HB1336 (2016) Detail

Relative to interest on abatements of taxes.


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HB 1336-FN-LOCAL - AS INTRODUCED

 

2016 SESSION

\t16-2090

\t10/03

 

HOUSE BILL\t1336-FN-LOCAL

 

AN ACT\trelative to interest on abatements of taxes.

 

SPONSORS:\tRep. Fromuth, Hills. 7; Rep. Schleien, Hills. 37; Rep. Biggie, Hills. 23; Rep. Herbert, Hills. 43

 

COMMITTEE:\tMunicipal and County Government

 

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ANALYSIS

 

\tThis bill increases the rate of interest paid on an abatement of taxes previously paid and refunded jeopardy assessments.

 

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Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

\t16-2090

\t10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\trelative to interest on abatements of taxes.

 

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

 

\t1  Property Taxation; Abatements; Interest.  Amend RSA 76:17-a to read as follows:

\t76:17-a  Interest.  Whenever, after taxes have been paid, the selectmen, the board of tax and land appeals, or the superior court, as the case may be, grant an abatement of taxes, they shall award interest on the amount of taxes abated at the rate of [6] 12 percent per annum from the date the taxes were paid to the date of refund.

\t2  Property Taxation; Jeopardy Assessment; Interest.  Amend RSA 76:10-a to read as follows:

\t76:10-a  Jeopardy Assessment.  Whenever it shall appear to the selectmen or assessors that it is necessary that the assessment of taxes assessed against any property be made as soon as possible in order to insure the payment of the taxes and to protect the public interest, they may, on or after April 1, make a reasonable jeopardy assessment of the taxes against the owner or person to whom such property is assessed and commit a warrant to the collector for the same, and the collector after making presentation of a bill for such taxes may immediately use any of the remedies provided by law to collect the taxes committed to him or her in such warrant.  If it later appears that such jeopardy tax payment was in excess of the taxes due the over plus together with interest at the rate of [6] 12 percent per annum from the time of payment to the time of refund shall be refunded to the person from whom the tax was collected.  If such tax payment was insufficient to pay the actual tax later found to be due, then a further assessment may be made and may be collected in the same manner as the original assessment.

\t3  Effective Date.  This act shall take effect 60 days after its passage.

 

\t\t\t\t\t\t\t\t\t\t\tLBAO

\t\t\t\t\t\t\t\t\t\t\t16-2090

\t\t\t\t\t\t\t\t\t\t\t10/23/15

 

HB 1336-FN-LOCAL- FISCAL NOTE

 

AN ACT\trelative to interest on abatements of taxes.

 

 

FISCAL IMPACT:

The Department of Revenue Administration and the New Hampshire Municipal Association state this bill, as introduced, will increase local expenditures by an indeterminable amount in FY 2016 and each year thereafter.  There will be no fiscal impact to state, county, and local revenue or state and county expenditures.

 

METHODOLOGY:

The Department of Revenue Administration and the New Hampshire Municipal Association state this bill increases the interest rate from 6 to 12 percent that is paid to taxpayers when property tax abatements are granted by selectmen, the Board of Tax and Land Appeals, or the Superior Court and for refunds from overpayment of jeopardy assessments.  The Department and Association state this bill will double the amount of interest paid to taxpayers relative to abatements and jeopardy assessments.  The Department and the Association state that no data are available to estimate the amount of additional interest paid to taxpayers by municipalities.   

 

The Judicial Branch states this bill will have no fiscal impact on its operations.