Bill Text: AZ SB1135 | 2015 | Fifty-second Legislature 1st Regular | Chaptered
Bill Title: Tax liens; delinquency; partial payments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-04-14 - Chapter 322 [SB1135 Detail]
Download: Arizona-2015-SB1135-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-second Legislature First Regular Session 2015
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CHAPTER 322
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SENATE BILL 1135 |
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AN ACT
Amending sections 42‑18056, 42‑18121, 42-18152, 42-18154, 42-18201 and 42‑18202, Arizona Revised Statutes; relating to tax liens.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-18056, Arizona Revised Statutes, is amended to read:
42-18056. Partial payment of taxes; certificates of purchase; delinquent taxes
A. At any time before either installment of the tax becomes delinquent, the county treasurer shall accept a partial payment or payments of the tax in an amount of at least ten per cent percent of the installment and in an amount of at least ten dollars. The treasurer shall credit the taxpayer with the payment, and if any part of the tax or any installment remains unpaid at the date of delinquency, the delinquency relates only to the amount remaining unpaid.
B. In accepting payments under subsection A of this section, the county treasurer shall issue a receipt to the taxpayer, subject to section 42-18055, subsection C, stating that it covers a partial payment of taxes.
C. For all certificates of purchase sold during calendar year 2016 and afterwards for tax year 2014 and afterwards in a county with a population of more than three million persons if no prior year certificates of purchase are outstanding, the county treasurer shall accept a partial payment in an amount equal to at least twenty‑five percent of the principal amount shown on the oldest remaining year of the delinquency plus any accrued interest and fees due on the principal payment amount.
D. In accepting payments under subsection C of this section, the county treasurer shall issue a partial payment statement to the taxpayer as provided by section 42-18154, subsection C.
E. Partial payments on delinquent taxes shall be impounded and disbursed by the county treasurer as prescribed by section 42-18152, subsection C, when the impounded monies are sufficient to fully redeem the oldest outstanding certificate of purchase.
F. If no certificate of purchase is outstanding, the county treasurer shall credit the taxpayer with the payment, and if any part of the tax or any installment remains unpaid at the date of delinquency, the delinquency relates only to the amount remaining unpaid.
Sec. 2. Section 42-18121, Arizona Revised Statutes, is amended to read:
42-18121. Payment of subsequent taxes by certificate holder; separate certificate of purchase by assignment; fee
A. On or after June 1, if a person who holds a certificate of purchase desires to pay subsequent taxes, accrued interest and related fees due on the property, the person shall exhibit the certificate or receipt of registered certificate to the county treasurer. The treasurer shall enter the amount of the payment on the certificate and on the record of tax lien sales. The amount of subsequent taxes bears interest at the rate stated in the certificate of purchase from the first day of the month following the purchase of the subsequent tax lien.
B. The county treasurer shall collect a fee of five dollars from the holder of the certificate for making the entries.
B. Beginning in calendar year 2016, on or after June 1 in a county with a population of more than three million persons if no prior year certificates of purchase are outstanding, if a person who holds a certificate of purchase for tax year 2014 and afterwards desires to pay subsequent taxes, the county treasurer shall issue a separate certificate of purchase by assignment for each subsequent year's taxes, accrued interest and related fees due on the property. The principal amount of each subsequent year's certificate of purchase bears interest at the rate stated in the original certificate of purchase exhibited by the person from the first day of the month following the purchase of the subsequent certificate. The treasurer shall collect a fee of five dollars for assignment of a certificate of purchase for each subsequent year. Except as provided by section 42-18201, subsection B, subsequent certificates of purchase by assignment carry the same foreclosure right as the original certificate of purchase, and partial payments shall be accepted by the treasurer as prescribed by section 42‑18056, subsection C, by any party with a vested interest in the property.
Sec. 3. Section 42-18152, Arizona Revised Statutes, is amended to read:
42-18152. When lien may be fully redeemed
A. A real property tax lien may be fully redeemed at any time:
1. Within three years after the date of sale.
2. After three years but before the delivery of a treasurer's deed to the purchaser or the purchaser's heirs or assigns.
B. A lien that has been partially redeemed under section 42-18056, subsection c must be fully redeemed before the delivery of a treasurer's deed to the purchaser.
C. The county treasurer shall refund all partial payment amounts impounded under section 42-18056, subsection E, to the person or persons or their heirs or assigns within thirty days after delivering the treasurer's deed to the purchaser.
Sec. 4. Section 42-18154, Arizona Revised Statutes, is amended to read:
42-18154. Certificate of redemption; issuance; contents; fee
A. If a person requests to redeem a real property tax lien that was sold under article 3 of this chapter, and if the county treasurer is satisfied that the person has the right to redeem the tax lien, and if the person pays the amount due, the county treasurer shall issue to the person a certificate of redemption.
B. The certificate shall:
1. Describe the parcels on which the tax lien is redeemed.
2. State:
(a) The date of redemption.
(b) The amount paid.
(c) By whom redeemed.
C. If a person requests to make a partial payment on a certificate of purchase in a county with a population of more than three million persons and if the county treasurer is satisfied that the person has the right to make a partial payment and if the person pays the amount due pursuant to section 42‑18056, subsection C, the treasurer shall issue to the person a statement of partial payment. The partial payment statement shall:
1. Identify the person or entity making the partial payment.
2. Describe the parcels on which the partial payment is made.
3. State:
(a) The date of the partial payment.
(b) The amount paid.
(c) The amount remaining due to fully redeem the lien on the date of the partial payment.
C. D. For each certificate of redemption and statement of partial payment, the county treasurer shall:
1. Make the proper entries in the treasurer's record of tax lien sales.
2. Collect a fee of five dollars for the first and last partial payment and ten dollars for a full redemption if no partial payments were made.
D. E. A holder of a certificate of redemption may record the certificate in the office of the county recorder.
Sec. 5. Section 42-18201, Arizona Revised Statutes, is amended to read:
42-18201. Action to foreclose right to redeem; subsequent certificates of purchase by assignment
A. Except as provided in subsection B of this section, at any time beginning three years after the sale of a tax lien but not later than ten years after the last day of the month in which the lien was acquired pursuant to section 42‑18114, 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 to foreclose the right to redeem. The action to foreclose the right to redeem shall be filed in the superior court in the county in which the real property is located and shall name the county treasurer as a party to the action. If any applicable law or court order prohibits bringing an action to foreclose the right to redeem, the limitation provided herein shall be extended twelve months following the termination of such prohibition.
B. For a subsequent year certificate of purchase by assignment issued under section 42‑18121, subsection B, at any time beginning three years after the date the subsequent year certificate of purchase was assigned but not later than ten years after the last day of the month in which the tax lien was assigned under section 42‑18121, 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 to foreclose the right to redeem the lien represented by certificates of purchase acquired by assignment and held by the party that filed the action to foreclose. All certificates of purchase held by other parties remain in place. The action to foreclose the right to redeem shall be filed in the superior court in the county in which the real property is located and shall name the county treasurer as a party to the action. If any applicable law or court order prohibits bringing an action to foreclose the right to redeem, the limitation provided in this subsection shall be extended twelve months following the termination of the prohibition.
Sec. 6. Section 42-18202, Arizona Revised Statutes, is amended to read:
42-18202. Notice
A. At least thirty days before filing an action to foreclose the right to redeem under this article, but not more than one hundred eighty days before such an action is commenced or may be commenced under section 42‑18101 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) of this paragraph.
(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) of this paragraph.
2. The treasurer of the county in which the real property is located. The county treasurer may not accept partial payments under section 42‑18056, subsection c after the date The treasurer receives a notice of action to foreclose the right to redeem.
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.
C. If the purchaser fails to send the notice required by this section, the purchaser is considered to have substantially failed to comply with this section. A court shall not enter any action to foreclose the right to redeem under this article until the purchaser sends the notice required by this section.
APPROVED BY THE GOVERNOR APRIL 14, 2015.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 15, 2015.
