HB 1504-FN-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2637
\t10/09
HOUSE BILL\t1504-FN-LOCAL
AN ACT\trelative to the execution of a real estate tax lien on a primary residence.
SPONSORS:\tRep. Hoell, Merr. 23; Rep. Itse, Rock. 10; Rep. Abramson, Rock. 20; Rep. Ingbretson, Graf. 15
COMMITTEE:\tMunicipal and County Government
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ANALYSIS
\tThis bill prohibits the execution of a tax lien by the tax collector when the delinquency is the result of the nonpayment of property taxes on property which is the primary personal residence of the taxpayer.
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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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2637
\t10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to the execution of a real estate tax lien on a primary residence.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 New Paragraph; Collection of Taxes; Abeyance of Tax Deed and Execution. Amend RSA 80:76 by inserting after paragraph III the following new paragraph:
\t\tIII-a. Notwithstanding the provisions of paragraph I, if a property is the primary personal residence of a natural person taxpayer, including where the taxpayer is a trustee of a revocable trust, and the delinquency is the result of nonpayment of taxes, interest, and costs, the collector shall not execute a deed of the real estate to a municipality and the governing body of the municipality shall not accept a deed. The governing body shall have a duty to notify the tax collector in such cases. The tax lien shall remain in effect indefinitely, retaining its priority over other liens. The taxpayer's right of redemption as provided by RSA 80:69 shall likewise be extended indefinitely, with interest continuing to accrue as provided in that section.
\t2 Effective Date. This act shall take effect January 1, 2017.
\t\t\t\t\t\t\t\t\t\t\t16-2637
\t\t\t\t\t\t\t\t\t\t\t11/20/15
HB 1504-FN-LOCAL- FISCAL NOTE
AN ACT\trelative to the execution of a real estate tax lien on a primary residence.
FISCAL IMPACT:
The Department of Revenue Administration and New Hampshire Municipal Association state this bill, as introduced, may have an indeterminable impact on local revenue and expenditures in FY 2017 and each year thereafter. There will be no fiscal impact on state and county revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill prohibits the tax collector from executing a deed and conveying property that is subject to unpaid property taxes in instances where the property is the primary personal residence of a natural person. The Department estimates that local revenue will decrease to the extent tax collectors are prohibited from conveying real estate that is the primary personal residence of a natural person to satisfy unpaid property tax obligations. The Department states the incidence of non-payment of property taxes may increase if property owners no longer risk losing their primary residence if they fail to pay property taxes. The Department assumes municipalities incur a cost to execute a deed and conveyance of property pursuant to RSA 80:76 and if fewer transactions occur then local expenditures may decrease.
The New Hampshire Municipal Association states this bill will not necessarily result in a net loss of municipal revenue, but it will at least delay the recovery of unpaid taxes. The overall tax burden may be shifted to other property taxpayers or municipal revenue may be reduced by an indeterminable amount, depending on the circumstances. If fewer tax deeds are executed, or if there is a delay in execution, a municipality may experience reduced or delayed expenditures. However those expenditures ordinarily are reimbursed out of the proceeds from the sale of the property which, would likely have no net impact on local expenditures.