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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
tax deed land sales; procedures
Purpose
Modifies the procedures for a county board of supervisors (county BOS) to sell tax deeded real property that is held by the state.
Background
After
advertising a tax deeded real property that is held by the state for sale, a
county BOS may sell the tax deeded real property to the highest bidder for
cash, with exceptions. One exception allows the county BOS to sell tax deeded
real property held by the state to the owner of contiguous real property that
is used for residential purposes, if the following conditions apply: 1) both
the property offered for sale and the contiguous property were at one time
under common ownership, or the property offered for sale is part of a common
area maintained by a homeowners' association as determined by the county
assessor; and 2) the property offered for sale cannot be separately used for
residential purposes pursuant to applicable building codes and ordinances due
to its size, configuration or recorded common area restrictions. If there is
more than one contiguous parcel that meets the outlined requirements, the
exception no longer applies (A.R.S. ยงยง 42-18302
and
42-18303).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a county BOS to sell tax-deeded real property that is held by the state to a contiguous agricultural or commercial property owner.
2. Stipulates that, if there is more than one contiguous property owner offering to purchase a contiguous agricultural, commercial or residential property, the county BOS must accept the offer that demonstrates that the owner's property was most recently under common ownership with the sale property.
3. Adds, as a condition for a commercial, agricultural or residential property sale to a contiguous owner, a requirement for the contiguous owner to agree to request the county assessor to jointly assess the properties for property tax purposes.
4. Allows a county BOS to establish procedures for accepting monetary offers for sales of contiguous tax-deeded property.
5. Allows a county BOS to establish procedures for accepting monetary offers and sell tax-deeded real property that is held by the state over the counter, if the property is not eligible for an exception sale or was already offered for sale and not sold at public auction.
6. Allows a county BOS to sell tax deeded real property held by the state directly to a homeowners' association if the property is part of a common area maintained by the association as determined by the county assessor.
7. Stipulates that, if an offer by a homeowners' association is pending at the time of a scheduled public auction, the county BOS must remove the property from the auction.
8. Makes technical and conforming changes.
9. Becomes effective on the general effective date.
Prepared by Senate Research
January 23, 2025
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