Assigned to FIN                                                                                                                 FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1170

 

recording tax lien extensions

 

Purpose

 

            Provides 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.

 

Background

 

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.

 

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 filing fees.

 

Provisions

 

1.      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.

 

2.      Makes a technical change.

 

3.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 25, 2001