Arizona · A.R.S. §§42-17302–42-17312Arizona senior tax deferral: the lien to pay off before the contract

An Arizona owner at least 70 years old who has lived in the home at least six years, or in Arizona at least ten, owns no other real property and whose household had taxable income of no more than $10,000 the year before may elect to defer property taxes on a primary, non-income-producing residence with a full cash value of no more than $150,000 and no mortgage recorded within the previous five years (A.R.S. §§42-17302, 42-17303). The county treasurer records a certificate of deferral, which is actual notice of the lien; the lien for deferred taxes and interest attaches on recording and has priority over mortgages and deeds of trust recorded earlier and over later liens (§§42-17306, 42-17308). The deferred taxes, interest and costs become due when the owner dies without a qualifying spouse, when the residence is sold, becomes subject to a fully executed binding contract of sale or is otherwise transferred, when it is no longer the owner's residence, or when it becomes income-producing (§42-17311(A)). A tax-deferred residence may not be transferred unless the deferred amounts are paid in full, and no contract of sale may be executed or title conveyed unless they are paid in full at or before the contract or conveyance (§§42-17311(A)(2), 42-17312(A)). On payment the treasurer records a release of the lien (§42-17312(C)). The assessor's notice of value and the treasurer's tax statement for the parcel carry a notice that the residence is subject to a lien of deferred taxes (§42-17310(B)–(C)).