HB143 Summary

• Amends Section 40-10-134 of the Code of Alabama 1975 to change the sale process for state-owned lands that were purchased at tax sales and not redeemed within five years.

• Requires the Land Commissioner to contract with a nationally recognized auction company to conduct public auctions of the state's tax lien interest on unredeemed properties, effective January 1, 2019, and every fifth year thereafter.

• Mandates that auction companies provide at least 30 days of advance notice through publication on the Department of Revenue website, include disclaimers that purchasers will not receive clear title and are bidding on tax liens only, and charge contingency fees with all expenses borne by the company.

• Establishes that auction proceeds are distributed equally among state, county, and municipal governments based on their respective tax millages on the properties sold (three-way split or two-way split if no municipal millage applies).

• Authorizes the Department of Revenue to promulgate rules necessary to implement and administer the auction process under the Alabama Administrative Procedure Act.