MOHAVE COUNTY – On May 3, , the Governor of Arizona signed Senate Bill 1033 (SB1033) into law which changes how property taxes are billed to owners with mortgaged properties. SB1033 deals with property that is valued by the county assessor and subject to taxation by the county treasurer. It is specific to mortgaged property and the mortgagee (lender/bank) pays the property taxes on behalf of the mortgagor (owner/borrower).
What This Change Means To You
Most lenders require taxes to be escrowed as part of loan agreements and handle payment of these taxes for the borrower. If you have a mortgage on your property that pays property taxes on your behalf (escrowed funds), you most likely have not received a property tax statement in the past. That is because the loan holder (lender/bank) sends a list of properties the lender will be paying property taxes on the owners’ behalf and the treasurer’s office deals directly with the lender.
SB1033 requires that the owner/borrower for these properties receive a printed statement of taxes due on the property. Most importantly, be mindful that the property owner is ultimately responsible for paying property taxes, regardless of whether or not they receive a tax statement in the mail. While SB1033 does impose additional communication requirements on the bank/lender, it does not relieve owners of their property tax responsibilities as a property owner.
For any questions that arise regarding the annual tax statement, mortgagors (owner/borrower) should reach out to their respective mortgagee (lender/bank) for clarification.
As a reminder, 2019 property tax statements will be mailed out prior to October 1. First half tax payments for real and personal property become delinquent on November 1. There are some exceptions to this delinquent date based on the amount of the property tax and if you plan to pay your property taxes in full by December 31. For more information regarding property taxes, please visit http://www.mohavecounty.us under the Treasurer’s webpage.
