3/21/02 3042s

3/21/02 3061s

2002 SESSION

02-3157

10/09

SENATE BILL 436

COMMITTEE: Ways and Means

ANALYSIS

This bill allows municipalities the option of lowering the interest rate charged to property owners for property tax payments made for property redemptions.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

3/21/02 3042s

3/21/02 3061s

02-3157

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Two

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

1 New Section; Collection of Taxes; Interest Rate; Local Option. Amend RSA 80 by inserting after section 20-a the following new section:

80:20-b Alternate Interest Rate; Local Option.

I. Unless a town or city adopts a lower rate under paragraph II, a town or city shall assess interest at the rate of 18 percent per annum on payments made in redemption of property under RSA 80:32 or RSA 80:69, or on the payment of subsequent taxes by a person making a redemption under RSA 80:37 or RSA 80:75, III.

II. Any town or city may adopt an alternate interest rate applicable to the payments made in redemption of property under RSA 80:32 or RSA 80:69, or to the payment of subsequent taxes by a person making a redemption under RSA 80:37 or RSA 80:75, III which is less than 18 percent per annum but not less than 7 percent per annum, in the following manner:

(a) In a town, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3, and shall be voted upon by official ballot if that town has adopted the official ballot for the election of officers. A public hearing shall be held at least 15 but not more than 60 days prior to the vote.

(b) In a city or a town with a town council, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such city or town may vote to place the question on the official ballot for any regular municipal election.

III. The vote shall specify the interest rate to be applicable to payments made in redemption of property under RSA 80:32 or RSA 80:69, or to the payment of subsequent taxes by a person making a redemption under RSA 80:37 or RSA 80:75, III. The interest rate shall take effect in the tax year beginning April 1 following its adoption.

IV. A municipality may amend the interest rate provided by this section in the manner described in paragraph II, and may also amend the rate to specify an interest rate of 18 percent per annum.

2 Collection of Taxes; Interest Rate; Reference to Local Option Added. Amend RSA 80:32 to read as follows:

80:32 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 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 percent per annum] the applicable rate under RSA 80:20-b 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 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.

3 Collection of Taxes; Interest Rate; Reference to Local Option Added. Amend RSA 80:37 to read as follows:

80:37 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 or her 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 purchase at the tax sale to be included in his 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 applicable rate [of 18 percent per annum] under RSA 80:20-b 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.

4 Collection of Taxes; Interest Rate; Reference to Local Option Added. Amend RSA 80:69 to read as follows:

80:69 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 percent per annum] the applicable rate under RSA 80:20-b 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.

5 Collection of Taxes; Interest Rate; Reference to Local Option Added. Amend RSA 80:75, III to read as follows:

III. 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 applicable rate [of 18 percent per annum] under RSA 80:20-b 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.

6 Effective Date. This act shall take effect April 1, 2002.