Bill Text - SB504 (2018)

Relative to sales of tax-deeded property.


Revision: Dec. 20, 2017, 12:13 p.m.

SB 504-FN - AS INTRODUCED

 

 

2018 SESSION

18-2864

06/10

 

SENATE BILL 504-FN

 

AN ACT relative to sales of tax-deeded property.

 

SPONSORS: Sen. Bradley, Dist 3; Rep. Umberger, Carr. 2; Rep. Butler, Carr. 7

 

COMMITTEE: Public and Municipal Affairs

 

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ANALYSIS

 

This bill permits selectmen or a mayor to dispose of liens or tax deeded property other than by sealed bid or public auction if it is in the public interest.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2864

06/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to sales of tax-deeded property.

 

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

 

1  Transfer of Tax Liens.  Amend RSA 80:80 to read as follows:

80:80  Transfer of Tax Lien.

I.  No transfer of any tax lien upon real estate acquired by a town or city as a result of the execution of the real estate tax lien by the tax collector for nonpayment of taxes thereon shall be made to any person by the municipality during the 2-year period allowed for redemption, nor shall title to any real estate taken by a town or city in default of redemption be conveyed to any person, unless the town, by majority vote at the annual meeting, or city council by vote, shall authorize the selectmen or the mayor to transfer such lien or to convey such property by deed.

II.  If the selectmen or mayor are so authorized to convey such property by deed, either a public auction shall be held, or the property may be sold by advertised sealed bids.  The selectmen or mayor shall have the power to establish a minimum amount for which the property is to be sold and the terms and conditions of the sale.

II-a.  If the selectmen or mayor are authorized to transfer such liens during the 2-year redemption period, either a public auction shall be held, or the liens may be sold by advertised sealed bids.  The selectmen or mayor may establish minimum bids, and may set the terms and conditions of the sale.  Such liens may be sold singly or in combination, but no fractional interest in any lien shall be sold.  Such transfer shall not affect the right of the owner or others with a legal interest in the land to redeem the tax lien pursuant to RSA 80:69, or make partial payments in redemption pursuant to RSA 80:71, but the transferee shall become the lienholder for purposes of RSA 80:72 and 80:76.

III.  The selectmen may, by a specific article in the town warrant, or the mayor may, by ordinance, [may] be authorized to dispose of [a lien] liens or tax deeded [property] properties in a manner other than [otherwise] as provided in this section, as justice may require.  Before proceeding under this provision, the selectmen or  mayor shall make an affirmative finding that disposal by a method other than sealed bid or public auction is in the public interest.

IV.  Such authority to transfer or to sell shall continue in effect for one year from the date of the town meeting or action by the city or town council provided, however, that the authority to transfer tax liens, or to sell real estate acquired in default of redemption, or to vary the manner of such sale or transfer as justice may require, may be granted for an indefinite period, in which case the warrant article or vote granting such authority shall use the words "indefinitely, until rescinded'' or similar language.

V.  Towns and cities may retain and hold for public uses real property the title to which has been acquired by them by tax collector's deed, upon vote of the town meeting or city council approving the same.

VI.  For purposes of this section, the authority to dispose of the property "as justice may require'' shall include the power of the selectmen or mayor to:

(a)  Engage a real estate agent or broker to list and sell the property, including a sale conditional on the buyer's obtaining development approvals;

(b)  Sell undeveloped parcels to abutters for consolidation into  adjoining lots for the purpose of preserving open space or reducing  development density; or

(c)  Convey the property to a former owner, or to a third party for benefit of a former owner, upon such reasonable terms as may be agreed to in writing, including the authority of the municipality to retain a mortgage interest in the property, or to reimpose its tax lien, contingent upon an agreed payment schedule, which need not necessarily reflect any prior redemption amount.  Any such agreement shall be recorded in the registry of deeds.  This paragraph shall not be construed to obligate any municipality to make any such conveyance or agreement.

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

 

LBAO

18-2864

12/1/17

 

SB 504-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to sales of tax-deeded property.

 

FISCAL IMPACT:      [    ] State              [    ] County               [ X ] Local              [    ] None

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

This bill would allow selectman or a mayor to sell a tax deeded property other than by public auction or sealed bids, as justice may require.  This would include the power to sell property through a real estate agent or to sell undeveloped parcels to abutters to preserve open space.

 

The Municipal Association indicates this bill would not directly affect municipal revenues or expenditures.  The Association assumes a municipality that chooses to dispose of property in the manner authorized may experience an increase or a decrease in revenue or expenditures, but the Association has no way to estimate the possible impact.

 

The Department of Revenue Administration indicates this bill would have no impact on state or county revenue and expenditures.  The Department does not have sufficient information to determine the potential impact on local revenues or expenditures.

 

AGENCIES CONTACTED:

Department of Revenue Administration and New Hampshire Municipal Association