Payment Questions
- What is the tax sale?
- What happens if I don't pay my taxes?
- Can I purchase deliquent tax property from the state?
- My property was sold in the tax sale.
When a delinquent taxpayer refuses to pay his/her property taxes on or after January 1st, the Revenue
Commissioner must begin the process of preparing to sell the property to satisfy the taxes due.
After all attempts to notify the property owner of delinquent tax are exhausted, the property is then
offered for sale at public auction in the courthouse on the last Thursday in May.
By purchasing a parcel of land in a tax sale, you are placing a "Lien" on the property redeemable by the
property owner through this office for up to three years from the date of the sale. Upon redemption, the
property owner is required to pay the buyer the initial delinquent tax and cost plus any additional property
tax the buyer has paid up to the three year redemption period. The property owner is required to pay the
buyer interest on the sale amount. The interest rate on tax sale property is 12% annually.
After the three year redemption period, the owner of the property is no longer able to redeem his/her
property through this office and must communicate with the buyer directly.
Property tax is due each October 1 and is delinquent after December 31 of each year. All past due accounts
receive a $5.00 penalty and begin accruing interest at a rate of 12% annually, compounded daily as of
January 1 of each year.
Alabama State Law requires that property owners with unpaid tax account be notified by certified mail once
in February and again in March.
$5.00 Citation fee added March 1
$5.00 Citation fee added March 7
$5.00 Citation fee added day of the tax sale
Alabama State Tax Law require that all delinquent tax accounts are advertised in a local
publication (newspaper)a total of (3)three times in March and (3)three times in May.
The cost of advertisement and certified mailings are added to unpaid property tax accounts in addition
to the citation fees, penalty and interest.
All delinquent property tax accounts are subject to auction if left unpaid after the last Thursday of
May (date of tax sale)
Before a delinquent account can be payed, an accurate calculation of penalties and interest must be
added to the base tax amount. To obtain a payment amount for a delinquent tax account, please contact
our Collections Department at 574-8545.
When tax sale properties are not auctioned to individual bidders, the Tax Sale Certificate is transferred
to the State of Alabama Department of Revenue, Property Tax Division in Montgomery. The property is
available for purchase from the state by making application. Below are the rules and procedures which
must be followed in order to purchase these delinquent properties.
LISTING OF PROPERTIES
The Alabama Department of Revenue maintains a list of all properties available for purchase . You may
download a copy of this list on their website; www.revenue.alabama.gov nce you have located the site,
choose the Divisions and Services heading from the top menu bar. Scroll down and select Property Tax.
You will be then be automatically directed to the Property Tax Division page. From this page ou may select
the county in which you are interested in to view and print delinquent property listings,
application procedures and the ADV:LD-2 application form. Directions on how to read the transcript
of tax delinquent properties is included on the second page. ADOBE ACROBAT is required to read and download
the information.
REDEMPTION
The State maintains the same three year anniversary date from the date of the tax sale in which a
property owner may redeem his/her property and release the tax lien. During this three year time period,
if an individual wishes to purchase a property from the states delinquent list, he/she will receive a
"Sale Certificate" from the Revenue Commission of the county in which the property is located. If the
three year anniversary date has passed, a "Tax Deed" will be issued by the State Department of Revenue.
State issued "Tax Deeds" does not warrant a clear title to the property. The former owner, or any
persons claiming through or under the former owner, has liberal and extensive rights to redeem and
recover the property from the tax deed holder. It is advisable that the potential purchaser throughly
investigate every aspect of the property before making a purchase. The State of Alabama gives no legal,
financial, or professional advise as it pertains to properties held by the state and recommends a competent
attorney be consulted in any case where legal questions or concerns arise. The Property Tax Division
will not be responsible for any action outside of the division's control.
RULES
Individuals, Companies, or any party affiliated with the applicant is limited to 20 active applications at
any one time in the land sale system. Applicants or an affiliated party who maintain the purchase of a
minimum of 10% of properties in which a quote has been issued, may have their applications accepted and
processed in a reasonable quantity in access of 20. Applicants or affiliated parties who make purchases
but do not maintain the minimum purchase of 10% of the properties quoted, will be limited to the 20
active applications policy.As the applicant or affiliated party receive notice that one or more of the
properties applied for has become unavailable because of (redemption by property owner, or other reasons
deemed acceptable by the Property Tax Division)they will be allowed to submit another application as
replacement for those which have become unavailable.
An applicant or affiliated party who makes NO PURCHASES after been issued forty consecutive price
quotes will forfeit the privilege of having applications accepted or processed for a one year period.
All improvements to your property should be reported to the Revenue Commissioner's Office in a timely
manner. This can be done by providing our office with a description and value of improvement added.
You may report and improvement at any of our office locations. Improvements that are unreported may
result in back charges and penalty.
If your property has been sold for delinquent taxes, you now have a "lien" against your property.
This property tax lien will not effect your overall "credit score" but must be satisfied before the
property can be sold, used as collateral for a loan, transfer ownership, etc.
Since the property has been auctioned, it must now be redeemed. As the property owner, you are given a
period of three (3) years to redeem the property with this office. This is done through our Land Redemption
Department.
Since tax sale properties are charged daily interest, you may call or visit our Land Redemption
Department to obtain a "pay-off" price based on what date you plan to redeem the property.
You will be responsible to pay the buyer the initial delinquent tax and cost plus any additional
property tax the buyer has paid during the three year redemption period. You are also required to
pay the buyer interest on the sale amount. The interest rate on tax sale property is 12% annually
compounded daily.
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Marilyn E. Wood
Revenue Commissioner