ARIZONA STATE SENATE
Phoenix, Arizona
recording tax lien
extensions
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.
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 administrative costs to DOR because implementing the
bill will require increased tracking efforts as well as payment of filing fees.
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. Inserts a conditional enactment clause, which states that the bill becomes effective after June 30, 2002, only if the Legislature appropriates funds, in FY 2002-2003, to the Department of Revenue to record the notices of tax lien extensions.
3. Makes a technical change.
4. Provides for a general effective date.
Amendments
Adopted by the House of Representatives
Inserts a conditional enactment clause, which states that the bill becomes effective after June 30, 2002, only if the Legislature appropriates funds, in FY 2002-2003, to DOR to record the notices of tax lien extensions.
Senate Action House Action
FIN 1/29/01 DP 8-0-0-0 WM 3/20/01 DPA 6-0-2-2
3rd Read 2/5/01 29-0-1-0 3rd Read 4/2/01 40-18-2-0
Transmitted without the Governor's signature 4/17/01
Chapter 122
Prepared by Senate Staff
May 14, 2001