Revision: Jan. 25, 2017, 3:35 p.m.
HB 565-FN-LOCAL - AS INTRODUCED
2017 SESSION
17-0017
10/05
HOUSE BILL 565-FN-LOCAL
AN ACT relative to collection of delinquent property tax payments by manufactured housing owners.
SPONSORS: Rep. Abbott, Ches. 1; Rep. Gauthier, Sull. 3; Rep. Sterling, Ches. 14
COMMITTEE: Municipal and County Government
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This bill allows towns and cities to adopt a program for the collection of delinquent payments and requirement for subsequent year's escrow payments for property taxes on manufactured housing.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0017
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to collection of delinquent property tax payments by manufactured housing owners.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Collection of Taxes; Manufactured Housing; Delinquency; Escrow Requirement. Amend RSA 80 by inserting after section 52-c the following new section:
80:52-d Manufactured Housing; Delinquency; Escrow Requirement.
I. Any town by vote at a town meeting under a proper article in the warrant or by vote of the board of selectmen or the town council and any city by vote of its governing body may authorize the program for the collection of delinquent payments and requirement for subsequent year's escrow payments for property taxes on manufactured housing as provided in paragraph II.
II. Within 30 days of a due date for a partial or full tax payment, but prior to the end of the property tax year, the selectmen or assessors shall send a letter to owner's of manufactured housing taxable as real estate as provided in RSA 72:7-a for which the taxes due in that tax year have not been fully paid. The letter sent, in regard to any specific delinquent amount, shall contain a notification that if the delinquent taxes and interest due on the manufactured housing are not paid in full within 90 days of the date of issuance of the notice, the owner will be required to begin making monthly payments of delinquent property taxes, and property taxes for the subsequent property tax year will be collected and escrowed for payment of property taxes that subsequent tax year.
III. The town or city shall not undertake other collection proceedings under RSA 80 on the manufactured housing property of the taxpayer during the 90 days after the postmark date of the letter containing the notification required under paragraph II except for perfecting its tax lien for delinquent payments.
IV. The tax collector of the town or city shall establish a tax escrow account for delinquent property taxes for an owner who receives a notice under this section. If an escrow account is established for an owner who receives a notice regarding taxes due, the tax collector shall determine an amount the owner must pay each month such that by the following November 30, the owner will have paid the delinquent property taxes on the manufactured housing, and interest due, plus the estimated property taxes that will become due and payable in the year following the year of delinquency. The selectmen or assessors shall give notice to the owners detailing the monthly amount required to be paid under this section. If the owner fails to pay any property taxes or escrow payments on the manufactured housing that becomes due prior to the following November 30, the additional amount of tax due but unpaid, plus interest accrued, shall be added to the delinquent property taxes payable by installment under this section.
V. Within 30 days of receipt of notice issued by the selectmen or assessors specifying the monthly payments as determined by the tax collector, the owner shall make the first monthly payment to the tax collector. If an owner is making the payments at the time required under this section, no additional collection action may be taken under RSA 80 with respect to the manufactured housing for which the property taxes are being paid into the escrow account other than imposing a tax lien to preserve the collection of delinquent taxes due.
VI. No interest shall accrue to the taxpayer on any escrowed payment made, nor shall any interest be paid to the taxpayer on any escrow amount which is later subject to rebate or refund.
VII. In any town or city which shall vote to authorize the program for the collection of delinquent payments and requirement for subsequent year's escrow payments for property taxes on manufactured housing, the tax collector shall give such bond in the form and amount which the commissioner of revenue administration shall require, and the tax collector shall pay over all sums received under this section to the town treasurer under the provisions of RSA 41:35.
2 Effective Date. This act shall take effect 60 days after its passage.
17-0017
1/18/17
HB 565-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to collection of delinquent property tax payments by manufactured housing owners.
FISCAL IMPACT: [ ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
LOCAL: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill allows towns and cities to adopt a provision allowing the municipality to require owners of manufactured housing to begin making monthly payments of delinquent property taxes, and property taxes for the subsequent property tax year will be collected and escrowed for payment of property taxes that subsequent tax year.
The Department of Revenue Administration states that the program is a local option, and therefore the Department is unable to estimate how many cities and towns will adopt the provision or how many taxpayers will be in arrears in the future. Municipalities that do adopt the provisions of the local option may experience an increase in expenses to maintain escrow accounts and may also recognize an increase in property tax revenues.
The New Hampshire Municipal Association states that a municipality that adopts the program may be able to collect taxes that previously would have gone uncollected, thus resulting in an increase in municipal revenues, although any such increase would be offset by a corresponding decrease in the overall tax rate. There may also be a nominal increase in expenditures for notices sent pursuant to the program.
The Judicial Branch indicates that there is no direct impact on the Judicial Branch, as the procedure set forth in the proposed bill does not contemplate any judicial proceedings.
AGENCIES CONTACTED:
Department of Revenue Administration, New Hamsphire Municipal Association, and Judicial Branch