AL SB177

Amends Section 40-10-28 of the Alabama Code to clarify procedures for handling excess funds from tax sale foreclosures on real estate.

Excess funds must be held in escrow in the county treasury and can only be released when the rightful owner makes a proper request under three specific circumstances: requesting application to redemption during the three-year redemption period, waiving redemption rights via affidavit, or requesting payment after the redemption period expires within 10 years of the tax sale.

Defines "rightful owner" as the original taxpayer (if property was not sold), the agent or legal representative of the original taxpayer, or a subsequent purchaser who bought from the original taxpayer after the tax assessment date.

Excess funds unclaimed for three years are transferred to the county general fund, but the county commission may still order payment to the rightful owner within 10 years of the transfer; funds become permanent county property after 10 years if not claimed.

Effective date is the first day of the third month following passage and gubernatorial approval.