Section 40-10-134 - [Effective 10/1/2024] Manner of sale of land bid in by state(a) Commencing January 1, 2025, and subject to subsections (b) through (f), the Land Commissioner may sell lands by online public auction when those lands have been sold for taxes and bought in for the State of Alabama; have not been redeemed or sold by the state; and a period of five years has elapsed from the date of sale to the state. The sale of the property by online public auction shall be subject to the provisions of subsections (b) through (e) and shall be for the best price obtainable, irrespective of the amount of taxes and interest due.(b) When selling lands by public auction, the Land Commissioner shall contract with a nationally recognized auction company to sell at public auction the state's tax interest on any lands sold for nonpayment of taxes and bought in for the State of Alabama which meet the following requirements:(1) The property has been bid in for the state for at least five years.(2) The land has not been redeemed.(3) The state has not sold or assigned its tax interest in the land.(4) There is no active price quote on the land. The term "active price quote" means a statement that has been issued to an applicant which provides the amount necessary to purchase the state's tax interest in the land, and the applicant is still within the period of time stated in the price quote to accept and submit payment.(c) The contract with the auction company shall provide that the fee to the auction company shall be a contingency fee with all expenses borne by the company. The expenses shall include, but are not limited to, the costs of advertising as provided in subsection (e). The contingency fee shall not exceed 15 percent of the total amount of each successful bid at auction and shall be added as a premium to the total amount of each successful bid at auction.(d) When the Land Commissioner contracts with an auction company pursuant to subsection (b), he or she shall notify the owners of record, or persons having interest in the lands, that the state's tax lien interest on the property will be sold at auction and the date upon which this is scheduled to occur. Notification shall be achieved by means of publication on the Department of Revenue's website for a period of not less than 30 days prior to the auction. The publication shall include the date and time of the auction and a listing of the properties that are scheduled to be auctioned. Due to certain factors including, but not limited to, sales, redemptions, cancellations, or open price quotes occurring between the time of initial publication and the time of auction, the list may be amended as necessary throughout the publication period. Amending the list for these reasons shall not restart the 30-day publication period, nor shall it invalidate the actions of the Land Commissioner in complying with this subsection.(e) The auction company, as part of its contracted responsibilities, shall advertise the auction. In its advertisement, the auction company shall make a prominent statement that purchasers will not receive clear title to any land sold at auction, and further, that they are bidding on the tax lien interest on lands held by the state for nonpayment of taxes which may have additional liens. The auction company and its agents shall not be liable for damages resulting from conducting the auction.(f) Any provision of law to the contrary notwithstanding, the Department of Revenue shall distribute the funds derived from this section as follows:(1) For properties in which the current assessment includes state, county, and municipal taxes, the total amount received shall be divided into three equal shares. One share shall be disbursed to the State General Fund, one share disbursed to the county general fund, and one share disbursed to the municipality.(2) For properties in which the current assessment includes only state and county taxes, the total amount received shall be divided into two equal shares. One share shall be disbursed to the State General Fund, and one share disbursed to the county general fund.Ala. Code § 40-10-134 (1975)
Amended by Act 2024-83,§ 1, eff. 10/1/2024.Acts 1935, No. 194, p. 256; Code 1940, T. 51, §317; Acts 1995, No. 95-408, p. 864, §2.This section is set out more than once due to postponed, multiple, or conflicting amendments.