--------------------------------------------------- ¦ REFERENCE TITLE: property tax enforcement reform ¦ --------------------------------------------------- ¦ ¦ ¦ ¦ ¦ ¦ ¦ State of Arizona ¦ ¦ House of Representatives ¦ ¦ Forty-fifth Legislature ¦ ¦ First Regular Session ¦ ¦ 2001 ¦ --------------------------------------------------- ¦ HB 2591 ¦ --------------------------------------------------- ¦ Introduced by ¦ ¦ Representatives Voss, Weason, Brotherton: Norris ¦ ---------------------------------------------------
AN ACT
AMENDING SECTIONS 42-17153, 42-18118, 42-18125, 42-18202, 42-18206 AND 42-18352, ARIZONA REVISED STATUTES; RELATING TO PROPERTY TAX ENFORCEMENT.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-17153, Arizona Revised Statutes, is amended to read:
42-17153. Lien for taxes; time lien attaches; priority
A. Except as provided in subsection B of this section, a tax that is levied on real or personal property is a lien on the assessed property.
B. A tax that is levied against personal property of a person who owns real property of a value of less than two hundred dollars in the county is a personal liability of the property owner, in addition to being a lien against the property.
C. The lien:
1. Attaches on January 1 of each year.
2. Is not satisfied or removed until one of the following occurs:
(a) The taxes, penalties, charges and interest are paid.
(b) Title to the property has finally vested in a purchaser under a sale for taxes.
(c) A certificate of removal and abatement has been issued pursuant to section 42- 18353.
3. Is prior and superior to all other liens and encumbrances on the property, except:
(a) Liens or encumbrances held by this state.
(b) LIENS FOR TAXES ACCRUING IN SUBSEQUENT YEARS.
D. If a political subdivision of this state acquires title to property after December 31, 1998, any lien for delinquent taxes on the property:
1. Is not abated, extinguished, discharged or merged in the title to the property unless approved by the county board of supervisors.
2. Is enforceable in the same manner as other delinquent tax liens.
Sec. 2. Section 42-18118, Arizona Revised Statutes, is amended to read:
42-18118. Certificate of purchase or registered certificate; form; transfer; fee
A. The county treasurer shall make, execute and deliver a certificate of purchase to each purchaser at the sale for delinquent taxes or to each assignee. The treasurer may provide for a registered certificate in the treasurer's records in lieu of delivering a physical certificate.
B. The certificate of purchase or registered certificate shall:
1. Describe the real property on which a tax lien is sold as it is described in the record of tax lien sales.
2. Recite the date of the sale.
3. State the name of the purchaser.
4. Recite the tax year or years for which the tax lien was sold.
5. Recite the amount of all taxes, interest, penalties and charges for which the tax lien was sold and the rate of interest payable in order to redeem.
C. The certificate of purchase, whether registered or paper or whether issued to this state or to a person, is assignable by endorsement. An assignment, when noted on the record of tax lien sales in the office of the county treasurer vests in the assignee all the right and title of the original purchaser.
D. THE PURCHASER OF A CERTIFICATE OF PURCHASE HAS THE OPTION TO ALSO PURCHASE ANY PREVIOUSLY ISSUED CERTIFICATE OF PURCHASE FOR PRIOR YEAR TAXES ON THE SAME REAL PROPERTY. THE PURCHASE PRICE FOR THE PREVIOUSLY ISSUED CERTIFICATE OF PURCHASE IS THE AMOUNT PRESCRIBED BY SECTION 42-18153 TO REDEEM THE CERTIFICATE TO BE PURCHASED. ON EXERCISING THIS OPTION, THE COUNTY TREASURER SHALL ISSUE A NEW CERTIFICATE OF PURCHASE REFLECTING ALL TAX YEARS HELD BY THE PURCHASER. THE DATE OF SALE ON THE NEW CERTIFICATE IS THE DATE OF SALE OF THE EARLIEST CERTIFICATE OF PURCHASE ASSIGNED TO THE PURCHASER. THE PERSON WHO HELD THE ORIGINAL CERTIFICATE OF PURCHASE WHOSE INTEREST HAS BEEN TRANSFERRED SHALL BE PAID AS IF THE ORIGINAL TAX LIEN HAD BEEN REDEEMED.
D. E. The county treasurer shall collect from the purchaser or
assignee a fee of ten dollars for each certificate.
Sec. 3. Section 42-18125, Arizona Revised Statutes, is amended to read:
42-18125. Erroneous sales; officer's liability
A. If by mistake or wrongful act of the county treasurer, recorder or assessor, or as a result of double assessment, a real property tax lien is sold on property on which no tax is due, OR IF THE TAX LIEN SALE IS OTHERWISE VOID, the county treasurer shall hold the purchaser harmless by paying the purchaser the amount of the principal and interest at the rate bid and endorsed on the certificate of purchase or twelve per cent per year simple, whichever is less.
B. The treasurer, recorder or assessor, as the case may be, and the surety on the official bond of the officer are liable to the county for interest on sales made through the officer's mistake or misconduct.
Sec. 4. Section 42-18202, Arizona Revised Statutes, is amended to read:
42-18202. Notice
A. At least thirty days before filing an action to foreclose the right to redeem under this article, the purchaser shall send notice of intent to file the foreclosure action by certified mail to:
1. The property owner of record according to the records of the county recorder
in the county in which the property is located AT:
(a) THE ADDRESS SHOWN ON THE TAX ROLL.
(b) THE SITUS ADDRESS OF THE PROPOERTY, IF SHOWN ON THE TAX ROLL AND IF DIFFERENT FROM THE OWNER'S ADDRESS UNDER SUBDIVISION (a).
(c) THE TAX BILL MAILING ADDRESS ACCORDING TO THE COUNTY TREASURER'S RECORDS, IF THAT ADDRESS IS DIFFERENT FROM THE ADDRESSES UNDER SUBDIVISIONS (a) AND (b).
2. The treasurer of the county in which the real property is located.
B. The notice shall include:
1. The property owner's name.
2. The real property tax parcel identification number.
3. The legal description of the real property.
4. The certificate of purchase number.
5. The proposed date of filing the action.
Sec. 5. Section 42-18206, Arizona Revised Statutes, is amended to read:
42-18206. Redemption during pendency of action to foreclose; costs
A. Any person who is entitled to redeem under article 4 of this chapter may
redeem at any time before judgment is entered, notwithstanding that an action has been
commenced. , but If the person who redeems has been served personally or by
publication in the action, judgment shall be entered in favor of the plaintiff against
the person for the costs incurred by the plaintiff, including a :
1. Reasonable attorney fee FEES to be determined by the court.
2. COSTS ALLOWED UNDER SECTION 12-332.
3. COSTS INCURRED FOR SERVICE OF PROCESS, INCLUDING COSTS OF PUBLICATION OF SUMMONS AND INVESTIGATIVE FEES RELATED TO SERVICE OF PROCESS.
4. TITLE REPORT CHARGES AND FILING AND RECORDING FEES INCURRED IN THE ACTION.
B. COSTS AWARDED PURSUANT TO THIS SECTION CONSTITUTE A LIEN HAVING THE SAME PRIORITY PRESCRIBED BY SECTION 42-17153, SUBSECTION C, PARAGRAPH 3 AND SUBSECTION D.
Sec. 6. Section 42-18352, Arizona Revised Statutes, is amended to read:
42-18352. Determining existence of circumstances for abating tax and removing lien; action to recover illegally collected tax
A. The county treasurer may, on the treasurer's own motion, and shall on the application of a property owner OR LIENHOLDER, determine the existence, in any prior year or years, with respect to real property located in the county, of any of the situations described in section 42-18351.
B. If proceeding on the treasurer's own motion under this section, the county treasurer shall conduct an investigation that the treasurer considers to be necessary to determine the existence or nonexistence of any of the situations described in section 42- 18351.
C. If a property owner OR LIENHOLDER applies under this section, the
property owner APPLICANT shall submit to the county treasurer sufficient
evidence to permit the county treasurer to determine the existence or nonexistence of one
of the situations described in section 42-18351.
D. If the county treasurer determines that any of the situations described in section 42-18351 exists in a prior year or years, the treasurer shall grant appropriate relief, subject to the approval of the board of supervisors and the department. The relief may include removing all or part of the lien or abating all or part of the tax.
E. A property owner OR LIENHOLDER who is aggrieved by an adverse determination on an application pursuant to this section and who pays the tax may maintain an action to recover the tax alleged to be illegally collected. If the tax due is determined to be less than the amount paid, the excess shall be refunded in the manner provided by this title.