The bill HB270 amends Sections 40-10-28 and 40-10-197 of the Code of Alabama 1975, focusing on the distribution of excess funds from tax sales and the procedures for tax lien foreclosure actions. Key insertions include provisions for distributing excess funds to individuals or entities that have redeemed properties, with a requirement that these funds be held for three years before claims can be made under specific conditions. The bill also modifies the timeline for tax lien purchasers to initiate foreclosure actions, allowing them to do so within a specified period after the tax sale, and introduces new notification requirements for property owners and interested parties. Additionally, it expands the list of individuals who must be notified about foreclosure actions and mandates that the holder of tax lien certificates file an affidavit detailing the notification process.

Further amendments include changes to the requirements for filing a complaint in tax lien foreclosure actions, such as notifying all parties entitled to redeem the property and appointing a guardian ad litem for minors or incapacitated individuals. The bill also clarifies that the foreclosure of the right to redeem does not extinguish easements or other covenants related to the property. It establishes a new auction process for tax lien certificates, determining the minimum bid by the court and ensuring that auction results are reported for confirmation. The timeline for initiating foreclosure actions is also modified, stipulating that if a tax lien is not redeemed and foreclosure is not initiated within ten years, the lien will expire. The act is set to take effect on October 1, 2024, and will apply to all tax liens without a final judgment rendered by that date.

Statutes affected:
Introduced: 40-10-28, 40-10-197
Engrossed: 40-10-28, 40-10-197
Enrolled: 40-10-28, 40-10-197