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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
delinquent property tax; interest; waiver
Purpose
Allows a county treasurer, subject to the approval of the county board of supervisors (county BOS), to waive the accrued interest and penalties on delinquent property taxes that occur during the one-year period after a mortgage or deed of trust is satisfied.
Background
One-half of the amount of the taxes on real property and personal property is due on October 1 with the remaining one-half of the taxes due on the following March 1, except if the total amount of taxes due is $100 or less. One-half of the amount of the unpaid taxes is delinquent after November 1 and the remaining one-half that is unpaid is delinquent after the following May 1. If the total amount of taxes is $100 or less, the entire amount of the taxes is due and payable on October 1 and the entire amount that is unpaid is delinquent after December 31 (A.R.S. § 42-18052).
All taxes bear interest from the time of delinquency at the rate of 16 percent per year simple until paid. Interest may not be collected if the delinquency is the result of an error by the county assessor or county treasurer or if the full year tax is paid by December 31 of the tax year, regardless of any other statutorily required due dates for delinquencies of $100 or less (A.R.S. § 42-18053).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a county treasurer, subject to the approval of the county BOS, to waive the interest on delinquent taxes, and any other penalties, for a delinquency that occurs during the one-year period after a mortgage or deed of trust is satisfied or otherwise released on the property.
2. Allows a taxpayer to receive an interest waiver on delinquent taxes only once per property.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
WM 1/20/21 DP 9-1-0-0
3rd Read 2/4/21 59-0-0-0-1
Prepared by Senate Research
March 1, 2021
MG/ML/gs