county treasurers;
procedures
DPA |
Committee on Counties & Municipalities |
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Committee on Ways & Means |
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Caucus and COW |
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Third Read |
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As Passed the House |
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SB 1041 makes various changes to statute governing county treasurers’ procedures involving tax liens, unclaimed refunds and distribution of taxes.
Current Status
SB 1041 was amended in the Counties & Municipalities Committee to delete changes that the bill makes to A.R.S. § 42-18054, which relates to tax statements for mortgaged property. Also, the amendment deletes a section in the bill that outlines procedures for the expiration of tax liens purchased on or before September 30, 1999. Finally, the amendment extends the maximum lifetime on certificates of purchases from 5 to 10 years and allows for a 12 month extension under certain circumstances.
Current statute (A.R.S. § 42-18251) stipulates that at any time beginning five years after the sale of a tax lien on real property, if the lien is not redeemed by the purchaser of the lien or the owner of the property, then the property may be foreclosed on. Currently, statute does not outline a timeframe in which the lien holder must redeem the certificate of purchase or foreclose on the property. SB 1041 establishes a five-year maximum lifetime on certificates of purchase for tax liens.
SB 1041 makes other changes to county treasurers’ procedures involving distribution of taxes and unclaimed refunds.
· Requires the Arizona Department of Transportation (ADOT) to disperse vehicle license tax (VLT) monies due to incorporated cities and towns directly to the cities and towns rather than first distributing the monies to the county treasurers.
· Exempts Pinal County from the above provision until the court order, which mandates distribution to the county treasurer first, is satisfied. Requires the Pinal County Treasurer to notify ADOT when the court order has been satisfied.
· Requires the county treasurer to credit monies received from penalties charged to escaped property to the county general fund.
· Stipulates that the county treasurer may require payment by electronic funds transfer if the tax liability on the property exceeds $50,000.
· Requires the taxpayer, if paying by electronic funds transfer, to provide any supporting documentation and electronic information as requested by the treasurer. Outlines procedures for failed electronic funds transfers.
· Eliminates the requirement that a mortgagee that receives or possesses an unsatisfied tax statement return the tax statement to the county treasurer.
· Stipulates that any refunds which are unpaid and unclaimed for two years after the fiscal year in which they were budgeted shall revert to the appropriate fund of the political subdivision that levied the tax (currently, those monies revert to the county general fund).
· Establishes a five-year maximum lifetime on certificates of purchase for tax liens purchased after the effective date of this act if the tax lien is not redeemed by the owner of the property or the purchaser fails foreclose on the property.
· Exempts from the tax lien expiration, parcels for which the liens were purchased if, at the time of expiration, the parcels are subject to judicial proceedings or a 30-day notice procedure.
· Requires the treasurer to notify the purchaser, by certified mail, of the pending expiration of the tax lien between 30 and 60 days before the expiration. Requires notification by certified mail, within seven days after the expiration, that the tax lien and certificate of purchase have expired.
· Conforms statute to reflect the use of paperless certificates of purchase or registered certificates.
· States that an intent to file for foreclosure notice must be mailed out not more than 180 days before filing the action to foreclose.
· Outlines expiration and notice guidelines for tax liens purchased on or before September 30, 1999.
· Makes other technical and conforming changes.
Amendments
· Deletes changes that the bill makes to A.R.S. § 42-18054, which relates to tax statements for mortgaged property.
· Deletes a section in the bill that outlines procedures for the expiration of tax liens purchased on or before September 30, 1999.
· Extends the maximum lifetime on certificates of purchases from 5 to 10 years and allows for a 12 month extension under certain circumstances.
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DOCUMENT FOOTER ---------
45th Legislature
Second Regular Session 2 April
15, 2002
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