Alabama § 40-10-184 Auction Procedures; Winning Bids; No Extinguishment of Restrictions, Covenants, Etc

Alabama Statutes

§ 40-10-184 — Auction Procedures; Winning Bids; No Extinguishment of Restrictions, Covenants, Etc

Alabama § 40-10-184

Title 40Revenue and Taxation

Ch. 10Sale of Land

Art. 7Sale of Tax Liens

This text of Alabama § 40-10-184 (Auction Procedures; Winning Bids; No Extinguishment of Restrictions, Covenants, Etc) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-10-184 (2026).

Text

(a)On the day and time designated for a tax lien auction, the tax collecting official shall proceed to auction all tax liens described in the tax lien auction list compiled as provided in Section 40-10-183, except those for which the taxes, penalties, interest, fees, and costs have been paid. Any tax lien unsold after a tax lien auction shall continue pursuant to Section 40-1-3 for future auction or sale as provided in this article. Interest shall continue to accrue on unsold tax liens at the rate imposed on delinquent real property taxes.

(b)(1) A tax lien shall be sold at auction pursuant to this article to the person who:

(i)pays all taxes due, including unpaid taxes for previous years, interest, penalties, fees, and costs due on the property;

(ii)pays an administrative fee of forty-

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(a) On the day and time designated for a tax lien auction, the tax collecting official shall proceed to auction all tax liens described in the tax lien auction list compiled as provided in Section 40-10-183, except those for which the taxes, penalties, interest, fees, and costs have been paid. Any tax lien unsold after a tax lien auction shall continue pursuant to Section 40-1-3 for future auction or sale as provided in this article. Interest shall continue to accrue on unsold tax liens at the rate imposed on delinquent real property taxes.
(b)(1) A tax lien shall be sold at auction pursuant to this article to the person who: (i) pays all taxes due, including unpaid taxes for previous years, interest, penalties, fees, and costs due on the property; (ii) pays an administrative fee of forty-five dollars ($45), effective upon the preparation of the tax lien auction list, plus the amount to be paid to the holder of a tax lien certificate who has not exercised his or her first right to purchase as provided in Section 40-10-191; 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.
(3) If an in-person auction ends in a tie and the winner cannot be determined, the tax collecting official shall draw lots to determine the winning bidder. If an online auction ends in a tie and the winner cannot be determined, the tie shall be resolved by a random number generator.
(c) The sale of a tax lien does not extinguish any deed restriction, deed covenant, or easement on or appurtenant to the parcel. A tax lien offered for auction or sale shall be identified by a uniform parcel number and a legal description.