Alabama 2022 Regular Session

Alabama Senate Bill SB339 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 SB339
2	2	2 219616-1
3	3	3 By Senator Coleman-Madison
4	4	4 RFD: Banking and Insurance
5	5	5 First Read: 07-APR-22
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7	7	Page 0 1 219616-1:n:04/07/2022:SLU/cr LSA2022-1118
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10	10	4
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13	13	7
14	14	8 SYNOPSIS: Under existing law, the acquisition of real
15	15	9 property by local land bank authorities is subject
16	16	10 to certain restrictions on the procedure,
17	17	11 geographic location, and costs.
18	18	12 This bill would provide a shortened
19	19	13 redemption period for a tax delinquent property
20	20	14 that is not acquired by an open market bidder at a
21	21	15 tax sale auction, would authorize a local
22	22	16 government or a local land bank authority to
23	23	17 purchase property at public auction by tendering
24	24	18 the minimum bid in the absence of open market bids,
25	25	19 and would limit the geographical boundaries of
26	26	20 local land bank authority acquisitions.
27	27	21 This bill would also provide for the
28	28	22 creation of multijurisdictional local land bank
29	29	23 authorities by intergovernmental agreements, a
30	30	24 property tax exemption for a property owned by a
31	31	25 local land bank authority, authorize local
32	32	26 governments to allocate a portion of local property
33	33	27 tax revenues to local land bank authorities, a
34	34	Page 1 1 local land bank authority to convey properties to
35	35	2 state and local governments for floodplain
36	36	3 management and storm water drainage, and the
37	37	4 Governor to create a local land bank authority by
38	38	5 executive order following a declaration of a state
39	39	6 of emergency.
40	40	7
41	41	8 A BILL
42	42	9 TO BE ENTITLED
43	43	10 AN ACT
44	44	11
45	45	12 Relating to land bank authorities; to amend Sections
46	46	13 24-9-4, 24-9-6, 24-9-10, 40-1-3, 40-10-1, 40-10-18, 40-10-29,
47	47	14 40-10-120, 40-10-184, and to add Sections 29-4-11 and 29-4-12
48	48	15 to the Code of Alabama 1975; to provide for the creation of
49	49	16 multijurisdictional local land bank authorities; further
50	50	17 authorize the acquisition of tax delinquent property and tax
51	51	18 liens by local land bank authorities; further provide for the
52	52	19 exemption of land bank authority property from taxes and fees;
53	53	20 provide for the allocation of a portion of the ad valorem
54	54	21 taxes on property conveyed by a land bank authority to the
55	55	22 authority; further provide for the conveyance of land bank
56	56	23 authority property; and authorize the Governor to create a
57	57	24 local land bank authority in the event of a state of
58	58	25 emergency.
59	59	26 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
60	60	Page 2 1 Section 1. Sections 24-9-4, 24-9-6, and 24-9-10,
61	61	2 Code of Alabama 1975, are amended to read as follows:
62	62	3 "§24-9-4.
63	63	4 "When used in the chapter, the following words shall
64	64	5 have the following meanings:
65	65	6 "(1) AGREEMENT. The intergovernmental cooperation
66	66	7 agreement entered into between an authority and a local
67	67	8 authority by the parties pursuant to this chapter.
68	68	9 "(2) AUTHORITY. The Alabama Land Bank Authority.
69	69	10 "(3) BOARD. The Alabama Land Bank Authority Board.
70	70	11 "(4) LOCAL LAND BANK AUTHORITY. A local land bank
71	71	12 authority created by a county or municipality as provided in
72	72	13 Section 24-9-10.
73	73	14 "(5) PROPERTY. Real property, including any
74	74	15 improvements thereon.
75	75	16 "(6) TAX-DELINQUENT PROPERTY. Any property on which
76	76	17 the taxes levied and assessed by any party remain in whole or
77	77	18 in part unpaid on the date due and payable.
78	78	19 "§24-9-6.
79	79	20 "(a) The authority, at such times as it deems to be
80	80	21 appropriate, may submit a written request to the Land
81	81	22 Commissioner of the Alabama Department of Revenue for the
82	82	23 transfer of the state's interest in certain properties to the
83	83	24 authority. Upon receipt of such request, the Land Commissioner
84	84	25 shall issue a tax deed conveying the state's interest in the
85	85	26 property to the authority. The authority shall not be required
86	86	Page 3 1 to pay the amount deemed to have been bid to cover delinquent
87	87	2 taxes or any other amount in order to obtain the tax deed.
88	88	3 "(b)(1) Delinquent property that may be transferred
89	89	4 by the Land Commissioner to the authority shall be limited to
90	90	5 parcels that have been bid in for the state pursuant to
91	91	6 Chapter 10 of Title 40 for at least three years and the
92	92	7 state's interest in real property acquired pursuant to Chapter
93	93	8 29 of Title 40 for delinquent taxes administered by the state
94	94	9 and held for at least three years. The three-year period shall
95	95	10 not apply to properties encumbered by one or more housing or
96	96	11 building code liens transmitted to the tax collecting official
97	97	12 in accordance with Title 11.
98	98	13 "(2) The Land Commissioner or his or her agents or
99	99	14 assistants may adopt rules necessary to transfer such
100	100	15 properties to the authority.
101	101	16 "(c) The authority shall administer properties
102	102	17 acquired by it as follows:
103	103	18 "(1) All property acquired by the authority shall be
104	104	19 inventoried and the inventory shall be maintained as a public
105	105	20 record.
106	106	21 "(2) The authority shall have the power to manage,
107	107	22 maintain, protect, rent, lease, repair, insure, alter, sell,
108	108	23 trade, exchange, or otherwise dispose of any property acquired
109	109	24 pursuant to subsection (b)(1), on terms and conditions
110	110	25 determined in the sole discretion of the authority.
111	111	Page 4 1 "(d) Nothing contained in Act 2013-249 shall be
112	112	2 construed to grant any power of eminent domain to the
113	113	3 authority or any local authority.
114	114	4 "§24-9-10.
115	115	5 "(a) If the number of tax delinquent properties in a
116	116	6 municipality exceeds 100, then the governing body of a
117	117	7 municipality may adopt a resolution declaring that it is wise,
118	118	8 expedient, and necessary that a local land bank authority be
119	119	9 formed by the municipality by the filing for record of a
120	120	10 certificate of incorporation in accordance with the provisions
121	121	11 of subsection (c)(d).
122	122	12 "(b) If the number of tax delinquent properties in a
123	123	13 municipality exceeds 100, then the governing body of a county
124	124	14 may adopt a resolution declaring that it is wise, expedient,
125	125	15 and necessary that a local land bank authority be formed by
126	126	16 the county by the filing for record of a certificate of
127	127	17 incorporation in accordance with the provisions of subsection
128	128	18 (c)(d).
129	129	19 "(c) A county and a municipality located within such
130	130	20 county may create a single land bank authority by an
131	131	21 intergovernmental agreement, so long as both the county and
132	132	22 the municipality each meet the criteria of subsections (a) and
133	133	23 (b). The intergovernmental agreement shall comply with all
134	134	24 provisions of subsections (d) and (e).
135	135	25 "(c)(d) Upon the adoption of the authorizing
136	136	26 resolution, the municipality or county, as the case may be,
137	137	27 shall proceed to incorporate the local land bank authority by
138	138	Page 5 1 filing for record in the office of the judge of probate of the
139	139	2 county a certificate of incorporation which shall comply in
140	140	3 form and substance with the requirements of this section and
141	141	4 which shall be in the form and executed in the manner herein
142	142	5 provided. The certificate of incorporation of the local land
143	143	6 bank authority shall state all of the following:
144	144	7 "(1) The name of the local unit of government
145	145	8 forming the local land bank authority.
146	146	9 "(2) The name of the local land bank authority.
147	147	10 "(3) The size of the initial governing body of the
148	148	11 local land bank authority, which shall be composed of an odd
149	149	12 number of members, but not less than five.
150	150	13 "(4) The qualifications, method of selection, and
151	151	14 terms of office of the initial board members.
152	152	15 "(5) A method for the adoption of bylaws by the
153	153	16 governing body of the local land bank authority.
154	154	17 "(6) A method for the distribution of proceeds from
155	155	18 the activities of the local land bank authority.
156	156	19 "(7) A method for the dissolution of the local land
157	157	20 bank authority.
158	158	21 "(8) Any other matters considered advisable by the
159	159	22 local unit of government, consistent with Act 2013-249.
160	160	23 "(d)(e) Following incorporation, a local authority
161	161	24 may enter into an intergovernmental agreement with the
162	162	25 authority providing for the transfer to the local authority of
163	163	26 any property held by the authority which is located within the
164	164	Page 6 1 corporate limits of the municipality or the boundary of the
165	165	2 county which created the land bank.
166	166	3 "(e)(f) A local land bank authority shall have all
167	167	4 of the powers of the authority as set forth in this chapter.
168	168	5 In addition, a local land bank authority shall have the
169	169	6 following powers:
170	170	7 "(1) Without the approval of a local unit of
171	171	8 government in which property held by the local land bank
172	172	9 authority is located, control, hold, manage, maintain,
173	173	10 operate, repair, lease as lessor, secure, prevent the waste or
174	174	11 deterioration of, demolish, and take all other actions
175	175	12 necessary to preserve the value of the property it holds or
176	176	13 owns. An A local land bank authority may take or perform the
177	177	14 following actions with respect to property held or owned by
178	178	15 the local land bank authority:
179	179	16 "a. Grant or acquire a license, easement, or option
180	180	17 with respect to property as the authority determines is
181	181	18 reasonably necessary to achieve the purposes of this chapter.
182	182	19 "b. Fix, charge, and collect rents, fees, and
183	183	20 charges for use of property under the control of the local
184	184	21 land bank authority or for services provided by the authority.
185	185	22 "c. Pay any tax or special assessment due on
186	186	23 property acquired or owned by the local land bank authority.
187	187	24 "d. Take any action, provide any notice, or
188	188	25 institute any proceeding required to clear or quiet title to
189	189	26 property held by the local land bank authority in order to
190	190	27 establish ownership by and vest title to property in the
191	191	Page 7 1 authority, including, but not limited to, a quiet title and
192	192	2 foreclosure action pursuant to Section 24-9-8.
193	193	3 "e. Remediate environmental contamination on any
194	194	4 property held by the local land bank authority.
195	195	5 "(2) Enter into an intergovernmental agreement with
196	196	6 a municipality or county, or another local land bank
197	197	7 authority, providing for one or more of the following:
198	198	8 "a. The conveyance to the authority of tax
199	199	9 delinquent property held by the municipality or county for
200	200	10 title clearance, including, but not limited to, a quiet title
201	201	11 and foreclosure action under Section 24-9-8.
202	202	12 "b. The acquisition and title clearance of property
203	203	13 by the authority of property to be conveyed by the local land
204	204	14 bank authority to the municipality or county or another entity
205	205	15 pursuant to the agreement between the authority and the
206	206	16 municipality or county.
207	207	17 "c. The performance of operational and
208	208	18 administrative services to be provided to another local land
209	209	19 bank authority.
210	210	20 "(3) Acquire real property at a sale conducted in
211	211	21 accordance with Section 40-10-18 by tendering a bid equal to
212	212	22 the minimum amount specified in the decree of sale and the
213	213	23 costs and expenses subsequently accruing, which shall be
214	214	24 accepted by the judge of probate and the local land bank
215	215	25 authority shall be the purchaser at the sale. The tender of
216	216	26 the minimum bid in accordance with this subsection shall be
217	217	27 for cash, with a credit for any and all components of the
218	218	Page 8 1 minimum bid already due and payable to the governmental entity
219	219	2 that created the local land bank authority. After 90 days from
220	220	3 the date of sale, the judge of probate shall execute and
221	221	4 deliver to the governmental entity a deed to each lot or
222	222	5 parcel of real estate sold to the local land bank authority.
223	223	6 The deed shall convey to, and vest in, the grantee all right,
224	224	7 title, interest, and estate of any and all persons having an
225	225	8 interest in the property as of the date of the sale.
226	226	9 "(4) Acquire a tax lien at an auction conducted in
227	227	10 accordance with Section 40-10-184 by tendering a cash bid at
228	228	11 an interest rate of 0.00 percent, which shall be accepted as
229	229	12 the successful bid. The bid shall be tendered for cash subject
230	230	13 to a credit for any and all amounts already due and payable to
231	231	14 the governmental entity that created the local land bank
232	232	15 authority.
233	233	16 "(f)(g) A local unit of government and any agency or
234	234	17 department of such local unit of government may do one or more
235	235	18 of the following:
236	236	19 "(1) Anything necessary or convenient to aid a local
237	237	20 land bank authority in fulfilling its purposes under Act
238	238	21 2013-249.
239	239	22 "(2) Lend, grant, transfer, appropriate, or
240	240	23 contribute funds to a local land bank authority in furtherance
241	241	24 of its purposes.
242	242	25 "(3) Lend, grant, transfer, or convey funds to a
243	243	26 local land bank authority that are received from the federal
244	244	Page 9 1 government or this state or from any nongovernmental entity in
245	245	2 aid of the purposes of Act 2013-249.
246	246	3 "(g)(h) A local land bank authority created by a
247	247	4 county or a municipality may acquire real property only within
248	248	5 the geographical boundaries of the county or municipality, and
249	249	6 only in those portions of the county or municipality In the
250	250	7 event a county creates a local authority, the local authority
251	251	8 may acquire real property that has been tax delinquent for
252	252	9 three or more years only in those portions of the county
253	253	10 located outside of the geographical boundaries of any other
254	254	11 local land bank authority created by any municipality located
255	255	12 partially or entirely within the county. The Land Bank
256	256	13 Authority may acquire real property that has been tax
257	257	14 delinquent for three or more years only in those portions of
258	258	15 the state located outside of the geographical boundaries of
259	259	16 any local authority created by any municipality or county.
260	260	17 "(h)(i) Any local land bank authority formed by a
261	261	18 municipality or county pursuant to this section shall continue
262	262	19 to exist in accordance with its articles of incorporation and
263	263	20 this section in the event that the number of tax delinquent
264	264	21 properties in the local jurisdiction forming the authority
265	265	22 subsequently decreases to 100 or less.
266	266	23 "(i)(j) Any local land bank authority formed by a
267	267	24 municipality or county pursuant to this section shall permit
268	268	25 the Alabama Department of Examiners of Public Accounts to
269	269	26 perform an audit upon request by the department. The
270	270	Page 10 1 department shall assess the cost of the audit against the
271	271	2 local authority.
272	272	3 "(k) As public property used for public purposes,
273	273	4 the real property of a local land bank authority, including,
274	274	5 but not limited to, real property held by a local land bank
275	275	6 authority pursuant to a long-term lease contract with
276	276	7 community land trusts, and its income are exempt from all
277	277	8 license fees, recording fees, and all other taxes imposed by
278	278	9 the state or by any of its political subdivisions.
279	279	10 "(l) Up to 75 percent of the ad valorem taxes
280	280	11 collected on real property, except any state or school
281	281	12 district ad valorem tax, conveyed by a local land bank
282	282	13 authority shall be remitted to the local land bank authority.
283	283	14 The specific percentage of the taxes to be remitted shall be
284	284	15 set forth in the local law, ordinance, resolution, or
285	285	16 intergovernmental contract of the local land bank authority.
286	286	17 The allocation of property tax revenues shall commence with
287	287	18 the first taxable year following the date of conveyance and
288	288	19 shall continue for a period of five consecutive tax years. The
289	289	20 funds shall be remitted to the local land bank authority in
290	290	21 accordance with the administrative procedures established by
291	291	22 the tax commissioner or tax collecting official of the county
292	292	23 in which the local land bank authority is located. The
293	293	24 allocation of property tax revenues shall not occur if the
294	294	25 taxes have been previously allocated to a tax allocation
295	295	26 district, or allocated to secure a debt of the local
296	296	27 government, unless the tax allocation district or local
297	297	Page 11 1 government enters into an agreement with the local land bank
298	298	2 authority for the remittance of the funds to the local land
299	299	3 bank authority."
300	300	4 Section 2. Sections 24-9-11 and 24-9-12 are added to
301	301	5 the Code of Alabama 1975, to read as follows:
302	302	6 §24-9-11.
303	303	7 (a) A local land bank authority may convey ownership
304	304	8 of, or interest in, real property to a state or local
305	305	9 governmental entity for purposes of floodplain management or
306	306	10 storm water drainage in the event of all of the following:
307	307	11 (1) Floodplain management or storm water retention
308	308	12 or drainage is the highest and best use of the real property.
309	309	13 (2) As a result of housing and building code
310	310	14 restrictions, floodplain elevations, and other local, state,
311	311	15 or federal law or public and private agreements, conditions,
312	312	16 and limitations, the real property is no longer suitable for
313	313	17 development or redevelopment.
314	314	18 (b)(1) A local land bank authority may convey
315	315	19 ownership of, or interest in, real property under this section
316	316	20 by grant, deed lease, or other form of conveyance, and may
317	317	21 include additional limitations, restrictions, and conditions
318	318	22 to be determined by the local land bank authority.
319	319	23 (2) Consideration for the conveyance may be any of
320	320	24 the following not otherwise prohibited by law:
321	321	25 a. A nominal monetary payment.
322	322	26 b. A contractual obligation in favor of the party to
323	323	27 which the real property is being conveyed.
324	324	Page 12 1 c. An exchange of real property.
325	325	2 d. Other consideration determined by the local land
326	326	3 bank authority and the party to whom the real property is to
327	327	4 be conveyed.
328	328	5 §24-9-12.
329	329	6 (a) Upon declaring a state of emergency caused by a
330	330	7 natural disaster that causes widespread damage to, and
331	331	8 destruction of, real property and improvements and dislocation
332	332	9 of residents, the Governor may create a local land bank
333	333	10 authority in accordance with this section.
334	334	11 (1) The Governor may issue an executive order
335	335	12 providing for the immediate creation of a local land bank
336	336	13 authority of and for local governments of the geographic areas
337	337	14 subject to the declaration of the state of emergency.
338	338	15 (2) The executive order shall provide for
339	339	16 incorporation and certification of the local land bank
340	340	17 authority as required under this chapter.
341	341	18 (b) Any local land bank authority created pursuant
342	342	19 to this section shall have all powers of a local land bank
343	343	20 authority created pursuant to Section 24-9-10.
344	344	21 (c) Upon the necessary and appropriate action of the
345	345	22 local governments having jurisdiction over the geographic
346	346	23 areas subject to the declaration of the state of emergency, a
347	347	24 local land bank authority created pursuant to this section may
348	348	25 be converted into a local land bank authority created pursuant
349	349	26 to Section 24-9-10, at which time, the local land bank
350	350	Page 13 1 authority shall be the successor in interest and at law to the
351	351	2 local authority created pursuant to this section.
352	352	3 (d) In the event that a local land bank authority
353	353	4 created pursuant to this section is not converted pursuant to
354	354	5 subsection (c), 12 months following the date of the Governor's
355	355	6 executive order, the local land bank authority created by the
356	356	7 executive order shall be dissolved in accordance with the
357	357	8 provisions of the Governor's executive order.
358	358	9 Section 3. Sections 40-1-3, 40-10-1, 40-10-18,
359	359	10 40-10-29, 40-10-120, and 40-10-184, Code of Alabama 1975, are
360	360	11 amended to read as follows:
361	361	12 "§40-1-3.
362	362	13 "From and after October 1 of each year, when
363	363	14 property becomes assessable the state shall have a lien upon
364	364	15 each and every piece or parcel of property owned by any
365	365	16 taxpayer for the payment of all taxes which may be assessed
366	366	17 against him or her and upon each piece and parcel of property
367	367	18 real or personal assessed to owner unknown, which lien shall
368	368	19 continue until such taxes are paid, and the county shall have
369	369	20 a like lien thereon for the payment of the taxes which may be
370	370	21 assessed by it; and, if such property is within the limits of
371	371	22 a municipal corporation, such municipal corporation shall have
372	372	23 a like lien thereon for the payment of the taxes which may be
373	373	24 assessed by it. These liens shall be superior to all other
374	374	25 liens and shall exist in the order named, and each of such
375	375	26 liens may be enforced and foreclosed by sale for taxes as
376	376	27 provided in this title, or as other liens upon property are
377	377	Page 14 1 enforced, except as otherwise provided by laws law. These
378	378	2 taxes and liens shall include any and all liens transmitted to
379	379	3 the tax collecting official by counties and municipal
380	380	4 corporations in accordance with Sections 11-40-35, 11-53B-16,
381	381	5 and 11-67-66.
382	382	6 "§40-10-1.
383	383	7 "(a) The probate court of each county may order the
384	384	8 sale of lands therein for the payment of taxes assessed on the
385	385	9 lands, or against the owners of the lands, when the tax
386	386	10 collector shall report to the court that he or she or the
387	387	11 holder of a tax lien issued pursuant to Acts 1995, No. 95-408
388	388	12 was unable to collect the taxes assessed against the land, or
389	389	13 any mineral, timber or water right or special right, or
390	390	14 easement therein, or the owner thereof, without a sale of the
391	391	15 land.
392	392	16 "(b) For purposes of any enforcement proceedings
393	393	17 under this chapter, the taxes due shall include any and all
394	394	18 liens of a municipality for housing and building code
395	395	19 violations and enforcement actions which liens are transmitted
396	396	20 to the tax collecting official in accordance with Title 11.
397	397	21 "§40-10-18.
398	398	22 "(a) If no person shall bid for any real estate
399	399	23 offered at such sale an amount sufficient to pay the sum
400	400	24 greater than the minimum bid specified in the decree of sale,
401	401	25 and the costs and expenses subsequently accruing, and no
402	402	26 minimum bid is tendered by a local government or a local land
403	403	27 bank authority, the judge of probate shall bid in such real
404	404	Page 15 1 estate for the state at a price not exceeding the sum
405	405	2 specified in such decree and such subsequently accruing cost
406	406	3 and expenses the minimum bid. In no event shall the judge of
407	407	4 probate bid in for the state less than the entire amount of
408	408	5 real estate included in any assessment.
409	409	6 "(b) If no person shall bid for any real estate
410	410	7 offered at such sale, an amount greater than the minimum bid
411	411	8 specified in the degree of sale, and the costs and expenses
412	412	9 subsequently accruing, a local government or local land bank
413	413	10 authority in which the real estate is located may tender a bid
414	414	11 for the minimum amount which bid shall be accepted by the
415	415	12 judge of probate, and the successful bidder shall be the
416	416	13 purchaser at the sale. The tender of the minimum bid in
417	417	14 accordance with this subsection shall be for cash, with a
418	418	15 credit for any and all amount already due and owing the local
419	419	16 governmental entity submitting the bid.
420	420	17 "§40-10-29.
421	421	18 "(a) After the expiration of three years from the
422	422	19 date of the sale of any real estate for taxes, the judge of
423	423	20 probate then in office must execute and deliver to the
424	424	21 purchaser, other than the state, or person to whom the
425	425	22 certificate of purchase has been assigned, upon the return of
426	426	23 the certificate, proof that all ad valorem taxes have been
427	427	24 paid, and payment of a fee of five dollars ($5) to the judge
428	428	25 of probate, a deed to each lot or parcel of real estate sold
429	429	26 to the purchaser and remaining unredeemed, including therein,
430	430	27 if desired by the purchaser, any number of parcels, or lots
431	431	Page 16 1 purchased by him or her at such sale; and such deed shall
432	432	2 convey to and vest in the grantee all the right, title,
433	433	3 interest, and estate of the person whose duty it was to pay
434	434	4 the taxes on such real estate and the lien and claim of the
435	435	5 state and county thereto, but it shall not convey the right,
436	436	6 title, or interest of any reversioner or remainderman therein.
437	437	7 "(b) After the expiration of 90 days from the sale
438	438	8 for the minimum bid to a local government or local land bank
439	439	9 authority, the judge of probate then in office shall execute
440	440	10 and deliver to the entity a deed to the real estate sold to
441	441	11 the entity and the deed shall convey to and vest in the
442	442	12 grantee all of the right, title, and interest of any and all
443	443	13 persons having an interest in the property as of the date of
444	444	14 the sale.
445	445	15 "§40-10-120.
446	446	16 "(a) Except as otherwise provided in this
447	447	17 subsection, real Real estate which hereafter may be sold for
448	448	18 taxes and purchased by the state may be redeemed at any time
449	449	19 before the title passes out of the state or, if purchased by
450	450	20 any other purchaser, may be redeemed at any time within three
451	451	21 years from the date of the sale by the owner, his or her
452	452	22 heirs, or personal representatives, or by any mortgagee or
453	453	23 purchaser of such lands, or any part thereof, or by any person
454	454	24 having an interest therein, or in any part thereof, legal or
455	455	25 equitable, in severalty or as tenant in common, including a
456	456	26 judgment creditor or other creditor having a lien thereon, or
457	457	27 on any part thereof; and an infant or insane person entitled
458	458	Page 17 1 to redeem at any time before the expiration of three years
459	459	2 from the sale may redeem at any time within one year after the
460	460	3 removal of the disability; and such redemption may be of any
461	461	4 part of the lands so sold, which includes the whole of the
462	462	5 interest of the redemptioner. If the mortgage or other
463	463	6 instrument creating a lien under which a party seeks to redeem
464	464	7 is duly recorded at the time of the tax sale, the party shall,
465	465	8 in addition to the time herein specified, have the right to
466	466	9 redeem the real estate sold, or any portion thereof covered by
467	467	10 his or her mortgage or lien, at any time within one year from
468	468	11 the date of written notice from the purchaser of his or her
469	469	12 purchase of the lands at tax sale served upon such party, and
470	470	13 notice served upon either the original mortgagees or
471	471	14 lienholders or their transferee of record, or their heirs,
472	472	15 personal representatives, or assigns shall be sufficient
473	473	16 notice.
474	474	17 "(1) When any real property is sold for taxes and
475	475	18 has also been sold in one or more prior sales for taxes
476	476	19 without redemption from such prior tax sales, the three-year
477	477	20 period for redemption shall be measured from the date of the
478	478	21 earliest sale of the real property for taxes.
479	479	22 "(2) When any real property is sold for taxes and
480	480	23 the minimum bid specified in the decree of sale, and the costs
481	481	24 and expenses subsequently accruing includes amounts
482	482	25 attributable to one or more housing and building code liens or
483	483	26 nuisance abatement liens and the property is not lawfully
484	484	Page 18 1 occupied as a residence, the period for redemption shall be
485	485	2 one year from the date of the sale.
486	486	3 "(3) When any real property is sold to a local
487	487	4 government or local land bank in accordance with Section
488	488	5 40-10-18 for the minimum bid specified in the decree of sale
489	489	6 and the costs and expenses subsequently accruing, the period
490	490	7 for redemption shall be one year from the date of the sale.
491	491	8 "(b) If any real property has been sold for taxes
492	492	9 and is subject to redemption from the sale as set forth in
493	493	10 subsection (a) and has also been sold in one or more
494	494	11 subsequent sales for taxes, then any party entitled to redeem
495	495	12 such sale for taxes may redeem such sale if the redemptioner
496	496	13 simultaneously redeems his or her sale and all subsequent
497	497	14 sales. In the event of a redemption of successive sales, the
498	498	15 redemption amount shall be ascertained by applying the
499	499	16 provisions of Sections 40-10-121 and 40-10-122. Redemption
500	500	17 amounts computed pursuant to Section 40-10-121 shall be paid
501	501	18 as stated therein. Redemption amounts computed pursuant to
502	502	19 Section 40-10-122 shall be paid as stated therein if the
503	503	20 purchaser had the right to redeem pursuant to subsection (a)
504	504	21 or was the owner of the then current tax certificate or tax
505	505	22 title. Otherwise, those funds shall be disposed of as set
506	506	23 forth in Section 40-10-28 and paid to such purchaser or his or
507	507	24 her assignee only as set forth in Section 40-10-28, with the
508	508	25 time limits for such application computed utilizing the sale
509	509	26 date when the purchaser's interest was sold for taxes.
510	510	27 "§40-10-184.
511	511	Page 19 1 "(a) On the day and time designated for a tax lien
512	512	2 auction, the tax collecting official shall proceed to auction
513	513	3 all tax liens described in the tax lien auction list compiled
514	514	4 as provided in Section 40-10-183, except those for which the
515	515	5 taxes, penalties, interest, fees, and costs thereon have been
516	516	6 paid. Any tax lien unsold after a tax lien auction shall be
517	517	7 retained by the county for future auction or sale as provided
518	518	8 in this article.
519	519	9 "(b) A tax lien shall be sold at auction pursuant to
520	520	10 this article to the person who pays all taxes, interest,
521	521	11 penalties, fees, and costs due on the property, including an
522	522	12 origination cost of twenty dollars ($20) as of the date of
523	523	13 auction and a twenty dollar ($20) auction fee, and who, in
524	524	14 addition, bids the lowest interest rate on the amount required
525	525	15 to be paid to redeem the property from the sale. The beginning
526	526	16 interest rate bid shall not exceed a rate of 12 percent and
527	527	17 additional bids may be made at a rate less than the
528	528	18 immediately preceding bid. If the interest rate bid for the
529	529	19 property reaches 0.00 percent and a bid is submitted by the
530	530	20 local government or local land bank authority in which the
531	531	21 property is located, the bid shall be accepted as the
532	532	22 successful bid. The tender of the bid shall be for cash, with
533	533	23 a credit for any and all amounts already due and payable to
534	534	24 the local governmental entity submitting the bid. If no bid is
535	535	25 submitted and more than one bidder remains, the tax collecting
536	536	26 official shall draw lots to determine the winning bidder for
537	537	27 the property.
538	538	Page 20 1 "(c) The sale of a tax lien does not extinguish any
539	539	2 deed restriction, deed covenant, or easement on or appurtenant
540	540	3 to the parcel. A tax lien offered for auction or sale shall be
541	541	4 identified by a uniform parcel number and a legal
542	542	5 description."
543	543	6 Section 4. This act shall become effective
544	544	7 immediately following its passage and approval by the
545	545	8 Governor, or its otherwise becoming law.
546	546	Page 21