SB261 Summary

• Revises Alabama's tax lien sale procedures to authorize counties to conduct public auctions where tax liens are awarded to bidders offering the lowest interest rate rather than highest bid amount.

• Establishes a tax lien auction process held between March 1 and June 15 annually with mandatory notice to delinquent taxpayers at least seven days prior via mail and one of three additional methods (newspaper, website, or courthouse posting).

• Creates tax lien certificates issued by tax collecting officials to purchasers for a $5 fee, bearing interest at the rate bid by the purchaser (not exceeding 12 percent), and allowing assignment and transfer with a $5 transfer fee.

• Allows tax lien certificate holders to foreclose redemption rights through circuit court action between three and 10 years after auction if property is not redeemed, with required notice to property owners and mortgage holders 30-180 days before filing.

• Permits unsold tax liens to be sold at private sale within 45 days after auction for no less than all taxes, interest, penalties, costs, and fees at rates not exceeding 12 percent.