§ 26-18-701 — Issuance of certificates of indebtedness and execution

(a) (1) (A) (i) The Secretary of the Department of Finance and Administration shall, as soon as practicable, issue to the circuit clerk of any county of the state a certificate of indebtedness certifying that the taxpayer named in the certificate of indebtedness is indebted to the state for the amount of a tax deficiency assessed by the secretary if: (a) The taxpayer fails to timely and properly protest the assessment under § 26-18-404 or file a petition under the Independent Tax Appeals Commission Act, § 26-18-1101 et seq., and fails to pay the assessed tax upon notice and demand for payment; or (b) The assessment is sustained by the secretary under § 26-18-405 or by the Tax Appeals Commission under the Independent Tax Appeals Commission Act, § 26-18-1101 et seq., and the taxpayer fails to pay the assessed deficiency upon notice and demand for payment. (ii) (a) The secretary may publish an electronic copy of a certificate of indebtedness issued under subdivision (a)(1)(A)(i) of this section on the official website maintained by the secretary. (b) The secretary shall remove an electronic copy of a certificate of indebtedness published under subdivision (a)(1)(A)(ii) (a) of this section upon: (1) Satisfaction of the underlying indebtedness that is the subject of the certificate of indebtedness; and (2) The issuance of a release of the certificate of indebtedness on the records of the circuit clerk. (B) (i) If a taxpayer has a delinquent tax liability to the State of Arkansas of less than one thousand dollars ($1,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments. (ii) The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that it is in the best interest of the state. (C) (i) If a taxpayer has a total delinquent individual income tax liability to the State of Arkansas of less than two thousand dollars ($2,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments if: (a) The installment agreement is for a period of twelve (12) months or less; and (b) The installments are to be paid electronically. (ii) The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that the issuance of a certificate of indebtedness is not in the best interest of the state. (2) The circuit clerk shall enter immediately upon the circuit court judgment docket: (A) The name of the delinquent taxpayer; (B) The amount certified as being due; (C) The name of the tax; and (D) The date of entry upon the judgment docket. (3) (A) (i) The entry of the certificate of indebtedness shall have the same force and effect as the entry of a judgment rendered by the circuit court. (ii) This entry shall constitute the state's lien upon the title of any real and personal property of the taxpayer in the county where the certificate of indebtedness is recorded. (B) This lien is: (i) In addition to any other lien existing in favor of the state to secure payment of taxes, applicable interest, penalties, and costs, including any costs the circuit clerk is entitled to receive as provided by law for either the filing or the release of this lien; and (ii) Superior to: (a) Other liens of any type or character attaching to the property after the date of entry of the certificate of indebtedness on the judgment docket; and (b) All claims of unsecured creditors. (C) (i) (a) The certificate of indebtedness authorized by this subsection shall continue in force for ten (10) years from the date of recording and shall automatically expire after the ten-year period has run. (b) An action on the lien on the certificate of indebtedness shall be commenced within ten (10) years after the date of recording of the certificate, and not afterward. (c) The secretary shall not be required to file a release on a lien which has expired, and the provisions of § 26-18-808 dealing with failure to release liens are not applicable to this section. (d) The provisions of this subsection are applicable to both liens already on file and all future filings of liens. (ii) A bankruptcy filing by a taxpayer tolls the ten-year period for certificates of indebtedness under subdivision (a)(3)(C)(i) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case. (iii) The secretary may file another lien to secure a tax delinquency if: (a) The secretary is required to release an inadvertently filed lien because the filing of a bankruptcy case has stayed collection activity; and (b) There is no subsequent discharge of the tax delinquency. (4) The lien authorized by this section arises at the time the secretary makes the assessment and continues until the taxpayer satisfies the assessment or the lien becomes unenforceable by operation of law. (b) (1) After entry of the certificate of indebtedness, the circuit clerk shall issue a writ of execution directed to the secretary, authorizing the secretary to levy upon and against all real and personal property of the taxpayer. (2) The secretary shall have all remedies and may take all proceedings for the collection of the tax which may be taken for the recovery of a judgment at law. (3) The writ of execution shall be issued, served, and executed in the same manner as provided for in the issuance and service of executions rendered by the circuit courts of this state, except the secretary shall act in the place of the county sheriffs. (4) The secretary shall have this authority for all liens either presently filed or filed after the passage of this act. (c) (1) Nothing in this chapter shall preclude the secretary from resorting to any other means provided by law for collecting delinquent taxes. (2) The issuance of a certificate of indebtedness, entry by the circuit clerk, and levy of execution as provided in this section shall not constitute an election of remedies with respect to the collection of the tax. (3) The taxes, interest, penalties, and fees, including any costs the circuit clerk is entitled to receive as provided by law in these matters, imposed or levied by any state tax law, when due, may be collected in the same way as a personal debt of the taxpayer. (4) In the name of the state, the secretary may sue to the same effect and extent as for the enforcement of a right of action for debt. (5) All provisional remedies available in these actions are available to the State of Arkansas in the enforcement of the payment of any state tax. (d) (1) (A) In addition to the remedies provided in subsections (b) and (c) of this section, the secretary may direct the circuit clerk to issue a writ of execution directed to the county sheriff of any county authorizing the county sheriff to levy upon and against all real and personal property of the taxpayer. (B) The writ of execution shall be issued, served, and executed in the same manner as provided for in the issuance and service of executions rendered by the circuit courts of this state. (2) (A) The circuit clerk and county sheriff shall be entitled to receive the same fees provided by law in these matters. (B) These fees shall be collected from the taxpayer by either the secretary or the county sheriff in addition to the tax, penalties, and interest included in the certificate of indebtedness. (C) If the county sheriff is unable after diligent effort to collect the tax, interest, penalties, and costs, the secretary may pay such fees as are properly shown to be due to the circuit clerk and county sheriff. (e) The secretary may contract with persons inside or outside the state to help the secretary collect delinquencies of resident or nonresident taxpayers.

Legislative History

Amended by Act 2021, No. 593,§ 19, eff. 1/1/2023. Amended by Act 2019, No. 760,§ 3, eff. for tax years beginning on or after 1/1/2020. Amended by Act 2019, No. 760,§ 2, eff. for tax years beginning on or after 1/1/2020. Amended by Act 2019, No. 864,§ 1, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 3635, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3634, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3633, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3632, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3631, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3630, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3629, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3628, eff. 7/1/2019. Amended by Act 2013, No. 160,§ 1, eff. 8/16/2013. Acts 1979, No. 401, § 23; A.S.A. 1947, § 84-4723; Acts 1989, No. 590, § 3; 1993, No. 1236, § 1; 2003, No. 1085, §§ 1, 2.