On April 23 Arizona Governor Katie Hobbs signed into law SB 1431, which will add a new article to Arizona’s tax collection and enforcement laws. The bill provides for a new alternative post-judgment sale mechanism to give delinquent taxpayers an opportunity to access their equity in the property after satisfying property tax liabilities, including interest at 16%, penalties, and legal expenses of the foreclosure action and the post-judgment sale process. The bill includes significant benefits for property tax investors as well, including explicit recovery of title report charges and enhanced recovery of legal expenses in traditional redemption cases.

The law will apply to cases filed after the effective date, which will be 90 days after final adjournment of the current legislative session. Passing both houses of the legislature with practically unanimous votes, the bill resulted from strong leadership of the county treasurers in collaboration with the investor community’s representatives, including NTLA members.