11.009 Unredeemed Tax Sale to the State

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Requirement 11.009

Unredeemed Tax Sale to the State

 

 Unredeemed Tax Sale to the State.  The State of Alabama purchased an undivided one-half interest in the captioned property at a January 4, 1965, public tax sale for unpaid 1964 ad valorem taxes assessed against the captioned property in the name of John Q. Owner, as shown by tax sale record in Tax Sale Book 12, page 1.  The abstract does not show that John Q. Owner, or any of his heirs or assigns, ever redeemed the captioned property from the tax sale or that the State of Alabama ever sold the land.

 By statute enacted in the General Acts of 1935, p. 357, §232, which is now codified in Ala. Code § 40-10-20 (1975), the effect of the tax sale to the State of Alabama was to remove the property from the tax assessment rolls until the property was redeemed or sold by the State.  The abstract  indicates that the captioned  property was almost immediately assessed and taxed again, because there were subsequent tax sales of the same property in 1967 for unpaid 1966 taxes and in 1970 for unpaid 1969 taxes.  (Both the 1967 and the 1970 tax sales were redeemed.)  The significant fact is that the captioned property could not have been legally assessed for 1966 and 1969 taxes if there had not been a redemption from the 1965 tax sale.

 Requirement:   If you are unwilling to accept the risk that the State of Alabama still claims an interest in the captioned property under the 1965 tax sale, please advise us accordingly, and we shall supplement this requirement.  Due to the subsequent assessments of the property following the 1965 tax sale, we consider the risk that State of Alabama still claims an interest in the captioned property to be minimal and in the nature of a reasonable business risk to a coalbed methane gas operator.

Copyright 2011 by Edward G, Hawkins. All rights reserved.