HB309 Summary

• Reduces the interest rate on defective tax sales and property redemptions from 12 percent per annum to the rate allowed on money judgments under Section 8-8-10, currently 7.5 percent.

• Applies the new interest rate to six sections of Alabama Code governing tax sale disputes, redemptions, and related court actions involving property sold for taxes.

• Interest rate changes apply when: a tax sale is defective or invalid, a party redeems property from a tax sale, or courts calculate damages in tax sale litigation.

• The rate will automatically adjust in the future if the money judgment rate under Section 8-8-10 changes, rather than remaining fixed at a specific percentage.

• Becomes effective on the first day of the third month following passage and Governor approval.