HB6 Summary

• Amends Sections 40-10-121 and 40-10-122 of the Alabama Code relating to interest rates on property sold for unpaid taxes and redemption procedures.

• Changes the interest rate on property sold for nonpayment of taxes from a fixed 12 percent to the residential mortgage rate published by the Federal Home Loan Mortgage Corporation (or its successor) for the month preceding the redemption application filing.

• Applies the new variable interest rate to both the original sale amount and delinquent taxes owed, as well as to insurance premiums and improvement values for property in urban renewal areas and residential structures.

• Establishes procedures for redemptioners to dispute property improvement values claimed by purchasers, including a referee and umpire dispute resolution process with 10-day timelines.

• Becomes effective for all tax years beginning on or after October 1, 2011.