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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
tax lien sales; procedures
Purpose
Changes requirements for real property tax lien sales.
Background
Current statute requires a county treasurer to maintain a record of delinquent taxes, listing the properties, owners of record and the amount of taxes, penalties and interest due. On or before September 1 of each year the county treasurer shall send by mail, to the last known address of each person or firm that owes delinquent taxes, notice that there are delinquent taxes against the real property that is assessed in the taxpayer's name (A.R.S. § 42-18103).
The county treasurer shall advertise and sell the tax lien for the aggregate amount of all unpaid taxes that are delinquent on the property, together with all penalties, interest and charges respectively due for the current or preceding years, whether or not the aggregate amount or any part has been reduced to judgment. The county treasurer shall mail a copy of the notice of proposed sale to the owner of each parcel of property on the delinquent tax list at the owner's last known address (A.R.S. § 42-18104).
A real property tax lien shall be sold to the person who pays the whole amount of delinquent taxes, interest, penalties and charges due on the property, and who in addition offers to accept the lowest rate of interest on the amount so paid to redeem the property from the sale. The lien bears interest at the bid rate from the first day of the month following the purchase of the tax lien (A.R.S. § 42-18114).
The purchaser of a tax lien shall pay the purchase price in cash at the time of sale. If the purchaser fails to pay the amount due, the county treasurer shall resell the tax lien if the sale has not been closed. If the sale has been closed, the county treasurer may either advertise it specially in the manner provided for publishing and posting the original list and notice, or recover the amount bid by civil action in a court of competent jurisdiction (A.R.S. § 42-18116).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the county treasurer to continue a tax lien sale from day to day, until each parcel has been offered for sale and no more bids are offered by purchasers.
2. Requires a purchaser of a tax lien to pay the purchase price in cash at a time the county treasurer determines but within 15 days after the close of the sale, rather than at the close of the sale.
3. Prohibits a purchaser who fails to pay the amount due from purchasing tax liens from any county for a period of not more than one year.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
House Action
WM 2/6/19 DP 10-0-0-0
3rd Read 2/14/19 60-0-0
Prepared by Senate Research
March 4, 2019
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