AL
The state runs more than one kind of sale, so the outcome depends on which sale a parcel goes through.
Sale type
Hybrid (lien and deed)
Redemption
36 mo
Interest / penalty
Bid-down · 12%
Sale timing
Annual
Rules in plain English
Sale type
Hybrid (lien and deed)
The state runs more than one kind of sale, so the outcome depends on which sale a parcel goes through.
Ala. Code 40-10-180
“The tax collecting official for each county shall have the sole authority to decide whether his or her county shall utilize the sale of a tax lien or the sale of property to collect delinquent property taxes”official source ↗
Redemption period
36 mo
36 months (3 years) from the sale date
Ala. Code 40-10-120
“may be redeemed at any time within three years from the date of the sale by the owner”official source ↗
Interest / penalty
Bid-down · 12%
Bidding starts at a maximum rate of 12% per year and goes down.
Ala. Code 40-10-184; Ala. Code 40-10-122
“The beginning interest rate bid shall not exceed a rate of 12 percent and additional bids may be made at a rate less than the immediately preceding bid.”official source ↗
Bid method
Bid down the interest rate
Bidders compete by offering the lowest interest rate rather than the highest price.
Ala. Code 40-10-184
“bids the lowest interest rate on the amount required to be paid to redeem the property from the sale”official source ↗
Sale schedule
Annual
Sales are held about once a year.
Ala. Code 40-10-181(3)
“held no earlier than March 1 or later than June 15 of the current ad valorem tax year”official source ↗
Redemption detail
- Base period
- 36 months (3 years)
- Starts from
- the sale date
- Notice days
- Not documented
- Exceptions
- Not documented
Bidder process
- 01Confirm the remedy the county's tax collecting official chose for the year (sale of a tax lien or sale of property); it applies to all real property in the county for that year (40-10-180(b), (c))
- 02Find the tax lien auction list, which must be prepared and maintained at least 30 days before the auction (40-10-183)
- 03Holders of existing tax lien certificates may exercise a first right to purchase the lien on a subsequent delinquency between five and 30 days prior to the auction date (40-10-191(a))
- 04Bid at the public auction for the sale and transfer of delinquent tax liens; the lien is sold to the person who pays all taxes, interest, penalties, and fees due, a $45 administrative fee, and bids the lowest interest rate on the redemption amount, starting at no more than 12 percent (40-10-182(b)(1), 40-10-184(b))
- 05Pay the purchase price: not later than one hour before close of business on the auction date, or, for an online auction, by close of business two days after the auction (40-10-186(b))
- 06Receive a tax lien certificate from the tax collecting official upon receipt of the purchase price (40-10-187(a))
- 07If the lien is not redeemed, foreclose the right to redeem and quiet title in circuit court not less than four and not more than ten years after the auction; the certificate expires if no action is brought within ten years (40-10-197(a), (j))
- Registration
- Not documented
- Registration mode
- Not documented
- Registration deadline
- Not documented
- Registration fee
- Not documented
- Deposit required
- Not documented
- Deposit amount
- Not documented
- Deposit percent
- Not documented
- Deposit refundable
- Not documented
- Sale format
- hybrid
- Payment deadline
- in person: not later than one hour before close of business on the date of the auction or sale; online: not later than the close of business two days following the date of the auction (40-10-186(b))
- Payment methods
- unknown
- Residency required
- Not documented
- Payment acceptable to the tax collecting official (40-10-186(b): form of payment is that 'acceptable to the tax collecting official')
- Tax assessing/collecting officials, judges, clerks, and their employees may not knowingly have a direct or indirect financial interest in the purchase of a tax lien sold for delinquent taxes in their jurisdiction (40-10-200); a sale in violation is void
Ala. Code 40-10-182(b)(1)
“If the sale of a tax lien is chosen as the method to collect delinquent property taxes, the tax collecting official of any county shall conduct a public auction for the sale and transfer of delinquent tax liens between the hours of 8:30 a.m. and 4:00 p.m. on the auction date.”official source ↗
Ala. Code 40-10-184(b)(1)-(2)
“A tax lien shall be sold at auction pursuant to this article to the person who: (i) pays all taxes due ... (ii) pays an administrative fee of forty-five dollars ($45) ... and (iii) bids the lowest interest rate on the amount required to be paid to redeem the property from the sale. (2) The beginning interest rate bid shall not exceed a rate of 12 percent and additional bids may be made at a rate less than the immediately preceding bid.”official source ↗
Ala. Code 40-10-186(b)
“The purchase price for a tax lien shall be paid in a form acceptable to the tax collecting official not later than one hour before close of business on the date of the auction or sale or, if the auction is online, not later than the close of business two days following the date of the auction.”official source ↗
Ala. Code 40-10-187(a)
“The tax collecting official, upon receipt of the purchase price, shall make, execute, and deliver a tax lien certificate to each purchaser.”official source ↗
Ala. Code 40-10-201
“A tax collecting official may conduct a tax lien auction and sale online or in person in accordance with procedures established by the tax collecting official.”official source ↗
Ala. Code 40-10-180(b)
“The tax collecting official for each county shall have the sole authority to decide whether his or her county shall utilize the sale of a tax lien or the sale of property to collect delinquent property taxes and the method decided by the tax collecting official shall apply to all real property in that county for the year so decided.”official source ↗
Ala. Code 40-10-191(a)
“The holder of a tax lien certificate shall have the first right to purchase the tax lien relating to a subsequent delinquency on the property described in the tax lien certificate of the holder. A holder of the certificate shall exercise this right between five and 30 days prior to the tax lien auction date”official source ↗
Notes
Dual system: traditional sale-of-land (Code of Ala. 40-10-1 et seq.) and tax-lien auction (40-10-180 to 40-10-200). Auction window March 1-June 15 (40-10-182); beginning bid <=12% (40-10-184). Confirmed on official Code of Alabama host and Admin. Code r. 810-4-6. | Prose: hybrid | tax-lien auction: bid-down interest rate capped at 12%/yr; sale of land: 8%/yr redemption interest | 3 years | lowest interest rate bid (beginning bid not to exceed 12%) | March 1 - June 15