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LD 1895

An Act To Require The Removal From A Property Tax Lien The Name Of A Previous Owner Who Paid Prorated Property Taxes

132nd Legislature (2025-2026) Introduced by Amy Arata and 9 co-sponsors

Requires removing a former owner's name from a property tax lien once prorated taxes are paid, clarifying liens for buyers and easing title searches.

Signed by Governor
#liensanddischarges #ownerofrecord #propertytaxprocedures
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Bill Summary · LD 1895

Summary — LD 1895

An Act To Require The Removal From A Property Tax Lien The Name Of A Previous Owner Who Paid Prorated Property Taxes

Purpose

LD 1895 requires that the name of a prior owner be removed from a property tax lien when that prior owner has paid the prorated share of property taxes attributable to them. The intent is to clarify lien records after a transfer of ownership and reduce the risk that a former owner remains listed on a lien despite having satisfied their tax obligation.

Key provisions (based on bill title and legislative materials)

  • Establishes a requirement that a previous owner’s name be removed from any property tax lien if the previous owner has paid their prorated property tax amount.
  • Presumably directs the municipal official(s) responsible for tax lien records (tax collector/treasurer or equivalent) to update lien documentation to remove the former owner’s name once proof of payment is provided.
  • Clarifies the relationship between owner-of-record listings on liens and actual tax liability when prorated taxes have been paid at closing or otherwise.
  • Committee Amendment “A” (H‑619) was adopted; the summary materials do not provide the amendment’s text, but the amendment was incorporated into the enacted version.

(Note: The legislative summary and fiscal notes provided do not include the statutory language. The above describes the bill’s operative purpose and likely administrative effect as reflected in the title and actions.)

Who is affected

  • Previous owners who paid prorated taxes at time of sale — will no longer appear on a lien record for taxes they already paid.
  • New owners/buyers and title companies — clearer lien records should simplify title searches and closings.
  • Municipal tax collectors/treasurers and clerks — may be required to remove former owner names from lien records and retain proof of prorated payment.
  • Lenders and other parties relying on lien records — may experience fewer clouded title issues.

Legislative timeline & status

  • Introduced: May 1, 2025
  • Committee: Referred to Taxation; Work session and OTP‑AM on May 21, 2025
  • Passed: Legislature concurred and passed to be enacted June 11, 2025 (Committee Amendment A adopted)
  • Signed by Governor: June 18, 2025 (enacted)

Fiscal impact

  • Fiscal notes for both the original and amended versions report “No fiscal impact.”

Notes / Uncertainties

  • The bill title and summaries provided describe the requirement but do not include the exact statutory language or specify detailed procedures (e.g., required proof, timeframes for municipal action, filing mechanics).
  • The effective date of the law is not specified in the materials provided; consult the enacted statute or Secretary of State publication for the exact effective date and implementing details.

Compiled from official sources — confirm details with the bill’s official record.

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