March 29, 2002 - Treasurers' Legislation Advances to House; Other New Developments

By Mark L. Manoil, Phoenix

House Assigns Treasurers' Bills to Committee. Senate Bills 1040 and 1041 have been assigned to Committees for hearing in the State House. As explained in our February 1, 2002 Alerts, these Bills would provide for authority to the Treasurers to force assignments of earlier year CPs when a later year lien purchaser buys the most recent delinquent tax, and would create a statute of limitations on tax liens. If you are concerned about the effects either or both Bills might have on your investment activity, you are encouraged to contact the members of the House Ways and Means Committee and the Counties and Municipalities Committee in advance of their hearings. The Chair of the Counties and Municipalities Committee, Representative Linda Binder, is a primary co-sponsor on both Bills. Her phone number at the Legislature is (602) 542-5413.
 
Another Bullet Dodged? We recently became aware of another Bill introduced this legislative session that would have affected tax lien investments in Arizona. As originally introduced, Senate Bill 1201 would have decreased the interest on property taxes provided in A.R.S. § 42-18053 from 16% to prime plus 2%. Recently, however, the Senate Committee on Finance amended the Bill by striking it completely and replacing it with a measure that would retroactively provide extensions for proposing and assessing federal tax deficiencies based on consents filed by homebuilders. Now the Bill has nothing more to do with property taxes. It is worthy to note, however, in case its sponsors, Senators Bundgaard and Bennett, resurrect this idea in the future. The fiscal analysis of the bill predicted that it might incentivize taxpayers not to pay their property taxes, leading to higher delinquencies, while it would probably lead to less purchasing by tax lien buyers, thus potentially creating a fiscal squeeze at the local level.
 
The Tax Lien Primer Website Has Moved. Due to the failure of Excite's @Home service, the Arizona Property Tax Lien Primer website has moved to http://members.cox.net/manoil.
 
Arizona Property Tax Liens: Guide to Profit, Protection and Prosecution (the ultimate reference, as local restaurateur Jack Durant used to say, "in my humble opinion") is scheduled for publication in May, 2002. The 280+ page Guide is packed with examples of successful investing techniques, details of how the tax lien sale and foreclosure system works in Arizona, with citations to pertinent legal authority, and useful checklists and forms. Please take a look at the table of contents, the list of illustrations and list of appendices from the book at http://members.cox.net/manoil/newbook.htm.  Special pricing applies to paid orders received on or before April 15th!!

Mark L. Manoil
Carson Messinger Elliott Laughlin & Ragan, PLLC
3300 North Central Avenue, 19th Floor
Phoenix, AZ 85012
602-264-2261

Arizona Property Tax Lien Primer: http://members.cox.net/manoil

 The information presented in this communication is not intended as legal advice, nor does this communication establish an attorney-client relationship. The opinions expressed are those solely of Mark Manoil, unless otherwise noted. I specifically disclaim any liability for any reader's detrimental reliance on the information and views presented herein. If you need professional advice, please contact a competent professional.

© 2002 Mark L. Manoil

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