HB2287 - 512R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 40-407, Arizona Revised Statutes, is amended to read:

START_STATUTE40-407. Enforcement of payment; seizure and sale of property

A. If any corporation to which a statement for the amount assessed against it as provided in this article has been rendered fails or refuses to pay the amount within fifteen days, or fails to file with the commission objections to the statement as provided by section 40‑403, the commission shall transmit to the department of public safety a certified copy of the statement of the assessment together with notice of the neglect or refusal of the corporation to pay the amount thereof, and at the same time shall mail to the corporation a copy of the notice transmitted to the department of public safety.

B. Within ten days after receipt of the notice and certified copy of the statement, the department of public safety shall proceed to collect the amount stated to be due, with legal interest, by seizure and sale of any goods or chattels, including stocks, securities, bank accounts, evidences of debt and accounts receivable belonging to the corporation anywhere within the state. The seizure and sale shall be made by the department of public safety, and the proceedings thereunder governed, as nearly as possible, by the provisions of sections 42‑19108 through 42‑19114 42‑19113. END_STATUTE

Sec. 2. Section 42-18201, Arizona Revised Statutes, is amended to read:

START_STATUTE42-18201. Action to foreclose right to redeem

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. END_STATUTE

Sec. 3. Section 42-19113, Arizona Revised Statutes, is amended to read:

START_STATUTE42-19113. Sale

A. The sheriff shall offer the personal property, or as much of the property as is necessary to pay the taxes, interest and costs of sale, at a public sale held at the time fixed in the notices.

B. Any person, including the county, may bid at the sale, and the property shall be sold to the highest bidder for cash.

C. If no bid is made for the property in an amount sufficient to pay the taxes, interest and costs, the sheriff shall sell the property to the county in which the property is assessed the sheriff may execute and deliver a bill of sale conveying the title of the property to the highest bidder, together with the property. END_STATUTE

Sec. 4. Section 42-12052, Arizona Revised Statutes, is amended to read:

START_STATUTE42-12052. Review and verification of class three property; civil penalty; appeals

A. Each county assessor shall review assessment information, on a continuing basis, to ensure proper classification of residential dwellings. The assessor may enter into intergovernmental agreements with the department for an exchange of information to ensure a coordinated and comprehensive review and identification of property that may be rented while classified as class three pursuant to section 42‑12003.

B. If the assessor has reason to believe that a parcel of property that is classified as class three pursuant to section 42‑12003 is not used as the owner's primary residence or as a qualifying family member residence pursuant to section 42‑12053, the assessor shall notify the owner, in a form prescribed by the department as provided by subsection D of this section, and request that the owner respond as to whether the property meets the requirements of section 42‑12003 or 42‑12053, is a secondary residence or is used as a rental property. If the owner fails to respond to the assessor within thirty days after the notice is mailed, the assessor shall mail the owner a final notice within thirty days requesting that the owner provide information as to whether or not the property meets the requirements of a primary residence, a secondary residence or is used as a rental property. If the owner fails to respond to the assessor within fifteen days after the final notice is mailed, the assessor shall:

1. Reclassify the property as class four. In addition to other appeal procedures provided by law, the owner of the property that is reclassified as class four under this paragraph may appeal the reclassification to the county board of supervisors within thirty days after the notice of classification is mailed. If the owner proves to the board's satisfaction that the property is occupied as the owner's primary residence, the board shall order the property to be reclassified as class three property pursuant to section 42‑12003.

2. Notify the county treasurer who shall assess a civil penalty against the property equal to the amount of additional state aid paid pursuant to section 15‑972 with respect to the property in the preceding tax year. The civil penalty shall not be assessed if the ownership of the property has changed after notification. The owner of the property shall pay a penalty under this paragraph to the county treasurer within thirty days after the notice of the penalty is mailed. The owner may appeal the penalty to the county board of supervisors within the time required for payment. If the owner proves to the board's satisfaction that the property is occupied by the owner, the board shall waive the penalty, and the property shall be listed as class three pursuant to section 42‑12003. Until paid or waived, the penalty constitutes a lien against the property. The county treasurer shall deposit all revenue received from penalties assessed under this paragraph in the county general fund.

C. Beginning in 2013 and during each elective term of office thereafter the county assessor shall send notices under subsection B of this section to each owner of property classified as class three pursuant to section 42‑12003 described by any of the following:

1. The owner has a mailing address outside the county in which the property is located.

2. The owner has a mailing address, other than a post office box, that is different than the situs address of the property.

3. The owner has the same mailing address listed for more than one parcel of class three property in this state.

4. The owner appears to be a business entity.

D. The department shall:

1. Prescribe all forms used to notify property owners under this section. The forms shall contain information as to criteria for the reclassification of property and the civil penalties that may result if the owner fails to respond to the notice.

2. Monitor and review the procedures and practices used by assessors and treasurers to accomplish the verification of class three property and the assessment and collection of penalties prescribed by this section and propose suggested improvements to establish uniform processes and performance among the counties.

E. The department may inspect the records of county assessors and county treasurers to determine compliance with the requirements of this section and the accuracy of the classification of owner-occupied residential property and rental property.

Sec. 5. Repeal

Section 42-19114, Arizona Revised Statutes, is repealed.