HB681: relative to the allocation of a municipality's share of county taxes.

HB 681-FN-LOCAL - AS INTRODUCED

2003 SESSION

03-0737

10/09

HOUSE BILL 681-FN-LOCAL

AN ACT relative to the allocation of a municipality's share of county taxes.

SPONSORS: Rep. Patten, Carr 7

COMMITTEE: Municipal and County Government

ANALYSIS

This bill changes the allocation of county taxes to a formula based on population, use, and equalized valuations.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0737

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the allocation of a municipality's share of county taxes.

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

1 Hillsborough County; Apportionment of County Taxes; Reference Changed. Amend RSA 24:13-c, X to read as follows:

X. Upon receipt of the annual county budget the department of revenue administration shall examine such budget and delete any appropriation not made in accordance with law. The department shall determine the total amount of funds necessary to be raised by the county tax which shall be apportioned pursuant to RSA [76:1] 24:13-d. The amount of money each municipality is required to contribute to the county shall be forwarded to the county treasurer who shall issue a warrant pursuant to RSA 29:11.

2 New Section; Determination of Contribution of Municipalities. Amend RSA 24 by inserting after section 13-c the following new section:

24:13-d Determination of Contribution of Municipalities. After receipt by the department of revenue administration of the annual county budget, and after examination and review of appropriations as required in law, the determination of the allocation of taxes that each municipality shall assess for their contribution to the county shall be determined using the following factors:

I. One quarter shall be according to the share of population of each municipality in the county, as determined using statistics from the office of state planning.

II. One quarter shall be according to the percentage of use by the residents of each municipality in the county as determined by the county commissioners and approved by the county convention.

III. One half shall be according to the proportional share of the equalized valuation of property.

3 County Treasurers; Tax Warrants to Municipalities in County. Amend RSA 29:11, I to read as follows:

I. The treasurer shall issue a warrant to the selectmen of the several towns in the county liable to pay state taxes, requiring them to assess, collect, and pay to the treasurer, within such time as shall be therein directed, their just proportion of all taxes granted by the county convention according to [their proportion of public taxes for the time being] the allocation of taxes determined in RSA 24:13-d, and shall enforce the collection and payment thereof, together with interest at 10 percent a year from December 17 upon all taxes not then paid, and the county tax assessed against any town shall not be deemed paid until the whole amount of the warrant together with said interest from December 17 to the date of payment has been received by said treasurer. If December 17 [fall] falls upon a Saturday, Sunday, or legal holiday, the due date for payment of taxes shall be the first business day following December 17. If December 17 falls upon a Saturday, Sunday, or legal holiday, the interest payment penalty on taxes not paid when due shall be computed from the first business day following December 17 to the date on which payment is actually made. If the county tax is not paid in full, the county treasurer may petition the superior court in the county in which the town is located, to attach the town's pecuniary assets in the amount owed to the county.

4 Effective Date. This act shall take effect April 1, 2003.

LBAO

03-0737

Revised 2/4/03

HB 681 FISCAL NOTE

AN ACT relative to the allocation of a municipality's share of county taxes.

FISCAL IMPACT:

The New Hampshire Municipal Association and Department of Revenue Administration state this bill will have an indeterminable fiscal impact on local expenditures in FY 2003 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or state and local expenditures.

METHODOLOGY:

The Municipal Association states currently, county taxes are apportioned among the municipalities in a county according to the equalized value of each town and city. This bill would change that allocation formula so that one half is based on the share of the county population located in each municipality, and one half is based on the percentage of use by the residents of each municipality, as determined by the county commissioners and approved by the delegation. This bill would result in some municipalities paying a greater share of their county's taxes, and others paying a smaller scale. The municipalities with a greater population would likely also have a larger percentage of use of county services, and would pick up an extra share of the county tax. The equalized valuation component in the formula would reduce the increase in county tax shifted to the larger municipalities. The Association states the fiscal impact cannot be determined at this time.

The Department of Revenue Administration states there would be a fiscal impact to individual towns within the county, but the extent cannot be determined due to several unknowns, including time periods, dates, and other specific information needed to administer this bill.

The Association of Counties states this bill will have no fiscal impact on county revenue or expenditures.