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.
Bills that have recently passed
Washington: WA HB1410
Status: Passed on May 12, 2021 – Effective 01/01/22
Summary
An act to protect owners from foreclosure. Changes computation of delinquent tax penalties and interest.
District of Columbia: DC B24-0260
Status: Passed on July 21, 2021 – Effective immediately; Expires on 05/05/22
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
Oregon: OR HB3143
Status: Passed on June 8, 2021 – Effective 09/25/21
Summary
Delays to December 15 date on which interest begins to accrue on first one-third of property taxes, and other related charges, that are not paid when due on November 15. Provides for daily, rather than monthly, computation of interest on delinquent property taxes. Permits county to authorize waiver or reduction of interest if taxpayer demonstrates good and sufficient cause for late payment. Defines “good and sufficient cause” as extraordinary circumstance beyond taxpayer’s control that caused late payment. Delays to December 15 date on which interest begins to accrue on first one-third of property taxes, and other related charges, not paid when due on November 15. Takes effect on 91st day following adjournment.
South Carolina: SC H3482
Status: Passed on June 1, 2021, Effective May 17th, 2021 (retroactive)
Summary
Amend Section 12-45-75, Code Of Laws Of South Carolina, 1976, Relating To Installment Payments Of Property Tax, So As To Authorize A County To Establish An Alternative Payment Schedule.
Maryland: MD SB325
Status: Passed on April 13, 2021, Effective June 1st, 2021
Summary
Altering the amount which a person is required to pay the tax collector to redeem property sold at tax sale by limiting taxes, interest, and penalties accruing after the sale to include only delinquent taxes, interest, and penalties; and requiring that certain notices include certain information regarding the taxes included in a redemption payment.
New Hampshire: NH HB383
Status: Passed on April 26, 2021, Effective April 1st, 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.
Washington: WA HB1438
Status: Passed on May 10, 2021, Effective July 25th, 2021
Summary
Expanding eligibility for property tax exemptions for service-connected disabled veterans and senior citizens by modifying income thresholds for eligibility to allow deductions for common health care-related expenses.
Nebraska:NE LB466
Status: Passed on May 5, 2021, Effective May 5th, 2021
Summary
Require the proration of property taxes when residential real property is sold
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
Delaware: DE HB12
Introduced – December 4, 2020 – 25% progression
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.
Indiana: HB1552
Introduced on January 14, 2021 – 25% progression
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
Introduced on December 4, 2020 – 25% progression
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
Introduced on October 19, 2020 – 25% progression
Summary
Prohibits tax collector from selling tax lien of less than $100.