SB1041 - 452R

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       Senate Engrossed
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  State of Arizona
  Senate
  Forty-fifth
  Legislature
  Second Regular Session
  2002
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    SENATE BILL 1041
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AN ACT

AMENDING SECTIONS 11-644, 28-5808, 42-15053, 42-18051, 42-18054 AND 42-18061, ARIZONA REVISED STATUTES; AMENDING TITLE 42, CHAPTER 18, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING SECTION 42-18127; AMENDING SECTIONS 42-18155, 42-18201 AND 42-18202, ARIZONA REVISED STATUTES; RELATING TO COUNTY TREASURERS.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-644, Arizona Revised Statutes, is amended to read:

11-644. Failure to present county check or warrant for payment; notice; claim

A. A check that is drawn by the county treasurer in the treasurer's official capacity or a warrant that is drawn on the county general fund and that is not presented for payment within one year after the date of issuance is void, ~~and~~ is deemed to have been paid AND IS NOT SUBJECT TO SECTION 44-302.

B. The entity drawing the check or warrant shall:

1. Notify the payee that the check or warrant is void. If the check is for less than fifty dollars, the notice shall be given by first class mail. If the check is for fifty dollars or more, the notice shall be given by certified mail.

2. Deposit the monies in the county general fund or other appropriate fund.

C. At any time within one year after an unpresented check or warrant has been voided as provided in subsection A, the person in whose favor the check or warrant was drawn, or the person's personal representative, successors or assignees, may present a claim for the amount of the check or warrant to the board of supervisors. If the board finds that the claim is legitimate and that there is good and sufficient reason for failure to present the original check or warrant, the board may allow the claim and order it to be paid from the COUNTY general fund ~~of the county~~ OR OTHER APPROPRIATE FUND.

Sec. 2. Section 28-5808, Arizona Revised Statutes, is amended to read:

28-5808. Vehicle license tax distribution

A. The director shall distribute monies collected by the director pursuant to section 28-5801, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:

1. On the first calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, all of the Arizona highway user revenue fund monies received from the first to the fifteenth calendar day of the preceding month to the Arizona highway user revenue fund.

2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, all of the Arizona highway user revenue fund monies received from the sixteenth through the last day of the preceding month in the Arizona highway user revenue fund and distribute or deposit all other monies received during the entire preceding month as follows:

(a) The county general fund monies to the county general fund.

(b) The county highway monies to the state treasurer to be apportioned among the counties for the same use as highway user revenue fund monies on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state as shown by the most recent United States decennial census.

(c) The incorporated cities and towns monies to the ~~county treasurer to be distributed to the~~ incorporated cities and towns of the county ~~apportioned~~ in proportion to the population of each as shown by the most recent United States census.

B. The director shall distribute monies collected by the director pursuant to sections 28-5804, 28-5805, 28-5806 and 28-5810, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:

1. On the first calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, 37.61 per cent of all monies received from the first through the fifteenth calendar day of the preceding month in the highway user revenue fund.

2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, 37.61 per cent of all monies received from the sixteenth through the last day of the preceding month in the highway user revenue fund and distribute or deposit the following amounts as a percentage of all monies received pursuant to sections 28-5804, 28-5805, 28-5806 and 28-5810 during the entire preceding month as follows:

(a) 20.45 per cent to the county general fund.

(b) 4.91 per cent to the state treasurer to be apportioned among the counties for the same use as highway user revenue fund monies on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state as shown by the most recent United States decennial census.

(c) 20.45 per cent to the ~~county treasurer to be distributed to the~~ incorporated cities and towns of the county ~~apportioned~~ in proportion to the population of each as shown by the most recent United States census.

(d) Except as provided in subsection C of this section, 1.64 per cent shall be deposited, pursuant to sections 35-146 and 35-147, in the state highway fund established by section 28-6991.

(e) 4.09 per cent in the state highway fund established by section 28-6991.

(f) 10.85 per cent shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund to aid school financial assistance.

C. Through September 30, 2003, if the department's authorized share of federal surface transportation program monies in each year is more than forty-two million dollars, the director shall deposit each year in equal installments during the year an annual amount equal to the difference between this state's authorized share of federal surface transportation program monies and forty-two million dollars from the amount prescribed in subsection B, paragraph 2, subdivision (d) of this section in the local transportation assistance fund established by section 28-8101. Monies deposited in the local transportation assistance fund pursuant to this subsection shall be distributed to eligible cities, towns and counties as provided in section 28-8103. The amount distributed pursuant to this subsection shall not exceed the amount prescribed in subsection B, paragraph 2, subdivision (d) of this section.

D. If an incorporated city or town has had no federal enumeration, the supervisors shall both:

1. Appoint a qualified person to take an accurate census of the incorporated city or town.

2. Certify the results to the county treasurer, and the incorporated city or town shall share in the distribution as provided by this section.

Sec. 3. Section 42-15053, Arizona Revised Statutes, is amended to read:

42-15053. Duty to report personal property; confidentiality

A. On or before February 1 of each year, the assessor shall mail a form, notice or demand to each person who owns or has charge or control of taxable personal property in the state. Each person shall prepare and deliver to the assessor a correct report of property on or before April 1 of each year, except for property that is not required to be reported as provided by subsection C of this section. On written request and for good cause shown, the assessor may extend for up to thirty days the time for filing the report.

B. The duty to report taxable property pursuant to this section applies regardless of whether the person or entity that owns or has charge or control of the personal property also owns real property in the county with a value of two hundred dollars or more.

C. The assessor shall not require a report of:

1. The breed, number, age or location of livestock on hand from individuals, corporations, partnerships or any other business if the livestock is exempt from taxation pursuant to article IX, section 13, Constitution of Arizona.

2. The personal property that is class four property used for agricultural purposes or that is class three property used in a trade or business that is exempt from taxation pursuant to article IX, section 2, subsection (6), Constitution of Arizona.

D. Every assessment made against property subject to taxation is valid whether or not the form, notice or demand was sent or received.

E. The department shall prescribe in detail the contents of property reports including the specific wording to be used by county assessors and the method of reporting property. The report shall not include any question that is not germane to the valuation function.

F. A report that is furnished under this section:

1. Is not open to public inspection, but the report may be used as evidence in any prosecution brought under section 42-15055.

2. May be subject to audit. On completing an audit or on discovering property that has not been reported, any property that was found to have escaped taxation is liable for the amount of taxes due determined under chapter 16, article 6 of this title, plus a penalty equal to ten per cent of that amount. THE COUNTY TREASURER SHALL CREDIT MONIES RECEIVED AS PENALTIES UNDER THIS PARAGRAPH TO THE COUNTY GENERAL FUND.

Sec. 4. Section 42-18051, Arizona Revised Statutes, is amended to read:

42-18051. Notice of tax

A. Immediately on receiving the tax roll from the county board of supervisors, the county treasurer shall publish an official notice stating:

1. That the assessment and tax roll is now in the treasurer's possession for collecting the taxes levied.

2. That the taxes on real property and personal property are due and payable and become delinquent at the dates and times prescribed by section 42-18052, and interest will be added to the tax from the time of the delinquency as prescribed by section 42-18053, unless either:

(a) The first half of the taxes are paid before they are delinquent.

(b) The full year tax is paid on or before December 31, as provided by section 42-18053.

3. That all taxes may be paid at the time the first installment is due and payable.

4. When and where tax payments may be made.

B. The county treasurer shall publish the notice once a week for four consecutive weeks in a newspaper of general circulation in the county.

C. No other demand for taxes is necessary.

D. Each person who is subject to taxation shall pay the taxes at the county treasurer's office, or at any other location designated by the treasurer, before they become delinquent.

E. IF THE TAX LIABILITY ON ANY PROPERTY EXCEEDS FIFTY THOUSAND DOLLARS, THE COUNTY TREASURER MAY REQUIRE PAYMENT ON OR BEFORE THE DATES PRESCRIBED BY SECTION 42-18052 BY ELECTRONIC FUNDS TRANSFER TO THE BANK ACCOUNT DESIGNATED BY THE TREASURER. A PERSON WHO PAYS BY ELECTRONIC FUNDS TRANSFER SHALL PROVIDE ANY SUPPORTING DOCUMENTATION AND ELECTRONIC INFORMATION AS REQUESTED BY THE TREASURER. IF AN ELECTRONIC FUNDS TRANSFER IS NOT ACCEPTED FOR ANY REASON, ANY RECORD OF PAYMENT ENTERED ON ANY OFFICIAL RECORD INDICATING THE ACCEPTANCE OF THAT TRANSFER SHALL BE CANCELLED, THE TAX SHALL BE A LIEN AS IF NO PAYMENT HAS BEEN MADE AND THE TREASURER SHALL SEND A NOTICE OF CANCELLATION TO THE OWNER OF THE PROPERTY. ON NOTICE OF NONACCEPTANCE OF AN ELECTRONIC FUNDS TRANSFER, THE TREASURER MAY ASSESS THE OWNER OF THE PROPERTY A FEE THAT DOES NOT EXCEED THE COSTS OF PROCESSING THE TRANSFER, PROVIDING NOTICE OF NONACCEPTANCE TO THE OWNER AND MAKING THE REQUIRED CANCELLATIONS ON THE TAX ROLL.

Sec. 5. Section 42-18054, Arizona Revised Statutes, is amended to read:

42-18054. Tax statements for mortgaged property

A. If property that is subject to taxation by the county assessor is mortgaged and the mortgagee, or a person acting for the mortgagee, by the terms of the mortgage agreement pays the tax on behalf of the mortgagor:

1. The county treasurer, on request, shall mail a statement of taxes due on the property to the mortgagor, at the mortgagor's last known address, and to the mortgagee. The tax statement sent to the mortgagor shall be a written document. The tax statement sent to the mortgagee may be in any form established by the county treasurer.

2. The liability for the tax, and any subsequent interest, fees and penalties, does not depend on either the mortgagor or the mortgagee receiving the tax statement.

B. When a mortgagee either continues to receive or possesses an unsatisfied tax statement from the county treasurer after the mortgage is satisfied, the mortgagee shall ~~either:~~

~~1. Return the tax statement to the county treasurer within thirty working days, together with the last known address of the mortgagor as shown on the records of the mortgagee.~~

2. forward the tax statement or current taxes due information AND THE COUNTY TREASURER'S NAME, ADDRESS AND TELEPHONE NUMBER to the mortgagor ~~and notify the county treasurer of this action~~.

C. If a mortgagee fails to comply with subsection B, and as a result of the mortgagee's failure to comply the tax on the mortgagor's property becomes delinquent, the mortgagee is liable to the mortgagor for all interest and penalties imposed by law for the delinquent tax.

Sec. 6. Section 42-18061, Arizona Revised Statutes, is amended to read:

42-18061. Refund of overpayment due to change in tax roll; reversion of unclaimed refund

A. If a change is made in the tax roll pursuant to law, the county treasurer shall refund any taxes that have been overpaid as a result of the change as follows:

1. If monies are available, the county treasurer shall pay the refunds out of those monies in the current year.

2. If monies are not available, the board of supervisors shall budget for the refund in the next fiscal year.

3. The county treasurer is entitled to credit for the refunds in the next accounting after the repayment with each of the political subdivisions and this state to which the overpayment of tax was distributed.

4. The state and any affected political subdivision shall include in their budgets for the fiscal year the proportional amount of the refund for which each is liable.

B. If a refund that is authorized by this section is unpaid and unclaimed two years after the ~~original due date of the tax~~ FISCAL YEAR IN WHICH IT WAS BUDGETED, the monies that were budgeted for the refund revert to the ~~county general~~ APPROPRIATE fund OF THE POLITICAL SUBDIVISION THAT LEVIED THE TAX.

Sec. 7. Title 42, chapter 18, article 3, Arizona Revised Statutes, is amended by adding section 42-18127, to read:

42-18127. Expiration of lien and certificate; notice; applicability

A. IF THE TAX LIEN IS NOT REDEEMED AND THE PURCHASER OR THE PURCHASER'S HEIRS OR ASSIGNS FAIL TO COMMENCE AN ACTION TO FORECLOSE THE RIGHT OF REDEMPTION AS PROVIDED BY THIS CHAPTER WITHIN FIVE YEARS AFTER THE LAST DAY OF THE MONTH IN WHICH THE LIEN WAS ACQUIRED PURSUANT TO SECTION 42-18114, THE CERTIFICATE OF PURCHASE OR REGISTERED CERTIFICATE EXPIRES AND THE LIEN IS VOID.

B. AT LEAST THIRTY BUT NOT MORE THAN SIXTY DAYS BEFORE THE EXPIRATION DATE, THE TREASURER SHALL NOTIFY THE PURCHASER BY CERTIFIED MAIL OF THE PENDING EXPIRATION. WITHIN SEVEN DAYS AFTER EXPIRATION, THE TREASURER SHALL NOTIFY THE PURCHASER BY CERTIFIED MAIL THAT THE LIEN AND CERTIFICATE OF PURCHASE OR REGISTERED CERTIFICATE HAVE EXPIRED.

C. THIS SECTION APPLIES TO LIENS PURCHASED FROM AND AFTER THE EFFECTIVE DATE OF THIS ACT.

D. THIS SECTION DOES NOT APPLY IF, AT THE TIME OF EXPIRATION, THE PARCEL FOR WHICH THE LIEN WAS PURCHASED IS SUBJECT TO A JUDICIAL PROCEEDING OR A THIRTY DAY NOTICE PURSUANT TO SECTION 42-18202.

Sec. 8. Section 42-18155, Arizona Revised Statutes, is amended to read:

42-18155. Payment of redemption money to holder of certificate of purchase or registered certificate

A. On demand of any person who is entitled to redemption money held by the county treasurer, the treasurer shall pay the money to that person on the surrender of the certificate of purchase OR ON THE REDEMPTION OF THE REGISTERED CERTIFICATE for the redeemed tax lien.

B. If only a portion of the tax lien on the property described in the certificate of purchase OR THE REGISTERED CERTIFICATE has been redeemed, the treasurer shall endorse on the certificate OR ANNOTATE THE RECORD OF THE REGISTERED CERTIFICATE the portion redeemed and the amount of money paid to the person holding the certificate and shall take a receipt for the money paid.

Sec. 9. Section 42-18201, Arizona Revised Statutes, is amended to read:

42-18201. Action to foreclose right to redeem

At any time beginning three years after the sale of a tax lien BUT NOT LATER THAN FIVE YEARS AFTER THE LAST DAY OF THE MONTH IN WHICH THE LIEN WAS SOLD, if the lien is not redeemed, the purchaser or the purchaser's heirs or assigns, or the state if it is the assignee, may bring an action in superior court in the county in which the real property is located to foreclose the right to redeem.

Sec. 10. Section 42-18202, Arizona Revised Statutes, is amended to read:

42-18202. Notice

A. At least thirty days BUT NOT MORE THAN ONE HUNDRED EIGHTY 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 or to all of the following:

(a) The property owner according to the records of the county assessor in the county in which the property is located as determined by section 42-13051.

(b) The situs address of the property, 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 records of the county treasurer in the county in which the property is located, 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. 11. Expiration of lien and certificate; notice

A. If a tax lien that was purchased on or before September 30, 1999 is not redeemed and the purchaser or the purchaser's heirs or assigns fail to commence an action to foreclose the right of redemption on or before September 30, 2004, the certificate of purchase or registered certificate expires and the lien is void.

B. On or before September 30, 2003, the county treasurer shall notify each purchaser by certified mail of the pending expiration.

C. Subsection A does not apply if, at the time of expiration, the parcel for which the tax lien was purchased is subject to a judicial proceeding.

Sec. 12. Vehicle license tax monies; Pinal county distribtuion

Notwithstanding section 28-5808, subsection A, paragraph 2, subdivision (c) and subsection B, paragraph 2, subdivision (c), Arizona Revised Statutes, as amended by this act, the director of the department of transportation shall distribute vehicle license tax monies collected pursuant to section 28-5801, Arizona Revised Statutes, to the Pinal county treasurer for the incorporated cities and towns in Pinal county. The Pinal county treasurer shall distribute the monies to the incorporated cities and towns in Pinal county pursuant to the court order that requires such distribution. The director shall continue to distribute the monies to the Pinal county treasurer until the court order is satisfied. Once the court order is satisfied, the Pinal county treasurer shall notify the director of the department of transportation and the director shall directly distribute the monies to the incorporated cities and towns in Pinal county in proportion to the population of each pursuant to section 28-5808, subsection A, paragraph 2, subdivision (c) and subsection B, paragraph 2, subdivision (c), Arizona Revised Statutes, as amended by this act.