HB 787-FN – AS INTRODUCED
2007 SESSION
10/05
HOUSE BILL 787-FN
AN ACT relative to procedures for and requirements applicable to municipal appraisers for property tax purposes.
SPONSORS: Rep. L. Ober, Hills 27; Rep. Renzullo, Hills 27; Rep. Carson, Rock 3; Rep. R. Ober, Hills 27
COMMITTEE: Executive Departments and Administration
This bill adds requirements for the department of revenue administration and businesses doing appraisals on behalf of municipalities concerning the procedures for appraising property for property tax purposes.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0730
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to procedures for and requirements applicable to municipal appraisers for property tax purposes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Duties of Commissioner of Revenue Administration; Assessments. Amend RSA 21-J:3, V to read as follows:
V. Exercise general supervision over the administration of the assessment and taxation laws of the state and over all assessing officers in the performance of their duties, except the board of tax and land appeals, to the end that all assessments of property be made in compliance with the laws of the state and that procedures for reviews and appeals of assessments by individual property taxpayers be implemented in accordance with due process requirements.
2 Department of Revenue Administration; Director of Property Appraisal; Manual. Amend RSA 21-J:9, IV to read as follows:
IV. Preparing a standard appraisal manual which may be used by assessing officials, and holding meetings throughout the state with such officials and persons engaged in the business of making appraisals on behalf of a municipality, to instruct them in improving accuracy and consistency in appraising property and in implementing procedures for reviews and appeals of appraisals. The manual shall include direction on the procedure for the valuation of features of property so that the appraisal of each parcel shall be in compliance with the laws of the state.
3 Appraisals of Property for Ad Valorem Purposes. Amend RSA 21-J:11 to read as follows:
21-J:11 Appraisals of Property for Ad Valorem Tax Purposes.
I.(a) Every person, firm, or corporation intending to engage in the business of making appraisals on behalf of a municipality for tax assessment purposes in this state shall notify the commissioner of that intent in writing. Such business shall show proof sufficient to the commissioner that its procedures for appraisals of property are in compliance with the laws of the state, its employees utilize due diligence in determining the accurate assessment for each parcel of property, and that its methods of valuing features of real property result in reliable, reproducible, and consistent assessments. No person, firm, or corporation engaged in the business of making appraisals of taxable property for municipalities and taxing districts shall:
(1) Enter into any contract or agreement with any town, city, or governmental division without first submitting a copy of the contract or agreement to the commissioner along with the names and qualifications of all personnel to be employed under the contract or agreement for review of the proposed contract or agreement and written recommendations of the department to be made to the municipality within 10 working days of receipt by the department. Any such contract shall contain specific procedures for reviews of appraisals by property taxpayers, hearings for contested appraisals, and compliance with laws and rules governing appeals;
(2) Begin any appraisal work without first submitting a copy of the executed contract or agreement to the commissioner along with the names and qualifications of all personnel to be employed under the contract or agreement.
(b) Any contract or agreement entered into for a reassessment or new assessment ordered by the board of tax and land appeals, pursuant to RSA 71-B, shall be first submitted to the commissioner for examination and approval.
(c) This paragraph shall not apply to municipal employees.
II. The commissioner, at no expense to the municipality, shall monitor appraisals of property and supervise appraisers as follows:
(a) Assure that appraisals comply with all applicable statutes and rules;
(b) Assure that appraisers are complying with the terms of the appraisal contract or agreement;
(c) Review the accuracy of appraisals by inspection, evaluation, and testing, in whole or in part, of data collected by the appraisers; [and]
(d) Oversee the review of appraisal reports, procedures for hearings, and appeals by taxpayers; and
(e) Report to the governing body on the progress and quality of the municipality’s appraisal process.
III. The commissioner shall adopt rules under RSA 541-A relative to the:
(a) Contract or agreement provisions for a full revaluation, a partial revaluation, or a statistical update[; and].
(b) Methodology for inspection, evaluation, and testing of data for the purpose of appraisal monitoring.
(c) Sufficient proof for businesses making appraisals on behalf of municipalities required under subparagraph I(a).
4 Assessment Report. Amend the introductory paragraph of RSA 21-J:11-a, I to read as follows:
I. The commissioner shall report the degree to which assessments of a municipality achieve [substantial] compliance with applicable statutes and rules. The report shall state with specificity any failure of the municipality or a contractor making appraisals on its behalf to achieve reliable, reproducible, and consistent assessments. The commissioner may consider whether:
5 Effective Date. This act shall take effect 60 days after its passage.
LBAO
07-0730
Revised 02/16/07
HB 787 FISCAL NOTE
AN ACT relative to procedures for and requirements applicable to municipal appraisers for property tax purposes.
FISCAL IMPACT:
The New Hampshire Municipal Association states this bill may increase local expenditures by an indeterminable amount in FY 2007 and each year thereafter. There will be no fiscal impact on state and county expenditures or state, county, and local revenue.
METHODOLOGY:
The New Hampshire Municipal Association states this bill amends various statutes relative to the Department of Revenue Administration’s oversight of assessing practices to include additional procedures and requirements as part of its review process. The Association states there may be an increase in costs related to assessing dependent on new requirements the DRA might impose on municipalities, however the costs are indeterminable.
The Department of Revenue Administration states this bill will not require additional staff or result in additional costs.