Sale of tax-delinquent land; Land Commissioner authorized to contract with online auction to sell certain lands
Impact
The passage of HB 196 is set to significantly alter how tax-delinquent properties are handled in Alabama. By establishing a clear path for the sale of such properties, the bill is expected to lead to more efficient use of state resources and provide much-needed revenue. The funds generated from these sales are designated to be shared equally among the State General Fund, county general funds, and municipalities, which directly addresses local budgetary needs. Overall, the legislation aims to enhance local governance and provide financial assistance in a manner that has not been previously available.
Summary
House Bill 196 seeks to amend the existing laws concerning the sale of tax-delinquent land by the Land Commissioner in Alabama. The bill authorizes the Land Commissioner to sell state-owned land that has been bid in for tax purposes at public auction, provided certain conditions are met. Specifically, the bill allows for both private sales and public auctions of these properties, aiming to offer a mechanism for removing tax-delinquent lands from state ownership and reintroducing them into productive use. This initiative is expected to provide a new avenue for municipalities and counties to acquire properties in their jurisdiction which have been long-standing liabilities for the state.
Sentiment
Overall, the sentiment surrounding HB 196 appears to be broadly positive, with support from various stakeholders who view it as a practical solution to the ongoing issue of tax-delinquent properties in Alabama. Proponents argue that the provisions could stimulate local economies by facilitating property ownership and encouraging rehabilitation efforts for neglected lands. However, there is some apprehension regarding the clarity of titles and potential complications arising from existing liens, which have raised questions among some community members and local government officials about the implications for future land use.
Contention
The notable points of contention around HB 196 stem primarily from the perceived risks involved in the auction process. Critics are concerned about the lack of clear title for properties sold under the provisions of this bill, which could lead to disputes or difficulties in property ownership post-sale. Furthermore, there are concerns related to how the auction process will be managed, especially regarding transparency and fairness in ensuring the best bids are secured. While supporters believe that the land commissioner should have this authority as a means to mitigate issues with delinquent properties, the debates highlight an ongoing tension between efficient governance and the need for robust protections for prospective buyers.
To Amend The Law Concerning Management And Sale Of Tax Delinquent Lands By The Commissioner Of State Lands; And To Standardize The Use Of The Term "parcel".
Tax delinquent properties, provides for distribution of excess funds from certain tax sale, actions to foreclose and quiet title, public auction demanded and distribution of proceeds, distribution of surplus proceeds, limited application of act.
Relating to land bank authorities; to amend Sections 24-9-4, 24-9-6, 24-9-10, 40-1-3, 40-10-1, 40-10-18, 40-10-29, 40-10-120, 40-10-184, and to add Sections 29-4-11 and 29-4-12 to the Code of Alabama 1975; to provide for the creation of multijurisdictional local land bank authorities; further authorize the acquisition of tax delinquent property and tax liens by local land bank authorities; further provide for the exemption of land bank authority property from taxes and fees; provide for the allocation of a portion of the ad valorem taxes on property conveyed by a land bank authority to the authority; further provide for the conveyance of land bank authority property; and authorize the Governor to create a local land bank authority in the event of a state of emergency.
To Enable The Commissioner Of State Lands To Conduct Certain Business Online; And To Amend The Procedure The Commissioner Of State Lands Must Follow In Selling Certain Property.
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
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
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.
An Act Concerning The Department Of Administrative Services And The Disposition Of Surplus State Property, Short Term Emergency Leases, The Definition Of Executive Session And Duplicative Statements Of Financial Interest.