“Fair Share of Taxes?” Who Isn’t Paying At All? Delinquent Taxes in Nottingham

As of February 6, 2024, the Town of Nottingham was owed $648,306.68 in past-due taxes, with some property owners owing taxes as far back as 2010. This figure is roughly 3% of the annual combined budgets for the school and the town.

In nearly all cases of unpaid taxes, the Town eventually gets paid. Interest of 8% is charged on payments after the due date. If a tax lien is placed on the property, the interest rate rises to 14%. 

By the provisions of RSA 80:38 the town’s tax collector may offer a tax deed to the Town for properties with tax liens. The Town may waive its right to take the deed. Nottingham’s custom is not to take the deed but to wait until the property is eventually sold, and in this sale to collect the back taxes.

Many taxpayers owe trivial amounts. The smallest on this list of unpaid taxes is for $1.01. The small amounts are typically for interest not paid on late taxes. Somewhat larger amounts are typically for undeveloped land. The largest amounts are nearly all for residences. 

The largest tax bill due in January that had not been paid was for $7,588. It has since been paid. In New Hampshire, property tax data are public records. Want to find out what your neighbor is taxed, when they paid, or if they didn’t pay, has the Town placed a lien on their property? It’s all available on the NH Property Tax Kiosk, by town. Data for Nottingham can be accessed here. 

Over 130 taxpayers missed the January 10 deadline for paying their most recent tax bill. Altogether they owed $331,899.71. This bill caught many taxpayers by surprise because it was so much larger than the prior bill. This likely led to many taxpayers having liquidity problems leaving them unable to pay their taxes on time. In spot-checking the list, a significant fraction of these taxpayers have since paid, usually in full, but some have made partial payments. 

About 85 taxpayers have unpaid tax bills with 2023 due dates, totaling $166,748.59. 

One property with a lien on it for unpaid taxes accumulating since 2021 receives the disabled exemption, This exempts $101k of the property from taxation. To be eligible one must be under 65 years old, one’s income must be less than $38k/yr, or $48k/yr if married, and one’s assets excluding one’s home must be less than $180k.

Two properties with unpaid 2023 and 2024 taxes receive the elderly exemption. The income and asset requirements are the same as with the disabled exemption. The exemption starts at $101k at age 65 and increases to $184k at age 80. 

These tax exemptions are set by the town’s voters by warrant article. Hence the exemptions vary considerably from town to town. To compare Nottingham with other towns, see these 2022 data. 

The longest running failures to pay taxes are associated with Cedar Waters. The Town has a long history of disputes with Cedar Waters. In 1985 the owner of Cedar Waters was imprisoned for nearly half a year for failure to get permits for mobile homes he had placed on the property. In 1978 there were contempt charges. In 1988 there was more litigation, and again in 2001.  

I spot-checked some of the most delinquent accounts other than those associated with Cedar Waters. When I could find online information about the owners, I often found that they were over 65. 

The Board of Selectmen has discussed tax delinquencies in the past, particularly those associated with Cedar Waters. Cedar Waters is located on Map 23 of the town’s tax map. Mentions of properties on Map 23 are thus very likely to be the delinquent Cedar Waters properties. 

In their January 12, 2015 meeting the board’s minutes say:

Deed Waivers: Chair Carpenter reviewed the list of properties that need a deed waiver.

Ms. Bonser recused herself from the vote regarding properties located within Cedar Waters.

Motion: Chair Carpenter, second by Ms. Danis to move that the Board of Selectmen waive the deeds and notify the Tax Collector that they will not accept the Tax Collector’s deeds on the following properties, pursuant to NH RSA 80:38: Map 23 Lot 2 Suffix 18, Map 23 Lot 2 Suffix 143, and Map 23 Lot 2 Suffix 100.

Ms. Bonser reviewed that the privately owned properties located at Cedar Waters, are uninhabitable buildings only within Cedar Waters and are more of a liability for the Town to take the deed.

Vote: 2 – 0 in favor.

Motion: Chair Carpenter, second by Ms. Bonser to move that the Board of Selectmen waive the deeds and notify the Tax Collector that they will not accept the Tax Collector’s deeds on the following properties, pursuant to NH RSA 80:38: Map 1 Lot 2, Map 1 Lot 3, Map 3 Lot 10, Map 3 Lot 11 Suffix 6, Map 42 Lot 15, Map 16 Lot 18 Suffix 3, Map 24 Lot 141 Suffix 2, Map 37 Lot 15, Map 8 Lot 13, Map 3 Lot 9 Map 3 Lot 6, Map 61 Lot 13, Map 46 Lot 6, Map 15 Lot 9, Map 43 Lot 21, Map 24 Lot 89, and Map 13 Lot 12.

Mr. Sterndale reviewed the request and reasons for the waivers.

Vote: 3 – 0 in favor.

Mr. Sterndale reviewed the list of properties the Selectmen may consider deeding. Property owners have toward the end of January 2015 to make payment on property taxes before the tax deed takes place.

Spot-checking some of the properties mentioned that are not part of Cedar Waters, most of them are no longer on the list of unpaid taxes.

In the board’s September 24, 2018 meeting the minutes say:

Tax Deed Waiver Process: Mr. Sterndale reviewed the list with the board and asked if he should

continue using the previously used process to determine when a deed should be waived. …Mr. Sterndale completed a review of his recommendation, which included specific reasons why the board might consider waiver, such as deed uncertainty, not becoming a landlord, or the property is for sale. Ms. Andersen asked questions about the properties located within Cedar Waters Village. Mr. Sterndale reported the town hasn’t taken action in the past, because it doesn’t want to own a property that could result in a demolition expense, costing more than what is owed in taxation. Mr. Sterndale stated he would gather additional information to try and answer board questions. Mr. Dumas asked how the town appropriately collects taxes on a property they can’t view. Mr. Sterndale stated he would ask the town assessor’s on how an assessment is generated for the Property. Mr. Sterndale reviewed the properties he wanted Select Board consideration for waiver, which included very small land only parcels, and owner occupied units. Ms. Andersen asked if there are avenues for those owners that have high amounts due to the town; can the town help people find ways to pay their back taxes. Mr. Sterndale reported he isn’t aware of any town program but would discuss available options with the Welfare Director.

This discussion was continued in a following meeting on October 22, 2018:

Motion: by Mr. Dumas that the Select Board waive the deeds and notify the Tax Collector that they will not accept the Tax Collector’s deeds on the following properties, pursuant to NH RSA 80:38. Second by Mr. Bartlett.

Map Lot Sub Street Address

1 2 10 Barrington Road

1 3 12 Barrington Road

1 12 Barrington Road

6 4 118 Smoke Street

8 13 288 Stepping Stones Road

12 9 1 76 Kennard Road

16 18 3 5A Haines Road

20 7 8 63 Priest Road

20 8 1 47 Priest Road

23 2 100 Cedar Waters

23 2 112 Cedar Waters

23 2 143 Cedar Waters

24 89 8 Robin Hood Drive

5 Approved as Amended

24 103 Robin Hood Drive

24 141 2 209 Mill Pond Road

24 143 130 Kelsey Road

28 12 28 Gile Road

37 25 4 1 Camelot Court

39 24 32 South Summer Street

46 6 104 Stevens Hill Road

68 110 3 Seaman's Point Road

Vote: 4 – 0 in favor.

The board reviewed those properties on the list they were not going to consider a waiver. There was agreement to further review

Motion: by Mr. Bartlett to that the Select Board waive the deeds and notify the Tax Collector that they will not accept the Tax Collector’s deeds on the following properties, pursuant to NH

RSA 80:38 and to further consider a future waiver procedure. Second by Mr. Eaton.

Map Lot Sub Street Address

1 1 Barrington Road

5 2 29 Mendum's Landing

5 2 31 Mendum's Landing

Vote: 4 – 0 in favor

Spot-checking some of the properties mentioned that are not part of Cedar Waters, most of them are no longer on the list of unpaid taxes.

As Benjamin Franklin said, “nothing in this world is certain but death and taxes.” In the case of delinquent property taxes, it is often death that triggers the payment of taxes when the property changes ownership.