Legislative Updates
By Staci Hardy, VP Internal Audit & QC Manager
LERETA’s compliance team regularly monitors and tracks statewide property tax legislation that impacts tax service for our customers. This quarter we are including details on introduced legislation and the progression of seven new bills that we are following. None of these will have any impact to LERETA’s processes at this time, but they are beneficial to review.
This legislative update is provided by LERETA as a service to its customers. It should not be construed as legal advice or legal opinion. The contents are intended for general informational purposes only, and you are urged to consult your own attorney regarding the law and specific legal questions you have. LERETA does not guarantee the accuracy, reliability or timeliness of the information contained in its legislative updates.
Newly Introduced Bills
West Virginia: WV SB552
Status: Introduced February 1, 2022
Summary
Relating to tax sale process (various updates). Chapter 11A. Collection and Enforcement of Property Taxes. §11A-1-8. Notice of time and place for payment; mailing of tax tickets. Article 2. Delinquency and Methods of Enforcing Payment. §11A-3-8. Certification of property to the Auditor.
Kentucky: KY HB245
Status: Introduced January 28, 2022
Summary
Amend KRS 134.504 to require the allowance of a mass foreclosure procedure in the terms of a contract between the Department of Revenue and a county attorney; amend the fees a county attorney may receive in the process of litigation for the collection of a certificate of delinquency; create new sections of KRS Chapter 68 to establish a mass foreclosure process for counties to use in the collection of delinquent tax bills.
Missouri: MO HB2522
Status: Introduced January 24, 2022
Summary
Changes the laws regarding tax collection by prohibiting the foreclosure of a principal residence for delinquent property taxes and authorizing other methods of collection.
West Virginia: WV HB3253
Status: Introduced January 12, 2022
Summary
ARTICLE 1. ACCRUAL AND COLLECTION OF TAXES.
§11A-1-3. Accrual; time for payment; interest on delinquent taxes.
(a) All current taxes assessed on real and personal property may be paid in two installments. The first installment shall be payable on September first of the year for which the assessment is made and shall become delinquent on October first; the second installment shall be payable on the first day of the following March and shall become delinquent on April first. Taxes paid on or before the date when they are payable, including both first and second installments, shall be subject to a discount of two and one-half percent. If taxes are not paid on or before the date on which they become delinquent, including both first and second installments, interest at the rate of five percent per annum shall be added from the date they become delinquent until paid: Provided, that other than a statutory late fee and actual costs, no other charges may be levied.
(b) With regard to real and personal property taxes, when any return, claim, statement or other document is required to be filed, or any payment is required to be made within a prescribed period or before a prescribed date, and the applicable law requires delivery to the office of the sheriff of a county of this state, the methods prescribed in §11-10-5f of this code for timely filing and payment to the Tax Commissioner or Department of Tax and Revenue shall be the same methods utilized for timely filing and payment with such sheriff. Nothing contained in this subsection (b) shall prohibit the sheriff from establishing additional methods of payment in accordance with the provisions of §11A-1-8a of this article.
West Virginia: WV SB36
Status: Introduced January 12, 2022
Summary
Requiring notice be sent to owners of record before real property can be sold due to nonpayment of taxes.
Alabama: AL HB106 & SB128
Status: Introduced January 11, 2022
Summary
Existing law provides for the sale of property for unpaid taxes through public auction. The public auctions are required to be held in person. This bill would authorize the tax collecting official of a county to conduct public auctions through an online method and would provide procedures for the use of an online public auction for the collection of delinquent property taxes.
Indiana: IN HB1263
Status: Introduced January 10, 2022
Summary
Sewer and storm water fees incurred by tenants. Establishes billing procedures for municipal sewage or storm water user fees assessed for real property that is occupied by someone other than the owner. Provides that a lien does not attach for user fees assessed against real property occupied by someone other than the owner under certain circumstances. Requires the assessing entity to release certain liens and delinquent user fees upon receipt of a verified demand in writing from the owner.
Recently Passed Bills
Federal Legislation
The Office of the Comptroller of the Currency (OCC), Treasury; the Board of Governors of the Federal Reserve System (Board); and the Federal Deposit Insurance Corporation (FDIC).
Status: Passed. Effective date: April 1, 2022; Compliance date: May 1, 2022
Summary
The OCC, Board, and FDIC are issuing a final rule that requires a banking organization to notify its primary Federal regulator of any “computer-security incident” that rises to the level of a “notification incident,” as soon as possible and no later than 36 hours after the banking organization determines that a notification incident has occurred. The final rule also requires a bank service provider to notify each affected banking organization customer as soon as possible when the bank service provider determines that it has experienced a computer-security incident that has caused, or is reasonably likely to cause, a material service disruption or degradation for four or more hours.
District of Columbia: DC B24-0260
Status: Passed on July 21, 2021; Effective immediately; Expires May 5, 2022
Summary
To amend, on a temporary basis, section 47-1332 of the District of Columbia Official Code to cancel the tax sale for Class 1 and Class 2 properties in calendar year 2021, and to require that notice of the cancellation be mailed to affected property owners.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “Real Property Tax Sale COVID-19 Equitable Temporary Amendment Act of 2021”.
Sec. 2. Section 47-1332 of the District of Columbia Official Code is amended as follows: (a) Subsection (a) is amended by striking the phrase “(c) and (d)” and inserting the phrase “(c), (d), and (d-1)” in its place.
(b) A new subsection (d-1) is added to read as follows:
“(d-1)(1) No tax sale for Class 1 or Class 2 properties shall be held during calendar year 2021.
“(2) The Chief Financial Officer shall mail notice of the cancellation to each
person who was mailed a notice of tax delinquency pursuant to § 47-1341(a) to the same address to which the notice of tax delinquency was mailed.”.
Sec. 3. Fiscal impact statement.
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
Sec. 4. Effective date.
(a) This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December.
Washington: WA HB1410
Status: Passed on May 12, 2021; Effective January 1, 2022
Summary
An act to protect owners from foreclosure. Changes computation of delinquent tax penalties and interest.
New Hampshire: NH HB383
Status: Passed on April 26, 2021; Effective April 1, 2022
Summary
Relative to the quarterly or semi-annual collection of taxes in certain municipalities.
Semi-Annual Collection of Taxes in Certain Towns and Cities. Amend RSA 76:15-a, III to read as follows:
III.(a) Notwithstanding the provisions of paragraphs I and II, any municipality affected either by a change in adequate education grants or excess tax amounts, determined pursuant to RSA 198:41, or by a change of 15 percent or more in the amount of all property taxes to be raised for the current year as compared to the previous year, may apply to the commissioner of revenue administration on forms prescribed by the commissioner to adjust the 1/2 of the previous year’s tax rate by an amount sufficient to collect 1/2 of the estimated increase or decrease in the [local school tax] city or town, school, or county taxes resulting from the change.
(b) The department of education shall certify, no later than November 15, to the commissioner of the department of revenue administration the difference in the amount of the adequate education grants and excess tax amounts between the current fiscal year and the forthcoming fiscal year for every municipality.
(c) Any municipality requesting an adjusted rate for the semi-annual bill shall submit such request to the commissioner of the department of revenue administration by April 1 prior to the issuance of the semi-annual bill.
(d) The department of revenue administration shall expedite certified adjusted rate applications.
2 Assessment; Quarterly Billing of Taxes in Certain Towns and Cities. Amend RSA 76:15-aa, V(a) to read as follows:
V.(a) Notwithstanding the provisions of paragraphs II and III, any municipality with quarterly billing affected either by a change in adequate education grants or excess tax amounts, determined pursuant to RSA 198:41, or by a change of 15 percent or more in the amount of all property taxes to be raised for the current year as compared to the previous year, may apply to the commissioner of revenue administration on forms prescribed by the commissioner to adjust the 1/4 of the previous year’s tax rate by an amount sufficient to collect 1/4 of the estimated increase or decrease in the July and October quarterly bills in [local school tax] city or town, school, or county taxes resulting from the change.
Veto Bills
California: CA SB675
Status: Veto
Summary
This bill will add a section to CA property tax code to allow for monthly installment payments.
No Progression (Being Monitored)
Indiana: HB 1552
Status: Introduced January 14, 2021
Summary
Sewer and storm water fees incurred by tenants. Establishes billing procedures for municipal sewage or storm water user fees assessed for real property that is occupied by someone other than the owner. Provides that a lien does not attach for user fees assessed against real property occupied by someone other than the owner under certain circumstances. Requires the assessing entity to release certain liens and delinquent user fees upon receipt of a verified demand in writing from the owner.
Delaware: DE HB12
Status: Introduced December 4, 2020
Summary
This Act fully exempts county property taxes and local school taxes for a disabled veteran with a 100% VA rated service-connected, permanent, and total disability or for a disabled veteran who is receiving 100% disability compensation due to individual unemployability. The 100% rating and disability compensation is determined by the United States Department of Veterans Affairs. This Act sets forth the minimum requirements that a claimant in any county must meet in determining eligibility for the exemption. Each county may impose additional requirements as necessary for eligibility. The minimum requirements are as follows: (1) the disabled veteran must be legally domiciled in the State for a period of time established by the county; and (2) the property for which the exemption is sought must be solely owned by the disabled veteran (or jointly with spouse) and used as his or her primary place of residence
New Jersey: NJ S3024 & A4821
Status: Introduced on October 19, 2020
Summary
Prohibits tax collector from selling tax lien of less than $100.
