recording tax lien
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, SB 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.
SB 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.
SB 1170 was amended in Committee of the
Whole.
·
Removes
the Ways and Means amendment and adopts a conditional enactment that states the
bill is effective only if the Legislature appropriates monies to DOR by June
30, 2002 for the purposes of recording the notices of the tax lien extensions.
SB 1170 passed the House of Representatives
as amended in Committee of the Whole.
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DOCUMENT FOOTER ---------
45th Legislature
First Regular Session 2 April
3, 2001
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