quiet title to the property, the limitation provided in
	311	+	16 this section shall be extended 12 months following the
	312	+	17 termination of the prohibition.
	313	+	18 "(b)(1) At least 30 days before filing a tax lien
	314	+	19 foreclosure action under this article, but not more than 180
	315	+	20 days before the action is commenced, the holder of the tax
	316	+	21 lien certificate certificates shall send notice of intent to
	317	+	22 file the foreclosure action by certified mail to all of the
	318	+	23 following:
	319	+	24 "a. The property owner of record, according to the
	320	+	25 property tax records of the county in which the property is
	321	+	26 located, at the owner's address shown in the records and at
	322	+	27 the street address of the property if different.
	323	+	Page 12 1 "b. All holders of outstanding mortgages, judgment
	324	+	2 liens, or other liens on the property as recorded in the
	325	+	3 probate office of the county in which the property is located.
	326	+	4 "c. The tax collecting official of the county in
	327	+	5 which the property is located.
	328	+	6 "(2) The notice shall include the property owner's
	329	+	7 name, the uniform parcel number, the legal description of the
	330	+	8 property, the name and address of the holder of the tax lien
	331	+	9 certificate, and a statement that the holder proposes to file
	332	+	10 a tax lien foreclosure action between as soon as 30 and but
	333	+	11 not later than 180 days after the date of mailing of the
	334	+	12 notice. If the holder fails to send the notice required by
	335	+	13 this subsection, the court shall dismiss any tax lien
	336	+	14 foreclosure action filed under this article.
	337	+	15 "(c) The holder shall name as parties defendant to
	338	+	16 the tax lien foreclosure action all persons entitled to redeem
	339	+	17 under this article. Upon filing the tax lien foreclosure
	340	+	18 action, the holder shall file record a notice as provided by
	341	+	19 Section 35-4-131.
	342	+	20 "(d)(1) In a tax lien foreclosure action, if the
	343	+	21 court finds that the tax lien auction or sale is valid, that
	344	+	22 proper notice has been given, that the holder is the holder of
	345	+	23 all of the sold tax certificates on the property, and that the
	346	+	24 tax lien has liens have not been redeemed, the court shall
	347	+	25 enter judgment foreclosing the right of the defendant or
	348	+	26 defendants to redeem and shall direct the circuit clerk to
	349	+	27 execute and deliver to the party in whose favor judgment is
	350	+	Page 13 1 entered a deed conveying the interests of the defendants in
	351	+	2 the property described in the tax lien certificate
	352	+	3 certificates.
	353	+	4 "(2) After entry of judgment, a party whose rights
	354	+	5 to redeem the tax lien liens are foreclosed has no further
	355	+	6 legal or equitable right, title, or interest in the property
	356	+	7 subject to the right of appeal and stay of execution as in
	357	+	8 other civil actions.
	358	+	9 "(e) The foreclosure of the right to redeem does not
	359	+	10 extinguish any easement or right-of-way on or appurtenant to
	360	+	11 the property or rights of any public utility or governmental
	361	+	12 entity in the property, nor does it affect the rights of
	362	+	13 holders of prior tax lien certificates.
	363	+	14 "(f)(1) The clerk's deed executed in accordance with
	364	+	15 subsection (d) shall include all of the following information:
	365	+	16 "a. The date of the judgment.
	366	+	17 "b. The number and style of the case.
	367	+	18 "c. The name of the plaintiff, who shall be known
	368	+	19 stated as the grantee.
	369	+	20 "d. The legal description of the property.
	370	+	21 "e. The uniform parcel number of the property.
	371	+	22 "f. The date of the conveyance.
	372	+	23 "(2) The original deed shall be delivered to the
	373	+	24 plaintiff for recording in the probate records in the county
	374	+	25 in which the property is located.
	375	+	26 "(g) Any person who is entitled to redeem under this
	376	+	27 article may redeem at any time before judgment is entered,
	377	+	Page 14 1 notwithstanding that an action to foreclose has been
	378	+	2 commenced, by paying into the circuit court the redemption
	379	+	3 amount that would have been paid to the tax collecting
	380	+	4 official under Section 40-10-193 plus any other amounts
	381	+	5 determined by the court under this section. If the person who
	382	+	6 redeems has been served personally or by publication in the
	383	+	7 action, or if the person became an owner after the action
	384	+	8 began and redeems after a notice is recorded pursuant to
	385	+	9 subsection (c), judgment shall be entered in favor of the
	386	+	10 plaintiff against the person for the redeeming party shall
	387	+	11 also pay into the court with the redemption amount the costs
	388	+	12 incurred by the plaintiff in the action, including reasonable
	389	+	13 attorney fees actually incurred, to be determined by the
	390	+	14 court. The court shall then order the tax lien certificates
	391	+	15 cancelled and the tax liens void, the redemption amount be
	392	+	16 paid to the tax collecting official, and the costs and
	393	+	17 attorney fees be paid to the plaintiff.
	394	+	18 "(h) If a tax lien that was purchased pursuant to
	395	+	19 this article is not redeemed and the holder of the tax lien
	396	+	20 certificate fails to commence a tax lien foreclosure action on
	397	+	21 or before 10 years from the date of the tax lien certificate,
	398	+	22 the tax lien certificate shall expire and the lien shall
	399	+	23 become void.
	400	+	24 "(i) If a judicial proceeding prohibits bringing a
	401	+	25 tax lien foreclosure action, the time of expiration under this
	402	+	26 section shall be extended by 12 months following the
	403	+	27 completion of the judicial proceeding."
	404	+	Page 15 1 Section 2. Section 40-10-201 is added to the Code of
	405	+	2 Alabama 1975, to read as follows:
	406	+	3 §40-10-201.
	407	+	4 A tax collecting official may conduct a tax lien
	408	+	5 auction and sale online or in person in accordance with
	409	+	6 procedures established by the tax collecting official.
	410	+	7 Section 3. This act shall become effective
	411	+	8 immediately following its passage and approval by the
	412	+	9 Governor, or its otherwise becoming law.
	413	+	Page 16