Tax liens up sharply in many local towns

LACONIA — With the sour economy the number of tax liens has risen significantly in several Lakes Region municipalities. In April of each year, tax collectors place liens on properties in the amount of taxes incurred in the prior tax year that have not been paid.

In Tilton, the number of liens jumped from 81 in 2008 to 163 in 2009, an increase of 49-percent. In Laconia, the numbers rose from 320 to 415, a 30-percent increase. In Gilford, there were 220 liens in last year and 258 this year, a rise of 17-percent.

On the other hand, Meredith and Belmont posted modest increases. In Meredith the number of liens crept from 249 to 254, up just 2-percent, In Belmont, Tax Collector Cythia DeRoy said that the numbers climbed 12-percent, but explained that the increase was skewed by three developers, who after subdividing and developing properties in current use failed to pay the land use change tax when their projects failed to sell. Excluding the developers, she said, the number of liens actually dropped 2-percent.

Once a lien is placed on a property, the interest rate on delinquent property taxes rises from 12-percent to 18-percent and after two years the municipality may take the property by tax deed.

Last week the Senate Public and Municipal Affairs Committee voted to kill a bill adopted by the House of Representatives that would reduce the interest rates on delinquent taxes from 12-percent to 8-percent (pre-lien) and from 18-percent to 12-percent (post lien). The House agreed with the bill's sponsor that the rates are "usurious" and municipalities are reaping revenue by borrowing at 3-percent while charging 12-percent and 18-percent. However, the Senate committee agreed with the New Hampshire Municipal Association that lowering the rates would encourage delinquent taxpayers to defer their tax payments in favor of paying other debts bearing higher interest rates. The association also noted that the law provides for addressing delinquencies case by case by wither setting up a payment schedule or forgiving some or all interest according to circumstances of the particular taxpayer. The rates, the association insisted, provide an effective incentive for the timely payment of property taxes.