Read the full stored bill text
Chapter 0066 - 572R - H Ver of SB1067
House Engrossed
Senate Bill
county abatement
liens; notice; priority
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 66
SENATE BILL 1067
AN
ACT
amending section 42-18115, Arizona
Revised Statutes; amending section 42-18115, Arizona Revised Statutes, as
amended by this act; amending section 42-18204, Arizona Revised Statutes;
amending section 42-18204, Arizona Revised Statutes, as amended by this
act; relating to liens.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-18115, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-18115.
Easements and liens not extinguished by sale
A. The sale of a real property tax lien does not
extinguish any easement on or appurtenant to the property.
B. The sale of a real property tax lien does not
extinguish any lien for an assessment levied pursuant to title 48, chapter 4, 6
or 14
,
or section 9-276
or 11-268
.
END_STATUTE
Sec. 2. Section 42-18115, Arizona Revised
Statutes, as amended by section
3
1
of this act,
is amended to read:
START_STATUTE
42-18115.
Easements and liens not extinguished by sale
A. The sale of a real property tax lien does not
extinguish any easement on or appurtenant to the property.
B. The sale of a real property tax lien does not
extinguish any lien for an assessment levied pursuant to title 48, chapter 4, 6
or 14 or section 9-276
or 11-268
.
END_STATUTE
Sec. 3. Section 42-18204, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-18204.
Judgment foreclosing right to redeem; effect
A. In an action to foreclose the right to redeem:
1. If the court finds that the tax lien sale is
valid, the tax lien has not been redeemed and the defendant's request for an
excess proceeds sale is unreasonable or the defendant did not request an excess
proceeds sale, the court shall enter judgment:
(a) Foreclosing the right of the defendant to
redeem.
(b) Directing the county treasurer to expeditiously
execute and deliver to the party in whose favor judgment is entered, including
the state, a deed conveying the property described in the certificate of
purchase.
2. If the court finds that the tax lien sale is
valid, the tax lien has not been redeemed and the defendant's request for an
excess proceeds sale is reasonable, the court shall enter judgment:
(a) Foreclosing the right of the defendant to
redeem.
(b) Directing the sale of the property pursuant to
article 6 of this chapter.
(c) Setting the opening bid for the property as the
total of the amounts described in subsection B, paragraph 1, subdivisions (a),
(b), (c) and (e) of this section and any other reasonable fees as determined by
the court.
B. A property owner whose right to redeem is being
foreclosed may request the court to determine if the sale of the property to
recover excess proceeds is reasonable. The court shall determine
that the sale of the property for excess proceeds is reasonable if the sale
price of the property is likely to be more than $2,500 above the total of the
amounts described in paragraph 1 of this subsection. If a request is
made for an excess proceeds sale, the following information shall be provided
to the court for the purposes of determining if an excess proceeds sale is
reasonable:
1. The certificate of purchase holder shall provide
all of the following:
(a) The costs related to filing the claim to
foreclose the right to redeem, including estimated attorney fees and costs to
be incurred through the date of the excess proceeds sale, if ordered.
(b) The amount for which the real property tax lien
was sold, with interest at a rate of sixteen percent per annum from the date of
the tax lien sale through the date of the excess proceeds sale, if ordered.
(c) The amount of any statutory fees the certificate
of purchase holder paid in connection with the certificate of purchase, except
the processing fee imposed by section 42-18116, subsection C, with
interest at a rate of sixteen percent per annum from the date of the tax lien
sale through the date of the excess proceeds sale, if ordered.
(d) The amount of all other recorded state liens or
encumbrances on the state property as indicated on a title report provided by
the certificate of purchase holder, including other years in which taxes are
delinquent. For the purposes of this subdivision, the certificate of
purchase holder does not have to determine the actual balance owed on any lien
or encumbrance on the property, except for property taxes owed.
(e) The estimated cost of the sale of property
pursuant to article 6 of this chapter.
(f) Any other evidence relating to the value of the
property or objecting to the excess proceeds sale that the certificate of
purchase holder deems necessary.
2. The property owner whose right to redeem is being
foreclosed shall provide a reasonable estimate of the market value of the
property.
C. After entering judgment the parties whose rights
to redeem the tax lien are thereby foreclosed have no further legal or
equitable right, title or interest in the property subject to the right of
appeal and stay of execution as in other civil actions.
D. The foreclosure of the right to redeem does not
extinguish any of the following:
1. An easement on or appurtenant to the property.
2. A lien for an assessment levied pursuant to title
48, chapter 4, 6, 14 or 18 or section 9-276
or 11-268
. For
the purposes of this paragraph, assessment does not include an abatement lien
imposed under section 9-499.
3. If the court finds that the request for an excess
proceeds sale is reasonable, the property owner's interest in the excess
proceeds from the sale of the property pursuant to article 6 of this chapter.
END_STATUTE
Sec. 4. Section 42-18204, Arizona Revised
Statutes, as amended by section 3 of this act, is amended to read:
START_STATUTE
42-18204.
Judgment
foreclosing right to redeem; effect
A. In an action to foreclose the right to redeem:
1. If the court finds that the tax lien sale is
valid, the tax lien has not been redeemed and the defendant's request for an
excess proceeds sale is unreasonable or the defendant did not request an excess
proceeds sale, the court shall enter judgment:
(a) Foreclosing the right of the defendant to
redeem.
(b) Directing the county treasurer to expeditiously
execute and deliver to the party in whose favor judgment is entered, including
the state, a deed conveying the property described in the certificate of
purchase.
2. If the court finds that the tax lien sale is
valid, the tax lien has not been redeemed and the defendant's request for an
excess proceeds sale is reasonable, the court shall enter judgment:
(a) Foreclosing the right of the defendant to
redeem.
(b) Directing the sale of the property pursuant to
article 6 of this chapter.
(c) Setting the opening bid for the property as the
total of the amounts described in subsection B, paragraph 1, subdivisions (a),
(b), (c) and (e) of this section and any other reasonable fees as determined by
the court.
B. A property owner whose right to redeem is being
foreclosed may request the court to determine if the sale of the property to
recover excess proceeds is reasonable. The court shall determine
that the sale of the property for excess proceeds is reasonable if the sale
price of the property is likely to be more than $2,500 above the total of the
amounts described in paragraph 1 of this subsection. If a request is
made for an excess proceeds sale, the following information shall be provided
to the court for the purposes of determining if an excess proceeds sale is
reasonable:
1. The certificate of purchase holder shall provide
all of the following:
(a) The costs related to filing the claim to
foreclose the right to redeem, including estimated attorney fees and costs to
be incurred through the date of the excess proceeds sale, if ordered.
(b) The amount for which the real property tax lien
was sold, with interest at a rate of sixteen percent per annum from the date of
the tax lien sale through the date of the excess proceeds sale, if ordered.
(c) The amount of any statutory fees the certificate
of purchase holder paid in connection with the certificate of purchase, except
the processing fee imposed by section 42-18116, subsection C, with
interest at a rate of sixteen percent per annum from the date of the tax lien
sale through the date of the excess proceeds sale, if ordered.
(d) The amount of all other recorded state liens or
encumbrances on the state property as indicated on a title report provided by
the certificate of purchase holder, including other years in which taxes are
delinquent. For the purposes of this subdivision, the certificate of
purchase holder does not have to determine the actual balance owed on any lien
or encumbrance on the property, except for property taxes owed.
(e) The estimated cost of the sale of property
pursuant to article 6 of this chapter.
(f) Any other evidence relating to the value of the
property or objecting to the excess proceeds sale that the certificate of
purchase holder deems necessary.
2. The property owner whose right to redeem is being
foreclosed shall provide a reasonable estimate of the market value of the
property.
C. After entering judgment the parties whose rights
to redeem the tax lien are thereby foreclosed have no further legal or
equitable right, title or interest in the property subject to the right of
appeal and stay of execution as in other civil actions.
D. The foreclosure of the right to redeem does not
extinguish any of the following:
1. An easement on or appurtenant to the property.
2. A lien for an assessment levied pursuant to title
48, chapter 4, 6, 14 or 18 or section 9-276
or 11-268
. For
the purposes of this paragraph, assessment does not include an abatement lien
imposed under section 9-499.
3. If the court finds that the request for an excess
proceeds sale is reasonable, the property owner's interest in the excess
proceeds from the sale of the property pursuant to article 6 of this chapter.
END_STATUTE
Sec. 5.
Effective date
Section 42-18115, Arizona
Revised Statutes, as amended by section
2
of this act, and section 42-18204, Arizona Revised
Statutes, as amended by section
4
of this act, are effective from and after September 30,
2028.
APPROVED BY THE GOVERNOR MAY 29, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 29, 2026.