Alabama Tax Lien Certificates

Alabama tax lien certificates are sold at County Tax Sales during the month of May each year. The bidding begins at just the back taxes owed. The winning bidder at an Alabama tax sale is the bidder with the greatest bid.

The original owner has (3) three years to redeem his or her interest in the property. To redeem, the original owner must tender the amount the investor paid to purchase the Alabama tax lien certificate plus 12% per annum on the minimum and the overbid (see notes on bidding).

If the property is not redeemed within the (3) three year redemption period the purchaser of the Alabama tax lien certificate can apply for a tax deed to the property.

Tax Sale Type: Tax Lien Certificates (Sec. 40-10-19 New Window)

Contact: Tax Collector (Sec. 40-10-12 New Window)

Interest Rate: 12% per annum (Sec. 40-10-122 New Window)

Penalty Rate: Not Applicable Not Applicable

Bid Procedure: Premium Bid (Sec. 40-10-16 New Window)

Redemption Period: (3) three years (Sec. 40-10-29 New Window)

Law: Code of Alabama, Title 40, Chapter 10, "Sale of Land." New Window

Additional Notes:

Important. According to (Sec. 40-10-29 New Window and Sec. 40-10-30 New Window) after the 3 year redemption period has expired the judge of probate must execute and deliver to the purchaser...a deed to each lot or parcel of real estate sold to the purchaser and remaining unredeemed...and such deed conveyed upon expiration of the redemption period is not sufficient.

As the purchaser of an Alabama tax lien certificate you need to be aware that you will need to consult a legal professional for assistance with a quiet title action.

Left-over liens. Tax lien certificates not sold at the county level can be purchased from the Alabama State Commissioner of Revenue (Sec. 40-10-21 New Window and 40-10-132 New Window)

Alabama Department of Revenue
Property Tax Division
50 North Ripley
Montgomery, AL 36132
(334) 242-1170
Visit Alabama Department of Revenue Website

Caution on bidding. According to (Sec. 40-10-122 New Window) the bidder will only earn interest at the rate of 12 percent per annum on the amount of all taxes and any excess bid that is less than or equal to 15 percent of the market value as established by the county board of equalization which can be determined by reviewing the tax collector records.

Therefore, should the investor should enter into competitive bidding, he or she should never place a bid in excess of 15 percent of the value as determined by the county board of equalization.

Disposition of excess arising from sale. According to (Sec. 40-10-28 New Window) the proceeds or excess funds generated from the sale of real estate remaining after satisfying the amount of the decree of sale, costs, fees, subsequently accruing, are to be paid to the owner, or his agent, or to the person legally representing such owner, or into the county treasury.

Tax sale overages. According to (Sec. 40-10-28 New Window) if such tax sale proceeds, tax sale overages, or excess funds are not requested within three years after the sale of the property such money shall thereafter be treated as part of the general fund of the county. In addition, any time within 10 years after the funds have been deemed as part of the general fund of the county, on proof made by any person that he is the rightful owner of such excess money order the payment thereof to such owner, his heir or legal representative else such excess funds shall become the property of the county.

Agreement to locate property. According to (Sec. 35-12-93 New Window) "(a) An agreement by an owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of property that is presumed abandoned is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is 24 months after the date the property is paid or delivered to the Treasurer. ..." and "(e) An owner who has agreed to pay compensation that is unconscionable, may maintain an action to reduce the compensation to a conscionable amount. ..."

Presumption of abandonment. In addition (Sec. 35-12-72 New Window) says "(a) Property is presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular property: (13) Property held by a court, government, governmental subdivision, agency, or instrumentality, one year after the property becomes distributable. ..."

Join the Alabama Tax Sale Discussion

Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates Alabama.

Counties / Municipalities located in Alabama

The following is a list of counties located in the state of Alabama. Tax Lien Certificates for properties located in the following counties are sold at Alabama county tax sales.

Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below:

County/Municipality:  Population: 
Autauga County, AL  43,671
Baldwin County, AL  140,415
Barbour County, AL  29,038
Bibb County, AL  20,826
Blount County, AL  51,024
Bullock County, AL  11,714
Butler County, AL  21,399
Calhoun County, AL  112,249
Chambers County, AL  36,583
Cherokee County, AL  23,988
Chilton County, AL  39,593
Choctaw County, AL  15,922
Clarke County, AL  27,867
Clay County, AL  14,254
Cleburne County, AL  14,123
Coffee County, AL  43,615
Colbert County, AL  54,984
Conecuh County, AL  14,089
Coosa County, AL  12,202
Covington County, AL  37,631
Crenshaw County, AL  13,665
Cullman County, AL  77,483
Dale County, AL  49,129
Dallas County, AL  46,365
Dekalb County, AL  64,452
Elmore County, AL  65,874
Escambia County, AL  38,440
Etowah County, AL  103,459
Fayette County, AL  18,495
Franklin County, AL  31,223
Geneva County, AL  25,764
Greene County, AL  9,974
Hale County, AL  17,185
Henry County, AL  16,310
Houston County, AL  88,787
Jackson County, AL  53,926
Jefferson County, AL  662,047
Lamar County, AL  15,904
Lauderdale County, AL  87,966
Lawrence County, AL  34,803
Lee County, AL  115,092
Limestone County, AL  65,676
Lowndes County, AL  13,473
Macon County, AL  24,105
Madison County, AL  276,700
Marengo County, AL  22,539
Marion County, AL  31,214
Marshall County, AL  82,231
Mobile County, AL  399,843
Monroe County, AL  24,324
Montgomery County, AL  223,510
Morgan County, AL  111,064
Perry County, AL  11,861
Pickens County, AL  20,949
Pike County, AL  29,605
Randolph County, AL  22,380
Russell County, AL  49,756
Shelby County, AL  143,293
St Clair County, AL  64,742
Sumter County, AL  14,798
Talladega County, AL  80,321
Tallapoosa County, AL  41,475
Tuscaloosa County, AL  164,875
Walker County, AL  70,713
Washington County, AL  18,097
Wilcox County, AL  13,183
Winston County, AL  24,843