The Arizona House of Representatives rejected legislation Wednesday that county treasurers say was written to help a wealthy investor avoid a $146,100 administrative fee.

Senate Bill 1071, which would cap how much counties can charge for recording certain property deeds, was defeated in the House on a 30-28 vote.

The bill, sponsored by Sen. Steve Smith, R-Maricopa, was supposed to protect future buyers of tax liens from excessive fees by capping an individual’s bill at $500.

But the Pinal County treasurer said the bill was crafted specifically to benefit Phoenix lawyer and real-estate investor Wayne Howard, who faced a $146,100 fee for recording 2,922 property deeds.

Pinal County Treasurer Dolores “Dodie” Doolittle opposed the bill, along with other county treasurers and the Arizona Association of Counties, which lobbies on behalf of county governments.

“This is a win for taxpayers, who should not have to pick up the costs of assigning deeds for a wealthy investor who is looking for a 99.66 percent discount on fees,” said JenMarson, association executive director. “Of course, no bill is ever truly dead in the Legislature, so we need to be watchful for this special interest bill’s resurrection.”

PREVIOUSLY: Treasurers: Investor behind bill to lower fee

MORE: Arizona bill would limit protections for native plants, saguaros

The bill moved quickly through the state Legislature and faced little opposition until Wednesday, when a story in The Arizona Republic and on azcentral.com generated indignation.

“Call your legislators to vote no on SB 1071,” Dave Wells posted in an online story chat Wednesday. “This bill transfers Wayne Howard’s tax-lien costs to taxpayers – and the current fees charged don’t even cover actual costs the treasurer’s office incurs.”

SB 1071 was supported by the southern and central Arizona homebuilders associations and the Arizona Association of Realtors. Lobbyist Stan Barnes, who was hired by Howard’s company, spoke in favor of the bill and answered questions about in February Senate hearings.

Doolittle said Howard recently sought a waiver of a $50-per-parcel charge required under state law and requested Pinal County bill him a total of $50 for all 2,922 properties.

When the county rejected Howard’s request, Doolittle said he threatened to get the fee reduced another way.

“He said he would go and get the law changed,” Doolittle said.

SB 1071 deals with the purchase of county tax liens. Liens are placed on properties when owners fail to pay property taxes. The liens prevent owners from selling until the taxes are repaid.

Unpaid tax liens can be bought by a third party after three years. The third party can initiate foreclosure proceedings if original property owners don’t pay what they owe along with penalties.

Once the third party obtains a court-ordered judgment on the foreclosure, the third party is required to obtain a deed transferring the property from the debtor to the third party. In 2004, state law increased the fee to $50 from $10 for each deed.

Supporters’ testimony focuses on cutting costs for future buyers of tax liens. But county treasurers say the circumstances occur so rarely that Howard is the only person who benefits.

They also say the bill’s provisions are written specifically for Howard, including a retroactive clause that would apply only to Howard’s 2,922 parcels.

The bill would cover anyone who already has obtained foreclosure judgments and has not yet obtained a treasurer’s deed. That precisely fits Howard’s circumstances, said Jen Marson, executive director of the state counties association.

Records show beginning in 2011, Howard purchased tax liens for parcels of a failed subdivision called Desert Carmel west of Casa Grande. The subdivision is next to the Francisco Grande Hotel and Resort and was planned around the site of the San Francisco Giants’ old spring-training facility.

Records show Howard’s company paid about $865,000 for the tax liens, an average of $296 per parcel.

Marson said there was no stated reason for the $500 cap when the legislation was introduced. She said county officials offered a $25,000 compromise but it was rejected by the bill’s originators.

County treasurers said the current $50 transfer fee for each deed only covers about half of the actual costs associated with processing deeds and transferring the title.

http://www.azcentral.com/story/money/business/consumer/call-12-for-action/2015/03/18/arizona-house-rejects-bill-help-investor-lower-fee/24994067/

The Arizona House of Representatives rejected legislation Wednesday that county treasurers say was written to help a wealthy investor avoid a $146,100 administrative fee.

Senate Bill 1071, which would cap how much counties can charge for recording certain property deeds, was defeated in the House on a 30-28 vote.

The bill, sponsored by Sen. Steve Smith, R-Maricopa, was supposed to protect future buyers of tax liens from excessive fees by capping an individual’s bill at $500.

But the Pinal County treasurer said the bill was crafted specifically to benefit Phoenix lawyer and real-estate investor Wayne Howard, who faced a $146,100 fee for recording 2,922 property deeds.

Pinal County Treasurer Dolores “Dodie” Doolittle opposed the bill, along with other county treasurers and the Arizona Association of Counties, which lobbies on behalf of county governments.

“This is a win for taxpayers, who should not have to pick up the costs of assigning deeds for a wealthy investor who is looking for a 99.66 percent discount on fees,” said JenMarson, association executive director. “Of course, no bill is ever truly dead in the Legislature, so we need to be watchful for this special interest bill’s resurrection.”

PREVIOUSLY: Treasurers: Investor behind bill to lower fee

MORE: Arizona bill would limit protections for native plants, saguaros

The bill moved quickly through the state Legislature and faced little opposition until Wednesday, when a story in The Arizona Republic and on azcentral.com generated indignation.

“Call your legislators to vote no on SB 1071,” Dave Wells posted in an online story chat Wednesday. “This bill transfers Wayne Howard’s tax-lien costs to taxpayers – and the current fees charged don’t even cover actual costs the treasurer’s office incurs.”

SB 1071 was supported by the southern and central Arizona homebuilders associations and the Arizona Association of Realtors. Lobbyist Stan Barnes, who was hired by Howard’s company, spoke in favor of the bill and answered questions about in February Senate hearings.

Doolittle said Howard recently sought a waiver of a $50-per-parcel charge required under state law and requested Pinal County bill him a total of $50 for all 2,922 properties.

When the county rejected Howard’s request, Doolittle said he threatened to get the fee reduced another way.

“He said he would go and get the law changed,” Doolittle said.

SB 1071 deals with the purchase of county tax liens. Liens are placed on properties when owners fail to pay property taxes. The liens prevent owners from selling until the taxes are repaid.

Unpaid tax liens can be bought by a third party after three years. The third party can initiate foreclosure proceedings if original property owners don’t pay what they owe along with penalties.

Once the third party obtains a court-ordered judgment on the foreclosure, the third party is required to obtain a deed transferring the property from the debtor to the third party. In 2004, state law increased the fee to $50 from $10 for each deed.

Supporters’ testimony focuses on cutting costs for future buyers of tax liens. But county treasurers say the circumstances occur so rarely that Howard is the only person who benefits.

They also say the bill’s provisions are written specifically for Howard, including a retroactive clause that would apply only to Howard’s 2,922 parcels.

The bill would cover anyone who already has obtained foreclosure judgments and has not yet obtained a treasurer’s deed. That precisely fits Howard’s circumstances, said Jen Marson, executive director of the state counties association.

Records show beginning in 2011, Howard purchased tax liens for parcels of a failed subdivision called Desert Carmel west of Casa Grande. The subdivision is next to the Francisco Grande Hotel and Resort and was planned around the site of the San Francisco Giants’ old spring-training facility.

Records show Howard’s company paid about $865,000 for the tax liens, an average of $296 per parcel.

Marson said there was no stated reason for the $500 cap when the legislation was introduced. She said county officials offered a $25,000 compromise but it was rejected by the bill’s originators.

County treasurers said the current $50 transfer fee for each deed only covers about half of the actual costs associated with processing deeds and transferring the title.

http://www.azcentral.com/story/money/business/consumer/call-12-for-action/2015/03/18/arizona-house-rejects-bill-help-investor-lower-fee/24994067/