Lien for Taxes

A lien against the assessed property secures payment of taxes. The lien attaches on January 1 of the tax year. It has priority over all other liens on the same property, except liens held by the state and property tax liens for other years.

Tax Lien Sales

On or before December 31 of each year, the Arizona County Treasurer publishes a list of all properties with unpaid taxes for prior years together with a notice that the treasurer intends to sell the properties at public auction (A.R.S. Section 42-18106). The county also mails a notice to the property owner. Tax sales are held in February of each year on the day designated in the published notice. Maricopa County and some other counties conduct lien auctions entirely over the Internet.

Redemption of Tax Liens

The owner or any person with a legal or equitable interest in the property may pay the delinquent taxes, interest and penalties to remove (redeem) the tax lien (A.R.S. Section 42-18151). Failure to redeem a tax lien within three years after the date of the tax lien sale can result in a loss of the property to foreclosure.

Tax Lien Foreclosure

Not sooner than three years or later than 10 years after a tax lien sale, the holder of the tax lien can file a lawsuit to foreclose the owner’s redemption right (A.R.S. Section 42-18201). Upon entry of a judgment, the County Treasurer will issue a deed conveying the property to the tax lien holder.

Conveyance to State

The county assigns to the state all tax liens not purchased at the tax lien auction. Future taxes on the property don’t become payable until a resale of the certificate or a sale or redemption of the property. County treasurers will resell tax liens assigned to the state to a purchaser who pays the entire amount then due under the certificate and taxes subsequently assessed against the same property. The state can obtain a treasurer’s deed after five years if the tax lien is not redeemed.