HB 1683-FN-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2524
\t10/04
HOUSE BILL\t1683-FN-LOCAL
AN ACT\trelative to lowering the interest rate and costs for the redemption and repurchase of property subject to a tax lien or tax deed.
SPONSORS:\tRep. Hull, Graf. 9; Rep. Ammon, Hills. 40
COMMITTEE:\tMunicipal and County Government
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ANALYSIS
\tThis bill lowers the rate of interest charged to payments in the redemption or repurchase of property subject to a tax lien or tax deed. The bill also removes an additional 15 percent penalty added to the cost to repurchase such property.
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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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2524
\t10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to lowering the interest rate and costs for the redemption and repurchase of property subject to a tax lien or tax deed.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Proceedings Against Real Estate; Redemption; Interest Rate. Amend RSA 80:32 to read as follows:
\t80:32 Redemption. Any person with a legal interest in land so sold may redeem the same by paying or tendering to the collector, or in his absence, at his or her usual place of abode, at any time before a deed thereof is given by the collector, the amount for which the land was sold, with interest at [18] 5 percent per annum upon the whole amount for which the land was sold from the time of sale to the time of payment in full, except that in the case of partial payments in redemption made under RSA 80:33-a, the interest shall be computed on the unpaid balance, together with redemption costs and costs for notifying the mortgagees, if any. In case the tax collector who sold the property in question shall have died, become incapacitated, been removed from office or removed from the town or city or shall have been discharged from his or her bond by the selectmen or assessors, then the person with the legal interest in redeeming the property may tender such sums to the tax collector then in office of said city or town. Upon advice from the selectmen or assessors that the amount tendered is the correct amount due, the tax collector shall accept said amount for the redemption of the property.
\t2 Proceedings Against Real Estate; Subsequent Tax; Interest Rate. Amend RSA 80:37 to read as follows:
\t80:37 Payment of Subsequent Tax. For purposes of this section, "subsequent tax'' shall mean any tax assessed upon the real estate subsequent to that for which it was sold by a municipality, a county or the state. The purchaser of real estate at any tax sale may pay to the collector any subsequent tax and the collector shall, within 30 days after such payment, notify the register of deeds thereof, giving the date and the amount of such payment and the name of the person so paying together with the date of the tax sale, the name of the person taxed and a description of the property sold as shown in the report of sale recorded in the registry of deeds. The collector of taxes shall receive $1 for such notice to the register of deeds of the payment of subsequent tax plus $1 to be paid to the register of deeds. The purchaser, within 30 days of payment of the subsequent tax, shall personally, or by certified mail, notify in writing any mortgagee who was notified of his purchase at the tax sale of this payment of the subsequent tax. The purchaser paying the subsequent tax shall receive the same fees prescribed for notifying the mortgagee of his or her purchase at the tax sale to be included in [his] the costs to be paid by the person making redemption, except that when a town is a purchaser at a tax sale and the town pays a subsequent tax and the selectmen direct the collector of taxes as agent for the town to give notice of payment of a subsequent tax to any mortgagee who was notified of the purchase by the town at the tax sale, the collector shall be paid the sum of $5 for this service. Any amounts so paid on account of subsequent taxes, together with interest thereon at the rate of [18] 5 percent per annum from the date of payment shall, in addition to the purchase price at the time of sale with accrued interest and costs, be paid by the person making redemption.
\t3 Proceedings Against Real Estate; Redemption; Interest Rate. Amend RSA 80:69 to read as follows:
\t80:69 Redemption. Any person with a legal interest in land subject to a real estate tax lien may redeem the same by paying or tendering to the collector, at any time before a deed thereof is given by the collector, the amount of the real estate lien, with interest at [18] 5 percent per annum upon the whole amount of the recorded lien from the date of execution to the time of payment in full, except that in the case of partial payments in redemption made under RSA 80:71, the interest shall be computed on the unpaid balance, together with redemption costs and costs for identifying and notifying the mortgagees, if any. In case the tax collector who executed the tax lien against the property in question shall have died, become incapacitated, been removed from office or removed from the town or city or shall have been discharged from his or her bond by the selectmen or assessors, then the person with the legal interest in redeeming the property may tender such sums to the tax collector then in office of said city or town. Upon advice from the selectmen or assessors that the amount tendered is the correct amount due, the tax collector shall accept said amount for the redemption of the property.
\t4 Proceedings Against Real Estate; Subsequent Tax; Interest Rate. Amend RSA 80:75, III to read as follows:
\t\tIII. When a municipality is the lienholder and the municipality pays a subsequent tax and the selectmen direct the collector of taxes, as agent of the municipality, to give such notice of said payment to any owner and to any mortgagee as provided above, the collector of taxes shall receive the same fees provided for the lienholder for his or her service. The amount of subsequent taxes paid, together with interest on such taxes at the rate of [18] 5 percent per annum from the date of payment shall, in addition to the tax lien amount at the time of execution with interest and costs, be paid by the person making redemption.
\t5 Repeal. RSA 80:90, I(f), relative to an additional 15 percent penalty, is repealed.
\t6 Effective Date. This act shall take effect 60 days after its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2524
\t\t\t\t\t\t\t\t\t\t\t10/23/15
HB 1683-FN-LOCAL- FISCAL NOTE
AN ACT\trelative to lowering the interest rate and costs for the redemption and repurchase of property subject to a tax lien or tax deed.
FISCAL IMPACT:
The Department of Revenue and New Hampshire Municipal Association state this bill, as introduced, may decrease local revenue by an indeterminable amount in FY 2016 and each year thereafter, and may increase local expenditures by an indeterminable amount in FY 2016 and each year thereafter. There will be no fiscal impact on state and county revenue or expenditures.
METHODOLOGY:
The New Hampshire Municipal Association states this bill reduces the permitted interest rate from 18 to 5 percent charged by a municipality when a former property owner redeems or repurchases property subject to a tax lien or tax deed under RSA 80. This bill also repeals the 15 percent penalty under RSA 80:90,I(f) that may be charged by a municipality when a former owner redeems or repurchases property subject to a tax lien or tax deed. The New Hampshire Municipal Association states this bill will reduce local revenue because property owners with delinquent taxes will pay less in penalties and interest.
The Department of Revenue states this bill may decrease local revenue and increase local expenditures. The Department assumes lower interest rates under RSA 80 and the repeal of the 15 percent penalty under RSA 80:90,I(f), removes disincentives to pay property taxes in a timely manner and could increase the rate of non-payments which would decrease local revenue. The Department states that if the incidence of non-payments increases then collection expenses may correspondingly increase.