HB 1283-LOCAL – AS INTRODUCED
2008 SESSION
09/10
HOUSE BILL 1283-LOCAL
AN ACT relative to temporary deferrals of property tax based on income.
SPONSORS: Rep. Drisko, Hills 5; Rep. Gargasz, Hills 5
COMMITTEE: Municipal and County Government
This bill establishes an option for temporary deferral of local property taxes based on income.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2077
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to temporary deferrals of property tax based on income.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Temporary Deferral of Tax Based on Income. Amend RSA 72 by inserting after section 74 the following new subdivision:
Temporary Deferral of Tax Based on Income
72:75 Temporary Deferral of Tax Based on Income.
I.(a) Each town or city may adopt under paragraph II, a deferral of a portion of the net property tax on the principal residence in an amount which exceeds 10 percent of the property taxpayer’s adjusted gross income as shown on the taxpayers’ federal income tax return for the prior year. In no case shall the total amount of deferred property tax exceed 50 percent of the taxpayer’s equity in the property. For purposes of this paragraph, “equity” means the assessed value of the property minus any existing mortgages, liens, or other outside interests on the property.
(b) Towns and cities may borrow an amount up to the total amount deferred to prevent additional costs to other taxpayers within the town or city granting the deferrals. Repayment of the amount deferred may occur at any time and shall occur within 60 days of the sale of the property on which property tax was deferred or within a 5-year period if the taxpayer’s adjusted gross income increases in an amount which disqualifies the taxpayer for a deferral under subparagraph (a), or as determined in paragraph VI when the owner of a property subject to the deferral dies. Repayment of the amount shall include payment of interest in an amount to be determined by the town or city which compensates the town or city for the cost of borrowing and its administrative costs.
II.(a) Any town or city may adopt the provisions of paragraph I in the following manner:
(1) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3.
(2) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such municipality may vote to place the question on the official ballot for any regular municipal election.
(b) The vote shall specify the provisions of the deferral, as listed in paragraph I. If a majority of those voting on the question vote “yes,’’ the deferral shall take effect within the town or city, on the date set by the governing body, or in the tax year beginning April 1 following its adoption, whichever shall occur first.
(c) A municipality may modify, if applicable, or rescind the deferral provided in paragraph I in the manner described in this section.
(d) A law which makes a change in the provisions of paragraph I shall apply in a municipality which previously adopted the provisions of paragraph I only after the municipality complies with the procedure in this section, unless otherwise expressly required by law.
III. A tax deferral shall be subject to any prior liens on the property and shall be treated as such in any foreclosure or bankruptcy proceeding.
IV. No person shall be entitled to the deferral under this section unless the person annually files with the selectmen or assessors, by March 1 following the date of notice of tax under RSA 72:1-d, an application, signed under penalty of perjury, on a form approved and provided by the commissioner of revenue administration, showing that the applicant is the true and lawful owner of the property on which the deferral is claimed and that the applicant is duly qualified at the time of application. The application shall include a copy of the applicant’s federal income tax return for the prior year. Any person who changes residence after filing such a permanent application shall file an amended permanent application on or before December 1 immediately following the change of residence. The form shall include the following and such other information deemed necessary by the commissioner:
(a) Instructions on completing and filing the form, including an explanation of the grounds for requesting a deferral.
(b) Sections for information concerning the applicant, the property for which the relief is sought, and other properties owned by the person applying.
(c) A section explaining the appeal procedure and stating the appeal deadline in the event the municipality denies the deferral in whole or in part.
(d) A place for the applicant’s signature with a certification by the person applying that the application has a good faith basis and the facts in the application are true.
V. If the property is subject to a mortgage, the owner must have the mortgage holder’s approval of the tax deferral. Such approval does not grant the town a preferential lien.
VI. When the owner of a property subject to a tax deferral dies, the heirs, heirs-at-law, assignee, or devisee shall have first priority to redeem the estate by paying in full the deferred taxes plus any interest due. If the heirs, heirs-at-law, assignees, or devisees do not redeem the property within 9 months of the date of death of the property owner, the municipality may commit the accrued amount of the deferral to the collector of taxes with a warrant signed by the assessing officials requiring him or her to collect it; and the collector of taxes shall have the same rights and remedies in relation thereto as provided in RSA 76:13 and RSA 80. Prior to holding a tax sale or executing a priority tax lien under RSA 80:59, the collector shall, at least 30 days prior to such tax sale or tax lien execution, send notice by certified or registered mail, to the last known post office address of the current owner, if known, or to the last known address of the deceased taxpayer, and to all mortgagees from whom permission has been sought pursuant to paragraph III of this section. Any person with a legal interest in the property may redeem it, either prior to the tax sale or tax lien execution, or subsequently as set forth in RSA 80:32 or RSA 80:69.
VII. The assessing officials shall file notice of each tax deferral granted, within 30 days, with the registry of deeds of the county in which the property is located to perfect it.
VIII. When a taxpayer appeals the denial of a deferral application to the superior court or board of tax and land appeals, the court or board may reverse or affirm, wholly or partly, or may modify the decision brought up for review when there is an error of law or when the court or board is persuaded by the balance of probabilities, on the evidence before it, that said decision is unreasonable.
2 Investigations of Applications. Amend RSA 72:34, I to read as follows:
I. On receipt of an application provided for in RSA 72:33 [or], RSA 72:38-a, or RSA 72:75, the selectmen or assessors shall examine it as to the right to the tax exemption, tax deferral or tax credit, the ownership of the property listed, and, if necessary, the encumbrances reported.
3 Appeal From Refusal to Grant Deferral. Amend RSA 72:34-a to read as follows:
72:34-a Appeal From Refusal to Grant Exemption, Deferral, or Tax Credit. Whenever the selectmen or assessors refuse to grant an applicant an exemption, deferral, or tax credit to which the applicant may be entitled under the provisions of RSA 72:23, 23-d, 23-e, 23-f, 23-g, 23-h, 23-i, 23-j, 23-k, 28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-b, 41, 42, 62, 66, [or] 70, or 75, the applicant may appeal in writing, on or before September 1 following the date of notice of tax under RSA 72:1-d, to the board of tax and land appeals or the superior court, which may order an exemption, deferral, or tax credit, or an abatement if a tax has been assessed.
4 Effective Date. This act shall take effect upon its passage.