Alabama Tax Sales 2020 Changes

[Denise Evans]

Alabama tax sales law has changed dramatically.  SB257, which was signed into law, changes interest rates to 8%.  It might or might not be retroactive, depending on who you ask.  Procedures for improvement payments upon redemption have changed. Those might or might not be retroactive, depending on who you ask.  

Mobile County will have an online lien auction, while Shelby, Baldwin, and a few other counties will have on-site lien auctions. Most counties will still do certificate auctions rather than lien auctions.  

A new appeals court decision means tax deed owners can sue former owner for the reasonable rental value of the property as money damages, even if the former owner redeems.  

A new Jefferson County circuit court decision says all state inventory properties more than 6 years old are voidable by taxpayer, but I don't expect that decision to gain any traction with other courts.  It's a rogue decision, in my opinion.

There are other important changes. This is NOT a year to take things for granted, including what you THINK you know about Alabama tax sale investing.  Some things are good for investors, some things make investing trickier. It's a mixed bag.