HB411 (2017) Detail

Relative to calculation of collection dates for local property taxes.


HB 411-LOCAL - AS INTRODUCED

 

 

2017 SESSION

17-0420

10/01

 

HOUSE BILL 411-LOCAL

 

AN ACT relative to calculation of collection dates for local property taxes.

 

SPONSORS: Rep. Valera, Hills. 38; Rep. Theberge, Coos 3; Rep. Hynes, Hills. 21

 

COMMITTEE: Municipal and County Government

 

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ANALYSIS

 

This bill changes the calculation of property taxes to use the assessed valuations determined in the prior year and tax rates determined by the commissioner of revenue administration in the prior year so that budgets can be adopted using known revenues.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0420

10/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to calculation of collection dates for local property taxes.

 

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

 

1  Calculation and Collection of Property Taxes; Transition.  

I.  Beginning calendar year 2018, the determination of assessed values applicable to the property tax year commencing April 1, 2018 shall be the same values applied to the prior property tax year.  In subsequent tax years the assessed values shall be updated as provided in law and shall apply to the next year's property taxes in the towns, cities, and districts in the state.

II.  Beginning calendar year 2018, the determination of tax rates by the commissioner of revenue administration applicable to the property tax year commencing April 1, 2018 shall be the same values applied to the prior property tax year.  In subsequent tax years the tax rates shall be determined as provided in law and shall apply to the next year's property taxes in the towns, cities, and districts in the state.

III.  The adoption of budgets in towns with town meeting, official ballot towns, cities, and municipalities adopting a charter shall be accomplished using the calculated revenues from the prior year's assessed values and the prior year's tax rate so that all budgets are made with knowledge of the revenues available so that spending priorities can match revenues.  

2  Property Tax Year.  Amend RSA 76:2 to read as follows:

76:2  Property Tax Year.  The property tax year shall be April 1 to March 31 and all property taxes shall be assessed on the inventory taken in April of [that] the prior year, except for prorated assessments on damaged buildings under RSA 76:21.

3  Tax Warrant; Owners.  Amend RSA 76:10, I to read as follows:

I.  A list of all property taxes by them assessed shall be made by the selectmen under their hands, with a warrant under their hands and seal.  The list shall be directed to the collector of such town, requiring the collector to collect the same, and to pay to the town treasurer such sums and at such times as may be therein prescribed.  The selectmen shall assess such taxes to the owner as of April 1 of the prior year, or to the current owner, if known.  The selectmen of a town or the board of assessors of a city may round off to the nearest dollar the total tax due on each parcel appearing on the list.

4  Delivery of Tax Bills.  Amend RSA 76:11, I to read as follows:

I.  Such list shall be delivered to the collector [within 30 days from the receipt of information by the selectmen from the commissioner of revenue administration of the rate percent of taxation as provided in RSA 41:15, unless for good cause the time is extended by the commissioner of revenue administration] by January 2 each year.  The collector shall, within 30 days after the receipt of such list, send to every person taxed, a bill for such taxes by first class mail or, with the approval of the governing body, by electronic means as provided in paragraph II, unless for good cause the time is extended by the commissioner of revenue administration.  Said bill shall be mailed separately and not included with mailing of other town or city bills, unless the governing body of the town or city votes to mail other town or city bills or information directly related to municipal business along with the tax bill.  Under no circumstances shall a city or town mail statements of position on matters of public policy along with the tax bill.  Upon written request of a mortgagee or its representative, the tax collector of a city or town shall mail or transfer by electronic means as provided in paragraph II a duplicate copy of the property tax bill, as it was sent to the property taxpayer, to the party making such request.  Other form of notification of tax owed, acceptable to the mortgagee and the tax collector, may be substituted for the duplicate tax bill.  A separate written request, with specific property identification, shall be required for each duplicate copy or form.  The governing body of a city or town may establish a reasonable fee to be charged for each duplicate copy or form.  Resident tax bills may be included with property tax bills when the inclusion of such resident tax bills will not unduly delay the mailing of either the resident or property tax bills.

5  Arrearages.  Amend RSA 76:11-b to read as follows:

76:11-b  Notice of Arrearage.  The tax collector shall provide to the owner as of April 1 of the prior year or current owner, if known, a summary of all uncollected and unredeemed taxes on the property.  This summary may be included on or with the tax bill, or may be sent by separate mailing within 90 days of the due date of the final tax bill.

6  Semi-Annual Collection of Taxes.  Amend RSA 76:15-a to read as follows:

76:15-a  Semi-Annual Collection of Taxes in Certain Towns and Cities.

I.  Taxes shall be collected in the following manner in towns and cities which adopt the provisions of this section in the manner set out in RSA 76:15-b.  A partial payment of the taxes [assessed on April 1] billed in any tax year shall be computed by taking the [prior year's] assessed valuation determined in the prior year times 1/2 of the[ previous year's] tax rate[; provided, however, that whenever it shall appear to the selectmen or assessors that certain individual properties have physically changed in valuation, they may use the current year's appraisal times 1/2 the previous year's tax rate to compute the partial payment].

II.  [For the purposes of this section, the lists of assessed property shall be committed by the selectmen with a warrant under their hands and seal directed to the collector of such town no later than May 15.]  The collector shall mail all the bills for this partial payment no later than [June 15] the day of town meeting or the day of final adoption of the budget in a city or charter town.  Partial payment of taxes assessed under this section shall be due and payable [on] not later than July 1.  The collector shall receive such payments, give a receipt therefor, and credit the amount paid toward the [amount of the] taxes [eventually] assessed against the property, in the same manner as prepayments under RSA 80:52-a.  A payment of the remainder of the taxes[ assessed April 1] billed, minus the payment due [on] by July 1 of that year, shall be due and payable December 1.  Interest charged on all taxes not paid on or before the date they are due shall be as prescribed in RSA 76:13, except that, when bills for the partial payment under this section are mailed on or after June 1, interest shall not be charged until 30 days after the last bill is mailed.

[III.(a)  Notwithstanding the provisions of paragraphs I and II, any municipality affected by a change in adequate education grants or excess tax amounts, determined pursuant to RSA 198:41, may apply to the commissioner of revenue administration on forms prescribed by the commissioner to adjust the 1/2 of the previous year's tax rate by an amount sufficient to collect 1/2 of the estimated increase or decrease in the local school tax resulting from the change.

(b)  The department of education shall certify, no later than November 15, to the commissioner of the department of revenue administration the difference in the amount of the adequate education grants and excess tax amounts between the current fiscal year and the forthcoming fiscal year for every municipality.

(c)  Any municipality requesting an adjusted rate for the semi-annual bill shall submit such request to the commissioner of the department of revenue administration by April 1 prior to the issuance of the semi-annual bill.]

7  Quarterly Billing of Taxes.  Amend RSA 76:15-aa to read as follows:

76:15-aa  Quarterly Billing of Taxes in Certain Towns and Cities.  Any city or town which has adopted an optional fiscal year may adopt a system for quarterly billing and collection of taxes as provided in RSA 76:15-b.

I.  In a city or town that adopts the provisions of RSA 76:15-b, III, the first quarterly bill shall be due and payable (a) in a city or town that has adopted a charter under RSA 49-C or RSA 49-D, [on April 1]the day of final adoption of the budget or (b) in a town other than a town that has adopted a charter under RSA 49-D, on a date determined by the governing body not sooner than 30 days and not later than 45 days following the date of town meeting, during the 6-month conversion period prior to the fiscal year beginning on July 1.  This bill shall be an amount based on 1/4 of the total [previous year's complete] city or town, school, and county levy.  The entire amount collected on the first quarterly billing date, except for the county portion, shall be credited to the city or town to fund the 6-month conversion period budget as adopted by the legislative body.

(a)  For the purposes of RSA 80:19, the assessment date for the first quarter tax bills due and payable [on April 1 of] in the year of conversion to quarterly tax billing shall be that same date of [April 1] the day of town meeting or the day of final adoption of the budget in a city or charter town.

(b)  Thereafter, beginning with the newly adopted fiscal year beginning July 1, tax payments shall be due as provided in paragraph II.

II.  In any city or town which has adopted both an optional fiscal year and quarterly billing, taxes shall be collected in the following manner:

(a)  Tax payments shall be due July 1, October 1, January 2, and March 31 of each fiscal year to fund the optional fiscal year budget [which is the basis upon which the] using the tax rate [shall be] established by the department of revenue administration in the prior year.

(b)  A quarterly billing of the taxes to be due in any tax year shall be computed by taking the [previous year's] assessed valuation determined in the prior year times the[ previous year's] tax rate, as determined by the department of revenue administration in the prior year, divided by 4[; provided, however, that whenever it appears to the assessors that certain individual properties have changed in valuation, they may use the current year's appraisal times the previous year's tax rate divided by 4 to compute the quarterly payment].  Quarterly payments of taxes assessed under this section shall be due and payable on July 1 and October 1.  [For the purpose of the quarterly payments, a list of assessed property shall be committed by the board of assessors with warrants under their hands and seal directed to the collector no later than May 15.]  The collector shall mail all the bills for the 2 quarterly payments no later than 30 days before their due dates.  The collector shall receive such payments and credit the amount paid towards the amount of the taxes eventually assessed against the property.

(c)  Payments of the remainder of the taxes, minus the 2 quarterly payments due on July 1 and October 1 of that year, shall be due and payable in 2 equal billings on January 2 and March 31.  For the purpose of these final remaining quarterly payments, the assessor shall commit warrants to the collector.  The collector shall mail all the bills for the 2 remaining tax payments no later than 30 days before their due dates.  For purposes of RSA 76:16, RSA 76:16-a, and RSA 76:17, the "notice of tax'' shall mean the date the board of tax and land appeals determines to be the last date of mailing of the January 2 quarterly tax bill, which bill is based on the current year's tax rate and assessments.

(d)  For the purpose of establishing the real estate tax lien under the provisions of RSA 80:59, for the tax bills due and payable each year after the adoption of quarterly tax billing, the real estate of every person or corporation may be subject to the tax lien procedure by the collector, in case all taxes against the owner shall not be paid in full on or before April 1 next after its assessment.

III.  If, subsequent to the collector issuing quarterly bills, the assessors are made aware of a change in ownership in a parcel so billed, the assessors shall amend the tax list and notify the collector, who, upon the request of the new owner, shall cause to be mailed to the new owner a statement of account showing the balance due on the current quarterly billing.

IV.  Interest at the rate of 12 percent per annum shall be charged on all taxes not paid on or before their due dates or 30 days after mailing, whichever is later.

[V.(a)  Notwithstanding the provisions of paragraphs II and III, any municipality with quarterly billing affected by a change in adequate education grants or excess tax amounts, determined pursuant to RSA 198:41, may apply to the commissioner of revenue administration on forms prescribed by the commissioner to adjust the 1/4 of the previous year's tax rate by an amount sufficient to collect 1/4 of the estimated increase or decrease in the July and October quarterly bills in local school tax resulting from the change.

(b)  The department of education shall certify, no later than November 15, to the commissioner of the department of revenue administration the difference in the amount of the adequate education grants and excess tax amounts between the current fiscal year and the forthcoming fiscal year for every municipality.

(c)  Any municipality requesting an adjusted rate for the quarterly bills shall submit such request to the commissioner of the department of revenue administration by April 1 prior to the issuance of the July and October quarterly bills.

(d)  The department of revenue administration shall expedite certified adjusted rate applications.]

8  Collection of Property Taxes in Certain Municipalities.  Amend RSA 76:15-c, II to read as follows:

II.  If the provisions of this section are adopted by the municipality, the municipality shall begin adjusting the 2 due dates for the partial payment and the payment of taxes forward one month a year for 6 years until the final collection dates are on July 1 for the partial payment and December 1 for the balance of the payment for the year of assessment, still funding the period from July 1 through June 30 of the following year.  During the conversion years a partial payment of the taxes assessed on [April 1] the day of town meeting or the day of final adoption of the budget in a city or charter town in any year shall be computed by taking the [prior year's] assessed value determined in the prior year times 1/2 of the [prior year's] tax rate[; provided, however, that whenever it shall appear to the assessor that certain individual properties have physically changed in valuation, the assessor may use the current year's assessed value times 1/2 of the previous year's tax rate to compute the partial payment].

9  Reports of Revenues.  Amend RSA 21-J:34, III to read as follows:

III.  A report filed by the governing body of each city, town, school district, and village district shall revise all the estimated revenues for the year.  This report shall be filed by September 1 of [each] the prior year for the anticipated revenues not derived from property taxes.

10  Setting Tax Rates.  Amend RSA 21-J:35, V to read as follows:

V.  The commissioner shall notify in writing the governing body of each city or town of the rate [he has] established for the next property tax year.  This notification shall include a detailed explanation of all changes made in the appropriations from the current year or revenue estimates submitted by the municipality or district in question.

11  Municipal Budget Law;  Budget.  Amend RSA 32:3, III to read as follows:

III.  "Budget'' means a statement of recommended appropriations and [anticipated] revenues to be collected from current year tax bills submitted to the legislative body by the budget committee, or the governing body if there is no budget committee, as an attachment to, and as part of the warrant for, an annual or special meeting.

12  Municipal Budget Law; Revenues.  Amend RSA 32:4 to read as follows:

32:4  Estimate of Expenditures [and]; Revenues.  All municipal officers, administrative officials and department heads, including officers of such self-sustaining departments as water, sewer, and electric departments, shall prepare statements of estimated expenditures and the amount of revenues to be collected for the ensuing fiscal year, and shall submit such statements to their respective governing bodies, at such times and in such detail as the governing body may require.

13  Municipal Budget Law; Gross Appropriations.  Amend RSA 32:5, III to read as follows:

III.  All appropriations recommended shall be stipulated on a "gross'' basis, showing the amount of taxes billed and anticipated revenues from all other sources, including grants, gifts, bequests, and bond issues, which shall be shown as offsetting revenues to appropriations affected.  The budget shall be prepared according to rules adopted by the commissioner of revenue administration under RSA 541-A, relative to the required forms and information to be submitted for recommended appropriations and anticipated revenues for each town or district.

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

Links

HB411 at GenCourtMobile

Action Dates

Date Body Type
Feb. 7, 2017 House Hearing
Feb. 14, 2017 House Exec Session
March 8, 2017 House Floor Vote

Bill Text Revisions

HB411 Revision: 544 Date: Jan. 27, 2017, 12:25 p.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Municipal and County Government HJ 3 P. 11
Feb. 7, 2017 Public Hearing: 02/07/2017 10:20 AM LOB 301
Feb. 14, 2017 Executive Session: 02/14/2017 10:30 AM LOB 301
March 8, 2017 Committee Report: Inexpedient to Legislate for 03/08/2017 (Vote 20-0; CC)
March 8, 2017 Inexpedient to Legislate: MA VV 03/08/2017 HJ 9 P. 41