Bill Text: AZ SB1135 | 2015 | Fifty-second Legislature 1st Regular | Engrossed
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-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-second Legislature First Regular Session 2015
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SENATE BILL 1135 |
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AN ACT
Amending sections 42‑18056, 42‑18121, 42-18152, 42‑18153, 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; 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 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 in a county that has established an elderly assistance fund pursuant to section 42‑17401, 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 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 receipt to the taxpayer and provide a copy of the receipt to any holder of a certificate of purchase under section 42‑18119. The receipt shall show the principal, interest and fee amounts allocated to the certificate of purchase and the amounts allocated to the elderly assistance fund and the holder of the certificate of purchase as prescribed under section 42-18153, subsection C.
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 sections 42-18153 and 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, or for assignment of a subsequent year certificate of purchase under section 42-18201, subsection b.
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.
Sec. 4. Section 42-18153, Arizona Revised Statutes, is amended to read:
42-18153. Amount required for redemption
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 the difference in the amount of interest prescribed by section 42-18053 and the amount of interest stated in the certificate of purchase.
Sec. 5. 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 partially 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 partially redeem the tax lien, and if the person pays the amount due, the county treasurer shall issue to the person a statement of partial redemption.
D. The partial redemption certificate shall:
1. Describe the parcels on which the tax lien is partially redeemed.
2. State:
(a) The date of partial redemption.
(b) The amount paid.
(c) The principal amount remaining due.
(d) By whom it was partially redeemed.
C. e. For each certificate of redemption 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 each partial redemption or ten dollars for a full redemption where no partial payments were made.
D. f. A holder of a certificate of redemption may record the certificate in the office of the county recorder.
Sec. 6. 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 or the purchase of a subsequent year certificate of purchase by assignment under section 42-18121, subsection C, by the holder of the original certificate of purchase, 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.
Sec. 7. 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).
(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. The county treasurer shall not accept partial payments under section 42‑18056, subsection c, after the date a notice of action to foreclose the right to redeem is received by the treasurer.
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.
