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.
NEW Bills that have recently progressed:
Oregon: OR HB3143
Status: Enrolled on June 23, 2021 – 75% progression
Summary
Delays the 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. This bill also 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.
California: CA SB675
Status: Engrossed on June 2, 2021 – 50% progression
Summary
This bill will add a section to CA property tax code to allow for monthly installment payments.
New Jersey: NJ S3024 & A4821
Status: Introduced on October 19, 2020 – 25% progression
Summary
Prohibits tax collector from selling tax lien of less than $100.
Bills that have recently passed:
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. – Ratified Title
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.
Washington: WA HB1332
Status: Passed on April 16, 2021, Effective April 16th, 2021
Summary
Concerning property tax deferral during the COVID-19 pandemic.
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
No progression, being monitored
Delaware: 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.
The following bills we are no longer following:
Kansas
Introduced on February 23, 2021 – 25% progression
(Died in committee)
HB2418
Summary
Establishing an additional quarterly option for time of payment of property taxes for certain persons 65 years of age and older.
(Died in committee)
Introduced on January 11, 2021 – 25% progression
(Died in committee)
HB2003
Summary
Providing for county treasurers to establish a payment plan for the payment of delinquent or nondelinquent taxes.
Maryland
Introduced on February 8, 2021 – 25% progression
(died in committee)
HB1221
Summary
Prohibiting the amount of any lien for unpaid charges for water and sewer service from being considered in determining the amount of total taxes on a property for purposes of a certain requirement that certain owner-occupied property in Baltimore City be withheld from tax sale.
Missouri
Introduced on January 6, 2021 – 25% progression
(died in committee)
HB91
Summary
Changes the date on which property taxes become delinquent. The governing body of any county, excluding township counties, may by ordinance or order provide for the payment of all or any part of current real and personal property taxes which are owed, at the option of the taxpayer, on an annual, semiannual, or quarterly basis at such times as determined by such governing body.
Introduced on March 1, 2021 – 25% progression
(died in committee)
HB1433
Summary
Changes the laws regarding foreclosure by requiring the delinquent taxes of single-family residences be collected through wage garnishment.
