SB286 Summary

• Reduces interest rate on tax sale litigation and property redemptions from 12 percent to 7.5 percent for taxes delinquent on or after January 1, 2017.

• Applies the 7.5 percent interest rate to actions related to defective tax sale proceedings, invalid tax sales, and claims by original owners against tax sale purchasers.

• Maintains the 12 percent interest rate for tax sales occurring prior to January 1, 2017, with the reduced 7.5 percent rate applying prospectively to all subsequent tax sales and redemptions.

• Modifies sections 40-10-75, 40-10-76, 40-10-77, 40-10-83, 40-10-121, and 40-10-122 of the Alabama Code to implement the interest rate reduction uniformly across tax sale statutes.

• Becomes effective October 1, 2016, for actions related to taxes delinquent on or after January 1, 2017.