CHAPTER 184
HB 803 – FINAL VERSION
27Mar2007… 0820h
2007 SESSION
10/05
HOUSE BILL 803
AN ACT relative to the sale of tax-deeded property.
SPONSORS: Rep. Stohl, Coos 1; Rep. Patten, Carr 4; Rep. Theberge, Coos 4; Sen. Gallus, Dist 1
COMMITTEE: Municipal and County Government
This bill clarifies the procedure for notice to a former owner of tax-deeded property and distribution of proceeds.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
27Mar2007… 0820h
07-0477
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to the sale of tax-deeded property.
Be it Enacted by the Senate and House of Representatives in General Court convened:
184:1 Tax Deeded Property; Distribution of Proceeds. Amend RSA 80:88 to read as follows:
80:88 Distribution of Proceeds From the Sale of Tax-Deeded Property.
I. Notwithstanding any other provision of law, for any sale by a municipality of property which is acquired by tax deed on or after the effective date of this section, the municipality’s recovery of proceeds from the sale shall be limited to back taxes, interest, costs and penalty, as defined in RSA 80:90.
II. If there are excess proceeds over and above the amount of municipal recovery permitted under paragraph I[, then]:
(a) Within 60 days of settlement by the purchaser or purchasers of the property sold, the municipality shall file a bill of interpleader with the superior court for the county in which the property is located, naming the former owner or owners, and all persons having a recorded interest in the property as defendants, and paying to the court all amounts over and above those entitled to be retained.
(b) The municipality shall also be entitled to retain its reasonable costs and attorneys’ fees for the preparation and filing of the petition.
(c) The court shall issue such orders of notice as are necessary, and shall make such disposition of the funds as it finds appropriate, based upon ownership and lienholder interests at the time of the tax deed.
(d) The municipality shall be deemed to have a continuing interest in said funds, and in default of valid claims made by other parties, such funds shall be decreed to be the property of the municipality, free and clear of any remaining liability.
III. No bill of interpleader shall be necessary under subparagraph II(a) if, at the time of the tax deed execution, there were no record lienholders, and only one record owner or joint owners, and such former owner or owners are easily identified and located, in which case the excess proceeds shall be paid to such owner or owners.
184:2 Notice to Former Owner. Amend RSA 80:89, I to read as follows:
I. [Between 120 and] At least 90 days prior to the offering for sale [or conveyance] by a municipality of property which is acquired by tax deed on or after the effective date of this section, the municipal governing body or its designee shall send notice by certified mail, address service requested, return receipt requested, to the last known post office address of the owner of the property at the time of the tax deed, if known, or to the person to whom notice of the impending tax deed was given under RSA 80:77. The notice shall set forth the terms of the offering and the right of the former owner or owners to repurchase the property, as set forth in paragraph II. Copies of any such notice shall also be sent by certified mail, return receipt requested, to any mortgagee to whom notice of the impending tax deed was sent under RSA 80:77-a. For any notice sent pursuant to this paragraph, $10 may be added to the municipality’s “costs’’ as defined in RSA 80:90. In this section, an “offering for sale” means the authorization by the municipality’s governing body to its designee to sell the property.
184:3 Termination of Right. Amend RSA 80:89, VII and VIII to read as follows:
VII. [For purposes of this section, the date of sale or conveyance of the property shall mean the date the municipality enters into a binding contract to convey the property to a third party buyer, whether or not such contract is subject to any contingencies.
VIII.] The duty of the municipality to notify former owners and to distribute proceeds pursuant to RSA 80:88, and the former owners’ right of repurchase under [RSA 80:89,] this section shall terminate 3 years after the date of recording of the deed.
184:4 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 18, 2007
Effective: August 17, 2007