It is important for Associations to understand how state tax liens affect your interests and what effect tax lien foreclosure has on your assessment lien. Here is a brief overview of how the Arizona property taxes operate:
- Taxes are due in October: The first half of property taxes are due October 1, and are considered delinquent by November 1 of that year. The second half of the taxes are due March 1 and are considered delinquent by May 1 of the following year. If the taxes remain unpaid, the county treasurer will mail delinquent tax notices.
- Tax liens: Tax liens are a “hold” against your member’s property, superior to all liens except those held by the government. Essentially, members must pay the lien and all associated interest and fees before they are free to sell their property and recoup all the money paid. The lien doesn’t change ownership in and of itself, but one way or another, the government will be paid.
- Redeeming a lien: Redeeming a lien means paying the tax owed, and this can be done by the homeowner (or the owner’s agent or attorney), an heir of the owner or anyone else who has a claim on the property. Money is paid to the county treasurer.
- When a tax lien can lead to foreclosure: A tax lien is subject to foreclosure between three and 10 years after the sale of the lien. The tax lien holder would file in the superior court where the property is located. The homeowner and any interested party must be notified (including any applicable HOA) and given 30 days’ notice. The homeowner may be responsible for attorney fees and costs, and if no one redeems, the foreclosure results in a treasurer’s deed to the tax lien holder.
- How it affects your HOA: As an HOA, tax liens will take precedence over HOA liens, and your HOA lien may be extinguished, depending on the circumstances. You should seek legal advice to clarify if this is the case.
If a tax lien is affecting your, the HOA’s interests, call us today to find out more about potential strategies and pitfalls. Our team here at Goodman Law Group is passionate about supporting homeowners’ associations—and making your life as easy as possible.
Related: HOA’s and Security Risks
Tax lien laws in Arizona
Goodman Law Group exists to make your work of the HOA as easy as possible. For nearly a decade, we’ve worked with homeowners associations statewide to provide a full range of legal services and counsel. We specialize in Arizona HOA legal counsel, and provide tailored help for each of our clients. Are you looking for a homeowners association attorney, or do you have questions about property tax lien laws in Arizona? Contact us today for more information.