SB1431 is a bill that amends the process for foreclosing the right to redeem a property tax lien, specifically by introducing a procedure for an excess proceeds property sale. This type of sale is considered when a court finds it reasonable, upon a defendant's request, and involves a public auction with specific rules for notification, bid payment, and distribution of proceeds. The bill increases the minimum proceeds that justify an excess proceeds sale to $2,500 and adds a special master to the definition of a "qualified entity." It also extinguishes other state liens on the property sold, although the taxpayer's other properties and unsatisfied liens remain unaffected.

The bill makes several technical and clarifying changes to the Arizona Revised Statutes, including replacing "purchaser" with "certificate of purchase holder" to better define the parties involved in tax lien sales. It creates a new Article 6 in Title 42, Chapter 18, detailing the excess proceeds sale process and the roles of qualified entities. The bill mandates that interested parties be notified of their right to request an excess proceeds sale and outlines the distribution of proceeds, prioritizing sale costs, payment to the certificate holder, redemption of other tax liens, and any remaining funds to the foreclosed property owner. The bill requires that sales be held within 60 days of the sale notice and applies to actions filed after its effective date.

Statutes affected:
Introduced Version: 42-18152, 42-18204, 42-18205, 42-18056, 42-18116, 9-276, 9-499
Senate Engrossed Version: 12-1551, 42-18152, 42-18202, 42-18204, 42-18205, 42-18206, 12-1612, 13-805, 42-18056, 42-18201, 42-13051, 42-18116, 9-276, 9-499, 12-1191
House Engrossed Version: 12-1551, 42-18152, 42-18202, 42-18204, 42-18205, 42-18206, 12-1612, 13-805, 42-18056, 42-18201, 42-13051, 42-18116, 9-276, 9-499, 12-1191
Chaptered Version: 12-1551, 42-18152, 42-18202, 42-18204, 42-18205, 42-18206, 12-1612, 13-805, 42-18056, 42-18201, 42-13051, 42-18116, 9-276, 9-499, 12-1191