PREFILED JAN 13 2025
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REFERENCE TITLE: right to redeem; foreclosure; prohibition |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HB 2107 |
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Introduced by Representatives Biasiucci: Willoughby
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An Act
amending section 42-18201, Arizona Revised Statutes; relating to property tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-18201, Arizona Revised Statutes, is amended to read:
42-18201. Action to foreclose right to redeem; subsequent certificates of purchase by assignment; prohibition
A. Except as provided in subsection B or C of this section, 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 certificate of purchase holder or the purchaser's certificate of purchase holder'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 in this subsection is extended twelve months following the termination of such prohibition.
B. subject to subsection C of this section, for a subsequent year certificate of purchase by assignment issued under section 42-18121, subsection B, at any time beginning three years after the date the subsequent year certificate of purchase was assigned 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 certificate of purchase holder or the purchaser's certificate of purchase holder's heirs or assigns, or the state if it is the assignee, may bring an action to foreclose the right to redeem the lien represented by certificates of purchase acquired by assignment and held by the party that filed the action to foreclose. All certificates of purchase held by other parties remain in place. 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 in this subsection shall be is extended twelve months following the termination of the prohibition.
C. A certificate of purchase holder or the certificate of purchase holder's heirs or assigns, or the state if it is the assignee, may not bring an action to foreclose the right to redeem if the real property is the property owner's primary residence as described in section 42-12053. The county treasurer may, or on request of the certificate of purchase holder or the certificate of purchase holder's heirs or assigns, or of the state if it is the assignee, shall, recover the amount required for redemption under section 42-18153 by any of the following methods:
1. requesting a setoff for debts pursuant to section 42-1122.
2. Garnishing earnings pursuant to title 12, chapter 9, article 4.1.
3. Entering into a payment plan agreement with the property owner.
4. any other method prescribed by law.
Sec. 2. Applicability
This act applies to tax liens sold from and after the effective date of this act.