0239-hb 1202

CHAPTER 239

HB 1202-LOCAL - FINAL VERSION

AN ACT making technical corrections to 1999, 17 as amended, relative to filing and mailing procedures in the administration and appeal of state and local taxes, and relative to disclosure of information for purposes of the tax modeling system.

SPONSORS: Rep. Patten, Carr 9

This bill makes technical corrections to 1999, 17 (HB 117) as amended. The bill also clarifies certain filing and mailing procedures to be used in the administration and appeal of state and local taxes.

This bill also permits the department of revenue administration to disclose certain tax records and information to the legislative budget assistant for the purpose of the tax policy simulation and forecasting models authorized pursuant to 1999, 338:23.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

` XIII. Equalize annually by [~~March 31~~] May 1 the valuation of the property as assessed in the several towns, cities, and unincorporated places in the state including the value of property exempt pursuant to RSA 72:37, 72:37-b, 72:39-a, 72:62, 72:66, and 72:70 by adding to or deducting from the aggregate valuation of the property in towns, cities, and unincorporated places such sums as will bring such valuations to the true and market value of the property, including the equalized value of property formerly taxed pursuant to the provisions of RSA 72:7; 72:15, I, V, VII, VIII, IX, X, and XI; 72:16; 72:17; 73:26; 73:27; and 73:11 through 16 inclusive, which were relieved from taxation by the laws of 1970, 5:3; 5:8; 57:12; and 57:15, the equalized valuation of which is to be determined by the amount of revenue returned in such year in accordance with RSA 31-A, and by making such adjustments in the value of other property from which the towns, cities, and unincorporated places receive taxes or payments in lieu of taxes as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the procedures set forth in RSA 21-J:9-a.

(a) Include appraisals of any of the taxable property of such city, town, or unincorporated place in the sales-assessment ratio study. Such appraisals shall be based on full and true [~~market~~] value pursuant to RSA 75:1 and shall be performed by department appraisers. The property to be appraised shall be selected by the commissioner.

239:3 New Paragraph; Equalization Procedure; Report Required. Amend RSA 21-J:9-a by inserting after paragraph IV the following new paragraph:

V. A report filed by the assessing officials of each city, town, and unincorporated place shall certify sales-assessment information necessary for the commissioner to conduct the annual sales-assessment ratio study required under paragraph I. This report shall be filed within 45 days after receipt from the commissioner. Municipalities which fail to timely file the report due to willful neglect or intentional disregard of laws or rules and not reasonable cause shall pay a penalty to the state in the amount of $100 for each day that the report is not timely filed. Within 30 days after the imposition of the penalty by the commissioner, officials of the city, town, or unincorporated place upon which the penalty was imposed may appeal by written application to the board of tax and land appeals or the superior court in the county in which the city, town, or unincorporated place is located. The board of tax and land appeals or the superior court, as the case may be, shall determine de novo the correctness of the commissioner's actions.

239:4 New Paragraph; Appeals to Department or Board. Amend RSA 21-J:28-b by inserting after paragraph VI the following new paragraph:

VII. Compliance with the filing deadlines in this section relative to the department or the board of tax and land appeals shall be in accordance with RSA 80:55.

239:5 Board of Tax and Land Appeals; Authority. Amend RSA 71-B:5, II to read as follows:

II.(a) To hear and determine appeals by municipalities relating to the equalized valuation of property determined by the commissioner of revenue administration pursuant to RSA 21-J:3, XIII. Any municipality aggrieved by its own equalized valuation as determined by the commissioner of revenue administration must appeal to the board in writing within [20] 30 days of notice of its final equalized valuation by the commissioner. The board shall hear and make a final ruling on such appeal within [45] 60 days of its receipt by the board. The board's decision on such appeal shall be final pending a decision by the supreme court. Such appeal shall be filed with the clerk of the supreme court within 20 days after the date the decision is mailed by the board to the municipality. The supreme court shall give any appeal under this section priority in the court calendar.

(b) Decisions by the supreme court on appeals made under subparagraph (a) that are issued prior to September 1 shall be used by the commissioner of revenue administration in determining the taxes to be raised by each municipality for that tax year.

(c) Decisions by the supreme court on appeals made under subparagraph (a) that are issued after September 1 shall be used by the commissioner of revenue administration in determining the taxes to be raised in the tax year commencing April 1 of the [~~second~~] succeeding year. Any adjustments that need to be made to a municipality's tax rate based on a decision by the supreme court under this subparagraph shall be made by the commissioner of revenue administration in the tax year commencing April 1 of the succeeding year.

I. The commissioner of revenue administration shall annually calculate the proportion of education property tax to be raised by each municipality by multiplying the uniform education property tax rate by the total equalized value of all property in the municipality as determined under RSA 21-J:3, XIII for the preceding year, except property taxable under RSA 82 or RSA 83-F.

II. The commissioner shall issue a warrant under the commissioner's hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality [~~at the time of the setting of the tax rate~~] by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts and, if there is an excess education tax payment due pursuant to RSA 198:46, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

239:7 New Section; Timely Filing. Amend RSA 76 by inserting after section 16-d the following new section:

76:16-e Timely Filing. The timely filing and mailing of any document relative to the administration and appeal of any state or municipal tax, either by a municipality or the board of tax and land appeals, shall be determined in accordance with RSA 80:55.

239:8 Excess Property Tax Payments. Amend RSA 198:46, II-III to read as follows:

II. The amount of such excess to be remitted shall not include any income derived from the investment of funds by the [~~town treasurer~~] municipal treasurers under RSA 41:29 and RSA 48:16. Any funds remaining after full payment of the excess tax required in paragraph I shall become available for unrestricted use by the municipality.

III. The commissioner of the department of revenue administration shall collect from the [~~selectmen~~] municipality the excess tax and pay the excess tax over to the state treasurer for deposit in the education trust fund established by RSA 198:39.

239:9 Repeal. RSA 21-J:34, XV, relative to certain reports filed by assessing officials, is repealed.

239:10 Applicability. RSA 21-J:28-b, as inserted by section 4 of this act, and RSA 76:16-e, as inserted by section 7 of this act, shall apply to any tax bill mailed on or after April 1, 1998.

239:11 Legislative Budget Assistant; Disclosure of Confidential Information. Amend RSA 14:31, IV to read as follows:

IV. All state departments, boards, institutions, commissions, and agencies shall be required to furnish to the legislative budget assistant any information, including confidential information, he may request in the course of carrying out his duties as prescribed by this section, RSA 14:31-a, and RSA 14:31-b, except that access to confidential information maintained by the department of revenue administration shall be controlled solely by the provisions of RSA 21-J:14. If the legislative budget assistant requires access to confidential information, the state entity shall furnish the information, except for work papers as described in RSA 91-A:4, V. In such situations, the legislative budget assistant shall be subject to the same restrictions and penalties regarding disclosure of the information as the original custodian of the information. The work product of the legislative budget assistant shall also be confidential to the extent required to preserve confidentiality required by law. Disclosure of confidential information to the legislative budget assistant shall be only for the purpose of, and to the extent necessary for, conducting audits as are required by law or the development, maintenance, updating and use of databases necessary for the operation of the tax policy simulation and forecasting models authorized pursuant to 1999, 338:23. The legislative budget assistant shall notify the head of any state department, board, institution, commission, or agency before requiring the state entity to furnish any confidential information which was obtained by the entity through an exchange of information agreement with another state or the federal government. This paragraph shall not be construed to authorize disclosure to any member of the legislature or, except in accordance with a written contract between the fiscal committee of the general court and a consultant pursuant to 1999, 338:23, to any expert consultants, including certified public accountants and data processing experts, hired by the legislative budget assistant to assist him in the carrying out of his duties, except such summaries and results which do not disclose any identity required by law to be confidential. If any state entity objects to providing confidential information under the provisions of this paragraph, the state entity may apply to the attorney general for disapproval of the request. The attorney general may examine any confidential information to which the legislative budget assistant has requested access to determine whether or not it is necessary for the legislative budget assistant to examine the information to carry out his duties as required by law. If the attorney general finds that such examination is not necessary, he shall disapprove the request, and the agency shall not be required to provide such information. If the state entity agrees to provide the requested information, or if the attorney general determines that it is necessary for the legislative budget assistant to examine the requested information, such information shall be provided to the legislative budget assistant in a mutually agreeable and compatible format.

239:12 Legislative Budget Assistant; Disclosure of Confidential Information. Amend RSA 14:31, IV to read as follows:

IV. All state departments, boards, institutions, commissions, and agencies shall be required to furnish to the legislative budget assistant any information, including confidential information, he may request in the course of carrying out his duties as prescribed by this section, RSA 14:31-a, and RSA 14:31-b, except that access to confidential information maintained by the department of revenue administration shall be controlled solely by the provisions of RSA 21-J:14. If the legislative budget assistant requires access to confidential information, the state entity shall furnish the information, except for work papers as described in RSA 91-A:4, V. In such situations, the legislative budget assistant shall be subject to the same restrictions and penalties regarding disclosure of the information as the original custodian of the information. The work product of the legislative budget assistant shall also be confidential to the extent required to preserve confidentiality required by law. Disclosure of confidential information to the legislative budget assistant shall be only for the purpose of, and to the extent necessary for, conducting audits as are required by law [~~or the development, maintenance, updating and use of databases necessary for the operation of the tax policy simulation and forecasting models authorized pursuant to 1999, 338:23~~]. The legislative budget assistant shall notify the head of any state department, board, institution, commission, or agency before requiring the state entity to furnish any confidential information which was obtained by the entity through an exchange of information agreement with another state or the federal government. This paragraph shall not be construed to authorize disclosure to any member of the legislature or[~~, except in accordance with a written contract between the fiscal committee of the general court and a consultant pursuant to 1999, 338:23,~~] to any expert consultants, including certified public accountants and data processing experts, hired by the legislative budget assistant to assist him in the carrying out of his duties, except such summaries and results which do not disclose any identity required by law to be confidential. If any state entity objects to providing confidential information under the provisions of this paragraph, the state entity may apply to the attorney general for disapproval of the request. The attorney general may examine any confidential information to which the legislative budget assistant has requested access to determine whether or not it is necessary for the legislative budget assistant to examine the information to carry out his duties as required by law. If the attorney general finds that such examination is not necessary, he shall disapprove the request, and the agency shall not be required to provide such information. If the state entity agrees to provide the requested information, or if the attorney general determines that it is necessary for the legislative budget assistant to examine the requested information, such information shall be provided to the legislative budget assistant in a mutually agreeable and compatible format.

I. Notwithstanding the provisions of RSA 21-J:14, the commissioner of revenue administration may disclose data from department records, files or returns to any consultant under contract with the fiscal committee of the general court pursuant to 1999, 338:23 for the purpose of, and to the extent necessary for, the performance of the contract for the development and implementation of the tax policy simulation and forecasting models authorized pursuant to 1999, 338:23. The persons to whom such disclosure may be made shall include subcontractors to the consultant specifically approved pursuant to the contract with the fiscal committee. No disclosure shall be made which would violate the provisions of any federal or state compact or agreement for the exchange of information between the department of revenue administration and the Internal Revenue Service of the United States or any other state. Officers, employees, or approved subcontractors of the consultant having in their custody or control any confidential taxpayer information obtained from the department pursuant to this paragraph shall be subject to the provisions of RSA 21-J:14.

II. Any database developed by the consultant or other person which contains confidential information that identifies, or permits identification of, particular tax returns or taxpayers disclosed pursuant to paragraph I shall reside in the custody of the department of revenue administration.

III. The legislative budget assistant and the department of administrative services are authorized hereby to use computer terminals which access any tax modeling software developed by the consultant pursuant to 1999, 338:23, provided that neither the legislative budget assistant or the department of administrative services shall be permitted access to any individual taxpayer records, returns or information that are not sampled and blurred to prevent identification of the taxpayer and then only if such access is necessary to check the results obtained by using the software.

239:14 Repeal. Section 13 of this act, relative to disclosure of tax information, is repealed.

III. The remainder of this act shall take effect 60 days after its passage.

II. Sections 11 and 13 shall take effect June 6, 2000.

III. Remainder of act shall take effect August 5, 2000)