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Pending Tax Sales Bills in Alabama Legislature

Posted by 15789465 on

Three bills that affect tax sale investors are pending in the Alabama legislature.  Two might pass. One is hopefully only a boogie man, mean to frighten the big out-of-state investors. The two that might pass are SB218 and SB362. SB218 would eliminate interest accrual on excess bids, effective January 1, 2016. In other words, if a property owner owes $1,000 in taxes, and the auction bids goes up to $10,000, then only $1,000 of the bill will earn interest. The other $9,000 will not earn any interest as all. Sponsors of this bill are Senators Pittman (Baldwin County), Holley (Pike, Coffee, Dale, Covington), Whatley (Tallapossa, Russell, Lee), Sanford (Madison), McClendon (Talladega, St. Clair and Shelby), Singleton (Tuscaloosa, Sumter, Pickens, Marengo, Clarke, Choctaw, Greene and Hale) and Ross (Montgomery). SB362 would reduce the redemption interest rate from 12% to 7.5% effective January 1, 2016. It was sponsored by Senator Pittman (Baldwin County) The deadliest of the three is SB53, sponsored by Senators Pittman (Baldwin county) and Whatley (Tallapoosa, Russell and Lee counties), would reduce redemption interest rate to 1% per year, retroactively! I hope the retroactive interest rate reduction to 1% per year is a mere political ploy, meant to scare the "big investors" and keep them out of Alabama, at least this year. If it passes, it will be the death of tax sale investing in this state.

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6 comments

  • […] Denise Evans mentioned HERE back on May 3, 2015, there are three bills pending in the Alabama Legislature that could […]

    Alabama SB 362 Proposes to Reduce Statutory Interest from 12% to 7.5%! | Alabama Tax Properties on
  • SB53 should not be legal to enforce without the state / counties willing to buy back all that has been purchased, because it was sold as a certain return on your money and then you change it to nothing, I would like to see how the Senators would fill if we took all their gains from their retirement plans, Retro since they started them and make it a max of 1% a year.
    I agree with Micheal this would bankrupt the system and close down tax sales for everyone.
    But if the Senators are willing to do what I said about their retirement accounts then I guess I could deal , BUT the counties and State Can’t,

    Blessings, Jeff

    Jeff on
  • Thanks, Tom, I guess I had dyslexic fingers as I typed last night. Yes, the effective date is 2016, not 2106. I’ve edited the post and made the correction.

    Denise L. Evans on
  • Good point, Michael!

    Denise L. Evans on
  • Denise, I’m fairly sure you meant effective date January 1, 2016, not 2106, but you stated it twice in your post. Also Singleton represents part of Bibb County too, (which happens to be the part I live in).
    Tom

    Tom Owings on

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