Bill > HB1273

This bill modifies Arkansas state law regarding tax liens, specifically addressing the legal priority of a Certificate of Indebtedness (COI) issued by the Secretary of the Department of Finance and Administration. Currently, a COI creates a lien that is superior to most other liens when entered on the judgment docket. The bill proposes to change this by explicitly stating that a COI lien will not be superior to a purchase money mortgage. A purchase money mortgage is a type of loan used specifically to buy a property, where the mortgage is directly tied to the property's purchase. By making this change, the bill ensures that when a taxpayer has both a tax debt (represented by the COI) and a purchase money mortgage, the mortgage will take precedence in terms of legal claim to the property. This modification provides additional protection for property owners by preventing tax liens from automatically superseding mortgages used to acquire the property, which could potentially help preserve homeownership in situations of tax debt.

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https://arkleg.state.ar.us/Bills/Detail?id=hb1273&ddBienniumSession=2025%2F2025R