SB357: authorizing municipalities to adopt quarterly billing of taxes.

CHAPTER 153

SB 357 – FINAL VERSION

03/17/04 0817s

22Apr2004… 1188h

2004 SESSION

04-3058

08/09

SENATE BILL 357

AN ACT authorizing municipalities to adopt quarterly billing of taxes.

SPONSORS: Sen. Odell, Dist 8; Sen. Gallus, Dist 1; Rep. Gould, Rock 77; Rep. Theberge, Coos 3

COMMITTEE: Ways and Means

ANALYSIS

This bill authorizes municipalities to adopt quarterly billing of taxes.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/17/04 0817s

22Apr2004… 1188h

04-3058

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT authorizing municipalities to adopt quarterly billing of taxes.

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

153:1 New Section; Quarterly Collection of Taxes. Amend RSA 76 by inserting after section 15-a the following new section:

76:15-aa Quarterly Billing of Taxes in Certain Towns and Cities. Any city or town which has adopted an optional fiscal year may adopt a system for quarterly billing and collection of taxes as provided in RSA 76:15-b.

I. In a city or town that adopts the provisions of RSA 76:15-b, III, the first quarterly bill shall be due and payable on April 1 during the 6-month conversion period prior to the fiscal year beginning on July 1. This bill shall be an amount based on 1/4 of the total previous year’s complete city or town, school, and county levy. The entire amount collected on April 1, except for the county portion, shall be credited to the city or town to fund the 6-month conversion period budget as adopted by the legislative body.

(a) For the purposes of RSA 80:19, the assessment date for the tax bills due and payable on April 1 of the year of conversion to quarterly tax billing shall be that same date of April 1.

(b) Thereafter, beginning with the newly adopted fiscal year beginning July 1, tax payments shall be due as provided in paragraph II.

II. In any city or town which has adopted both an optional fiscal year and quarterly billing, taxes shall be collected in the following manner:

(a) Tax payments shall be due July 1, October 1, January 2, and March 31 of each fiscal year to fund the optional fiscal year budget which is the basis upon which the tax rate shall be established by the department of revenue administration.

(b) A quarterly billing of the taxes to be due in any tax year shall be computed by taking the previous year’s assessed valuation times the previous year’s tax rate, as determined by the department of revenue administration, divided by 4; provided, however, that whenever it appears to the assessors that certain individual properties have changed in valuation, they may use the current year’s appraisal times the previous year’s tax rate divided by 4 to compute the quarterly payment. Quarterly payments of taxes assessed under this section shall be due and payable on July 1 and October 1. For the purpose of the quarterly payments, a list of assessed property shall be committed by the board of assessors with warrants under their hands and seal directed to the collector no later than May 15. The collector shall mail all the bills for the 2 quarterly payments no later than 30 days before their due dates. The collector shall receive such payments and credit the amount paid towards the amount of the taxes eventually assessed against the property.

(c) Payments of the remainder of the taxes, minus the 2 quarterly payments due on July 1 and October 1 of that year, shall be due and payable in 2 equal billings on January 2 and March 31. For the purpose of these final remaining quarterly payments, the assessor shall commit warrants to the collector. The collector shall mail all the bills for the 2 remaining tax payments no later than 30 days before their due dates. For purposes of RSA 76:16, RSA 76:16-a, and RSA 76:17, the “notice of tax” shall mean the date the board of tax and land appeals determines to be the last date of mailing of the January 2 quarterly tax bill, which bill is based on the current year’s tax rate and assessments.

(d) For the purpose of establishing the real estate tax lien under the provisions of RSA 80:59, for the tax bills due and payable each year after the adoption of quarterly tax billing, the real estate of every person or corporation may be subject to the tax lien procedure by the collector, in case all taxes against the owner shall not be paid in full on or before April 1 next after its assessment.

III. If, subsequent to the collector issuing quarterly bills, the assessors are made aware of a change in ownership in a parcel so billed, the assessors shall amend the tax list and notify the collector, who, upon the request of the new owner, shall cause to be mailed to the new owner a statement of account showing the balance due on the current quarterly billing.

IV. Interest at the rate of 12 percent per annum shall be charged on all taxes not paid on or before their due dates or 30 days after mailing, whichever is later.

153:2 Resident Taxes; Definitions. Amend RSA 72:1-d, I(b)–(c) to read as follows:

(b) In towns that bill semiannually, pursuant to RSA 76:15-a, the date the town mails the second tax bill to the taxpayers; [and]

(c) In towns operating with an optional fiscal year, pursuant to RSA 31:94-a or a special legislative act, the date the town mails the first tax bill to the taxpayers, provided that first tax bill establishes the total tax liability for the tax year and the bill includes notice that abatements must be sought from the first bill[.]; and

(d) Notwithstanding subparagraph (c), in municipalities that bill quarterly, pursuant to RSA 76:15-aa, the date the municipality mails the final tax bill to the taxpayers.

153:3 Apportionment, Assessment and Abatement of Taxes; Definitions. Amend RSA 76:1-a, I(b)–(c) to read as follows:

(b) In towns that bill semiannually, pursuant to RSA 76:15-a, the date the town mails the second tax bill to the taxpayers; [and]

(c) In towns operating with an optional fiscal year, pursuant to RSA 31:94-a or a special legislative act, the date the town mails the first tax bill to the taxpayers, provided that first tax bill establishes the total tax liability for the tax year and the bill includes notice that abatements must be sought from the first bill[.]; and

(d) Notwithstanding subparagraph (c), in municipalities that bill quarterly, pursuant to RSA 76:15-aa, the date the municipality mails the final tax bill to the taxpayers.

153:4 Collection of Taxes; Local Option. Amend RSA 76:15-b to read as follows:

76:15-b Local Option.

I. Other provisions of law to the contrary notwithstanding, taxes shall be collected in any town or city in a manner pursuant to RSA 76:15-a if said town or city, by majority vote of the governing body, adopts the provisions thereof. A town or city which adopts the provisions of RSA 76:15-a may rescind said adoption by majority vote of the governing body, and the general statutes relating to collection of taxes shall once again apply.

II. Taxes shall be collected in any town or city in a manner pursuant to RSA 76:15-aa, if said town or city, by majority vote of the legislative body, adopts the provisions thereof. A town or city which adopts the provisions of RSA 76:15-aa may rescind said adoption by majority vote of the legislative body, and the general statutes relating to collection of taxes shall once again apply.

III. Any city or town may, by majority vote of the legislative body, adopt a fiscal year running from July 1 to June 30 of the following year. In conjunction with that vote, the city or town is also authorized, by majority vote, to adopt a budget for the purpose of funding a 6-month conversion period through the adoption of a system for quarterly collection and billing of taxes as provided in RSA 76:15-aa.

153:5 Applicability. The provisions of this act shall not apply to the city of Concord while 1994, 203 as amended by 1997, 115 remains in effect.

153:6 Effective Date. This act shall take effect 60 days after its passage.

(Approved: May 24, 2004)

(Effective Date: July 23, 2004)