HB1515 (2012) Detail

Relative to the assessment of the land use change tax and the use of land use change tax revenues.


HB 1515-FN-LOCAL – AS INTRODUCED

2012 SESSION

12-2008

10/09

HOUSE BILL 1515-FN-LOCAL

AN ACT relative to the assessment of the land use change tax and the use of land use change tax revenues.

SPONSORS: Rep. Hansen, Hills 6; Rep. Cohn, Merr 6; Rep. LeBrun, Hills 26; Rep. Antosz, RockĀ 9; Rep. W. Hutchinson, Hills 9

COMMITTEE: Municipal and County Government

ANALYSIS

This bill changes the tax collection procedures for the current use land use change tax, adds failure to pay property taxes and failure to notify of a qualifying use change to the actions which trigger the land use change tax, and requires all municipal land use change tax revenues to be recognized as general fund revenue.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2008

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT relative to the assessment of the land use change tax and the use of land use change tax revenues.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Current Use; Land Use Change Tax; Reference Added. Amend RSA 79-A:7, I-a to read as follows:

I-a. Land which is classified as open space land and assessed at current use values shall be assessed at current use values until a change in land use occurs pursuant to RSA 79-A:7, IV, V, [or] VI, or VII.

2 Land Use Change Tax; Assessment; Collection Procedure. Amend RSA 79-A:7, II(d) and (e) to read as follows:

(d) Payment of the land use change tax, together with the recording fees due the register of deeds, shall be due not later than 30 days after mailing of the tax bills for such tax, and [interest at the rate of 18 percent per annum shall be due thereafter on] any taxes not paid within the 30-day period shall be subject to collection as provided in subparagraph II(e).

(e) All land use change tax assessments levied under this section shall, on the date of the change in use, create a lien upon the lands on account of which they are made and against the owner of record of such land or against the responsible party pursuant to RSA 79-A:7, VI(e). Furthermore, such liens shall continue for a period of 18 months following the date upon which the local assessing officials receive written notice of the change of use from the landowner or his agent, or the date the local assessing officials actually discover that the land use change tax is due and payable, and such assessment shall be subject to statutory collection proceedings against real estate [as prescribed by] in RSA 80, except that any redemption period under RSA 80 shall be limited to 30 days after the due date for the tax bill after which period the lien shall not be subject to redemption but shall be executed by deed to the municipality. In the alternative the tax lien may be enforced by suit as provided in RSA 80:50 or by distraint proceedings as provided in RSA 80:8.

3 New Subparagraph; Land Use Change Tax; Late Tax Payment. Amend RSA 79-A:7, IV by inserting after subparagraph (c) the following new subparagraph:

(d) The owner fails to fully pay property taxes assessed on the open space land assessed at current use values within 30 days of the date of notice of tax as defined in RSA 76:1-a.

4 Qualifying Change in Use; Exception Added. Amend RSA 79-A:7, VI(c) to read as follows:

(c) Land accorded current use assessment in one category is changed in use to any other qualifying category, except as provided in paragraph VII.

5 Qualifying Change in Use; Failure to Notify. Amend RSA 79-A:7, VII to read as follows:

VII. When land which is accorded current use assessment in one category is changed in use to any other qualifying category as provided in subparagraph VI(c), the owner of the land shall notify the local assessing officials in writing of the change in use [at] within 30 days of the time that the change in use is made. If a land owner fails to provide the notice required under this paragraph, [he may be fined not more than $50 at the discretion of the town or city] the land shall be considered changed in use and shall be subject to the assessment of the land use change tax for the land.

6 Land Use Change Taxes; Disposition of Revenues. RSA 79-A:25 is repealed and reenacted to read as follows:

79-A:25 Disposition of Revenues.

I. All money received by the tax collector pursuant to the provisions of this chapter shall be for the use of the town or city.

II. Revenues received under this chapter shall be deemed general fund revenues but shall not be expended for any purpose or transferred to any appropriation until such time as the legislative body shall have had the opportunity to appropriate a specific amount for any purpose not prohibited by the laws or by the constitution of this state. Any unappropriated balance of land use change tax revenue received during the prior fiscal year shall be recognized as general fund revenue for the current fiscal year.

III. In any town or city that previously adopted the requirement to place a percentage of revenues in the conservation fund, such requirement shall not apply to any land use change tax revenues received after July 1, 2012.

7 Collection of Taxes; Lien Procedure; Land Use Change Tax. Amend RSA 80:85 to read as follows:

80:85 Lien Procedure; Land Use Change Tax. All land use change tax assessments levied under RSA 79-A:7 shall, on the date of the change in use, create a lien upon the lands on account of which they are made and against the owner of record of the said land. Furthermore, such liens shall continue for a period of 18 months following the date upon which the local assessing officials receive written notice of the change in use from the landowner or his or her agent, or the date upon which the local assessing officials actually discover that the land use change tax is due and payable, and such assessment shall be subject to the real estate tax lien procedure by the tax collector prescribed by RSA [80:59]79-A:7, II.

8 Repeal. The following are repealed:

I. RSA 79-A:25-a, relative to a separate land use change tax fund.

II. RSA 79-A:25-b, relative to procedure for adoption of the land use change tax fund.

III. RSA 36-A:5, III, relative to placing land use change tax revenues in the conservation fund.

9 Effective Date. This act shall take effect July 1, 2012.

LBAO

12-2008

12/05/11

HB 1515-FN-LOCAL - FISCAL NOTE

AN ACT relative to the assessment of the land use change tax and the use of land use change tax revenues.

FISCAL IMPACT:

      The Department of Revenue Administration and New Hampshire Municipal Association state this bill will have an indeterminable impact on local revenues in FY 2013 and each year thereafter. There will be no impact on state and county revenues or expenditures, or local expenditures.

METHODOLOGY:

    The Department of Revenue Administration states this bill makes multiple statutory changes relative to the land use change tax. The Department states it cannot estimate the number of taxpayers that would either change qualifying categories, in any given year, or pay their property tax bill more than 30 days after the RSA 76:1-a date of notice of tax, and therefore is unable to estimate this bill’s potential impact on local revenues.

    The New Hampshire Municipal Association states this bill changes the time frame under which the land use change tax is due to a municipality and eliminates the lien redemption period afforded to delinquent taxes under RSA 80. The Association states this bill also adds delinquent property taxes on open space land as criteria triggering the assessment of the 10% land use change tax. The Association states it does not have data relative to the amount of delinquent property taxes assessed under current use and therefore is unable to estimate this bill’s potential impact on local revenues.

Links

HB1515 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB1515 Revision: 21537 Date: Dec. 14, 2011, midnight

Docket