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REFERENCE TITLE: tax liens; delinquency; partial payments. |
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State of Arizona Senate Fifty-second Legislature First Regular Session 2015
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SB 1135 |
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Introduced by Senator Smith
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AN ACT
Amending sections 42‑18056, 42‑18121, 42‑18153 and 42‑18201, 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; partial receipt; partial payment after delinquency in elderly assistance fund counties; 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 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. If an elderly assistance fund is established in the county pursuant to section 42‑17401, At any time after the tax becomes delinquent, the county treasurer shall accept a partial payment in an amount equal to at least twenty‑five percent of the total amount remaining due on the oldest year of the delinquency.
D. In accepting payments under subsection C of this section, the county treasurer shall issue a receipt to the taxpayer and provide a copy of the receipt to any holder of a certificate of purchase under section 42‑18119.
E. The county treasurer shall credit the taxpayer for the payment. If any part of the total amount of tax, interest and fees remains unpaid, the delinquency relates only to the amount remaining unpaid. Partial payments on delinquent taxes shall be disbursed by the county treasurer as prescribed by section 42‑18155.
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; separate redemptions; 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. Except for counties that have established an elderly assistance fund pursuant to section 42‑17401, 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. If an elderly assistance fund is established in the county pursuant to section 42‑17401, the 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 amount of each subsequent year's taxes bears interest at the rate stated in the original certificate of purchase from the first day of the month following the purchase of the subsequent tax lien.
B. Except as provided in section 42‑18201, subsection B, subsequent certificates of purchase by assignment issued by the county treasurer carry the full foreclosure right as the original certificate of purchase and may be redeemed separately as prescribed by section 42‑18155 in whole or in part by any party with a vested interest in the property.
B. C. The county treasurer shall collect a fee of five dollars from the holder of the certificate for making the entries.
Sec. 3. Section 42-18153, Arizona Revised Statutes, is amended to read:
42-18153. Amount required for redemption; elderly assistance fund deposit
A. To redeem a real property tax lien, a person must pay to the county treasurer:
1. The amount for which the real property tax lien was sold, with interest at the rate stated in the certificate of purchase.
2. The amount of all taxes accruing on the real property after the sale and paid by the purchaser and endorsed on the certificate of purchase, with interest on the subsequent taxes at the same rate as stated in the certificate of purchase.
3. Any statutory fees paid by the purchaser or the purchaser's assigns in connection with the certificate, except the processing fee imposed by section 42-18116, subsection C, with interest at the rate stated in the certificate of purchase except as otherwise provided by this chapter.
B. To redeem a real property tax lien in a county that has established an elderly assistance fund, a person shall pay to the county treasurer:
1. The amount for which the real property tax lien was sold, with interest at the rate prescribed by section 42-18053.
2. The amount of all taxes accruing on the real property after the sale and paid by the purchaser and endorsed on the certificate of purchase, with interest on the subsequent taxes at the same rate prescribed by section 42-18053.
3. Any statutory fees paid by the purchaser or the purchaser's assigns in connection with the certificate, except the processing fee imposed by section 42-18116, subsection C, with interest at the rate prescribed by section 42-18053 except as otherwise provided by this chapter.
C. After a real property tax lien is redeemed under subsection B of this section, and if an elderly assistance fund is established in the county pursuant to section 42-17401, the county treasurer shall deposit an amount in the elderly assistance fund that is equal to Eighty percent of the difference in the amount of interest prescribed by section 42-18053 and the amount of interest stated in the certificate of purchase. The remaining Twenty percent shall be paid to the holder of the certificate of purchase if the redemption was made in partial payments as provided in section 42‑18056.
Sec. 4. 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 A, at any time beginning three years after the date the tax lien would have been otherwise noticed and offered under section 42‑18106 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 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.