recording tax lein
extensions
Allows for a Department of
Revenue (DOR) tax lien to automatically expire after the six-year statute of
limitations unless DOR files an extension with the appropriate county recorder.
History:
Laws 1999, Chapter 250 expanded the taxpayers’ bill of rights, and among the changes was a reduction, from ten years to six years, in the length of time during which DOR can take action against a taxpayer for unpaid taxes. When this six-year time period is extended, either through taxpayer agreements or other actions such as bankruptcy filings, S.B. 1170 requires DOR to file a lien extension with the appropriate county recorder’s office. Since no extension is currently required, there is often confusion when property is sold. This requirement will eliminate the problem as to whether the title is clear or if the lien still exists.
S.B. 1170 is not expected to impact the state general fund. However, there are likely to be some costs to DOR because implementing the bill will require increased tracking efforts as well as payment of filling fee.
· Requires DOR, before an extension on a six-year period of limitation expires, to file a notice of the extension in each county where a notice of lien was recorded.
· Makes a technical change.
· Provides for a general effective date.
SB 1170 was amended in
the Ways and Means Committee as follows:
· Provides for an effective date for the act of taxable periods beginning from and after December 31, 2000.
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45th Legislature
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First Regular Session 2 March
20, 2001
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