HB270 Enrolled is a legislative bill that amends the Code of Alabama 1975, specifically addressing the distribution of excess funds from tax sales and the foreclosure of tax liens. The bill modifies the distribution process of excess funds from tax sales, allowing those who have redeemed the property to claim such funds within a three-year period before they revert to the county's general fund. It also introduces a voucher system for redemption and extends the claim period for excess funds from tax sales in 2014, 2015, and 2016 to 12, 11, and 10 years, respectively. The bill outlines the foreclosure process for tax lien certificate holders, setting a time frame of three to 10 years after the tax lien auction or sale to initiate foreclosure, and requires all due taxes, interest, penalties, fees, and costs to be paid before filing an action. It mandates sending notice of intent to file a foreclosure action to property owners and holders of outstanding mortgages, judgments, or liens.

Furthermore, the bill expands the notification requirements for tax lien foreclosure actions to include a broader range of interested parties and details the information that must be included in the notice. It requires an affidavit from the tax lien certificate holder detailing the notified parties and the records searched. The bill also provides for the appointment of a guardian ad litem for certain defendants, outlines the reimbursement procedure for those who have paid taxes on the property, and specifies conditions for the court to enter judgment in a tax lien foreclosure action. It clarifies that foreclosure does not extinguish certain rights and easements and modifies the redemption process and public auction procedures. The bill sets the minimum bid at tax lien sales, outlines the expiration of tax lien certificates, and is set to become effective on October 1, 2024, applying to all tax liens without a final judgment in a foreclosure and quiet title action by that date. The bill was passed by the House on April 2, 2024, and by the Senate on April 25, 2024.

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