The bill amends the Code of Alabama 1975 to enhance the authority of Class 2 municipalities regarding the management of properties with outstanding tax liens. It revises the definition of "municipal code liens" to clarify that these liens arise from non-payment of fines, penalties, or costs related to housing and building code enforcement. New provisions allow Class 2 municipalities to enter properties with tax lien certificates to perform necessary repairs, with the costs of these repairs excluded from the property's redemption price. Additionally, the bill outlines a process for the sale of unsold tax lien certificates, enabling municipalities to acquire them at the best available price after a specified period.

The bill also modifies existing legal language by removing certain definitions and conditions related to "interested parties" and the establishment of municipal code liens. It allows municipalities to determine reasonable repair costs through the court if a public auction demand is made. Furthermore, if tax liens remain unsold after three auctions, municipalities can acquire them without paying all due taxes prior to foreclosure actions. The pre-filing notice requirements for initiating foreclosure actions are also adjusted. The bill is set to take effect on October 1, 2025.

Statutes affected:
Introduced: 11-40-62, 40-10-184, 40-10-198, 40-10-199
Engrossed: 40-10-198, 40-10-199
Enrolled: 40-10-198, 40-10-199