A. UNITED STATES DEPABIft'ETT 0^ AGRICULTURE Bureau of Agricultural Economics Division of Agricultural Finance UNIV O DOCUMENTS J EP November 5, l r <3 r / ^ ~ .^ TAX DELINQUENCY 0E RURAL 'REAL ESTATE IN 192 NSW HAMPSHIRE TOWNS, 1928-33 Rural real-estate tax delinquency on the 1932 levies in 192 New Hampshire towns!/ involved nearly 326,000 acres, an increase of 87 percent over the. acreage delinquent on the 1923 levies. During the same period the amount of taxes delinquent increased 69 percent. Much of this delinquency is of a chronic character. Not only did delinquent acreage increase, "but delinquency per acre also increased. At the end of 1932 the period of de- linquency, for all properties then involved, averaged 2.5 years. During the five years 1928-32, tax certificates, or tax liens, were sold against about 37 percent of the delinquent acreage, _?./ and tax deeds were given for about 3 percent as many properties as were covered "by these tax certificates. By the end of 1931 more than half the acreage delinquent on- the 1928 and later levies had "been cleared and more than half the certificates had "been redeemed. This survey was made under a Civil Works project administered "by the Bureau of Agricultural Economics, assisted "by the Agricultural Experiment Station of New Hampshire. Reports have "been issued recently for all States except California, Florida, Georgia, Illinois, Kansas, Kentucky, Maine .Minnesota Montana, New Jersey, North Carolina, and Virginia, and reports for these States will follow as the material "becomes available. See notenage 5 f° r a further description of the study. l/ The towns are widely scattered over the State and all counties are represented. Comparisons given "by counties are "based entirely on such area within the county as is covered "by the to^ms for which data are available. The figures given, both for the counties and for the State, understate the amount of delinquency and exaggerate the rate of increase "because in part of the towns taxes are not considered delinquent for some months after the due date and in the earlier years more of the delinquency was paid during these months than was the case in later years. 2/ Tax sale data are available for only 190 of the 192 towns, which tends to understate slightly the proportion of delinquent properties sold. On the other hand, the comparisons given exaggerate the proportion sold to the extent tnat the delinquency data do not include all properties on which the taxes were unpaid on the due date (see footnote 1). The delinquent area in 1928 equaled 10 percent of the area in farms in the 192 towns. The corresponding figure for 1932 was 19 percent. Com- parison cannot be made with total area as total area figures are not avail- able "by towns. In the towns here included is located about 87 percent of the farm area of the State. The comparison with area in farms is probably more significant than a comparison with total area as most of the delin- quency reported was on farm land. The area delinquent in 1932 was dis- tributed by types as follows: 76 percent in farms, l6 percent in forest, and 8 percent in miscellaneous tynes or not classified. Relative increases in delinquency for the reporting area varied among the counties and in any given countj'' were not always the same for area de- linquent and amount of t axes delinquent. The greatest percentage increase in taxes delinquent for the period was 197 percent, in Carroll County, and the least increase was 20 percent, in Strafford County. The delinquency data cover all towns in both these counties. Payments made during the period covered by the survey cleared 57 per- cent of the acreage which had become delinquent on the levies of 1 C) 28 to 1931 and reduced the total delinquency of these years by 53 percent. The smaller percentage reduction for taxes th^n for acreage is explained by the fact that many of the nayments made were on properties delinquent on only one levy, whereas many of the properties on which the taxes remained unpaid were delinquent on two or more levies. About U5 percent of the properties reported delinquent during the five years were delinquent on the 1932 levies. Of these the largest group began with the 1928 levies, the first year covered by the study. The next largest group be^an with the 1932 levies, and the third group began with the 1931 levies. The large number of properties appearing in 1928 indicates the probability that many of them had been delinquent even before that year. No consistent differences in average size appear between grouos of proper- ties showing different periods of delinquency. Sales of tax certificates, or tax liens, in 190 to^ms, covered 2U8.233 acres compared with 66U,95^ acres which became delinquent in 192 towns. 3/ The number of acres against which tax certificates were sold annually increased 379 percent from 1928 to 1932 compared with the increase of 87 percent in acres delinquent. At the end of the tax year 1931 the acreage on which delinquency had not been terminated totaled 227,^09 acres, all of which was eligible for sale at any time, on U-weeks' notice. In 1928, 76 percent of the certificates sold were "-ourchased" by public buyers (i.e. town, county, or State). This proportion increased each year till in 1932 it stood at 89 percent of the total. This indi- cates that a small and decreasing number of individuals were willing and able to pay the delinquent taxes. 2J Includes those carried over from years previous to 1928. 3. For the F>-year -period, 5^ percent of the oroperties sold were later redeemed. The proportion redeemed from each years' sales decreased from 67 percent in 1928 to; .U2 percent in 1932. There was a greater decline in the proportion redeemed from private "Olivers than in that redeemed from public "buyers. In general, assessed values averaged higher for -properties redeemed than for those -on redeemed. The number of acres for which tax deeds were given from 192? to 1932 equaled about U percent of the number against which tax certificates were sold. The largest number of deeds given in any one year was 73' i- n 1933 • The situation discussed above, and shown "by the following tables, indicates a rapid increase in rural tax delinquency. It is apparent, however, that only a minor part of such delinquency led to dispossession of title, desoite the fact that tax certificates were sold against a large number of properties. In many cases the taxes are paid soon after becoming delinquent. Many of the remaining delinquencies a re allowed to continue without further action, on the assumption that they will he paid. The following tables show summaries for 192 New Hampshire towns. The area in farms and the number of farms for the 192 towns and for the State are shown in table 1. Totals are shown for the towns lying in each county. Total delinquencies reported for the 192 towns comhined, on the levies of each year 1928 to 1932, are shown in table 2. A total of the amount of taxes reported delinquent for all five years can be obtained from table 2 by adding together the figures for all years, as each of these applies only to the levy of the year shown. This cannot be done in the case of the number of properties, or number of acres, or the assessed values of the delinquent properties, because any oroperty may have been delinquent in more than one of the yea.rs shown. Such a property would be included in m^re than one of the annual totals, resulting in duplication if these items were totaled for the period. Figures for "ne^" or first-year delinquencies (that is for delin- quencies originating, or beginning, with each tax year from 1928 to 1932) for the 192 towns are shc-n in table 3- They represent properties which have not before been delinquent during the period studied. For the 1928 levies the figures in table 3 should be identical with those in table 2, because 1928 is the first year covered by the study, and all delinauencies reported for that year appear here as new delinquencies. For the years following 1928 the new delinquencies should be less than the total delin- quency figures given in table 2. They shor the ranidity r*ith which newly delinquent properties were added to those already delinquent. The extent of delinquency in years pri^r to 1928 may be .judged somewhat fr->m the amounts and trends here shown for the years 1928 to 1932. Delinquencies terminated during e^ch tax year from 1928 to 1931 f° r the 192 towns are shn^n in table U. The term "delinquencies terminpted" is here used to indicate that the properties represented did n~t again became delinquent during the tieriod studied. F^r economy in tabulation the termi- nation of delinquencies in 1932 hgs not been tabulated. u. Delinquencies paid during the neriod, classified both "by year of levy and "by year within which paid, are shown for the 192 towns in table 5« Delinquencies paid differ from delinquencies terminated in cases where pay- ment of the delinquency on a given year's levy did not fully clear the property because some other year's levy was still delinquent, and in cases where, though fully cleared, the property again became delinquent during the period covered by the study. •Classification of delinquent r>roT)erties by the -period, or duration, of delinquency is shown for the 192 towns in table 6. Each figure in the body of the table represents the number of the nroperties which first be- came delinquent in the tax year designated on the same line at the left margin, and which were last delinquent in the tax year designated at the head of the column in which the figure is shown. As noted above, for 1922 the first, or new, delinquencies are actually totals. To facilitate comparisons between different areas in the State, summary figures for the 192 towns are given by counties in tables J, 8, and 9. The figures for any county represent totals for those of the 192 towns lying within its borders. Tables 7 and S show by counties selected items of the data given in tables 2 and 3 for the 192 towns combined. The number of acres and the amount of general taxes delinquent on each levy from 1928 to 1932, for the towns in each of the 10 counties, are shown in table J. The number of properties and number of acres first delinquent on each levy from 1928 to 1932. for the reporting towns in each of the 10 counties, are shown in table 8. A part of the delinquency shown in tables 7 an d 8 had been paid prior to the time when this survey was made. The number of acres and amount of general taxes still delinquent when the records were taken are shown for each county in table 9- Tax certificates sold during the years 1928 to 1933 ?- n d still un- redeemed, for 190 towns combined, are sho\-m in table 10. They are classi- fied by public and private buyer. Similarly table 10a shows tax certifi- cates sold but later redeemed. Tax deeds given during the six years fr^m 1928 to 1933 an d the acre- age represented, classified by nublic and privpte buyer are shown in table 11. Certain data from preceding tables are brought together in table 12, permitting a summary view of the development of delinquency during the period covered. Starting with 1928, and cumulating the number of new de- linquencies minus the number of delinquencies terminated, gives yearly totals in excess of the total delinquencies shoTi. The excess is recorded in the column headed "temporarily cleared". For a. given year this excess represents the number n f properties which were temporarily cleared during the year in question, but were delinquent on at least one earlier and one later levy in the period covered. Owners of these properties managed to pay their delinquent taxes and to pay at least one levy before it became delinquent, but later they again fell into arrears. Thus in each year for which both items can be shown the delinquencies naid exceeded delinquencies terminated. 5. The tables show that much of the delinquency in the 192 towns ras chronic and that the delinquent acreage was increasing. Also the average period of delinquency was increasing in length. In no year from 1928 to 1932 did payment of delinquency equal in amount the delinquency on that year's levy. The additional, or new, acreage becoming delinquent year by year fails to account for the increase' in amount of unpaid delinquency. This is indicated by the accumulated unpaid delinquency per acre, which at the end of each tax year was as follows: 70 cents in 1928, $1.02 in 1929. $1-30 in 1930, S1.H2 in 1931, and $1.70 in 1932. The 1928-32 increase is 1U3 percent. The delinquent acreage carried over from year to year indicates that at the end of 1932 the average period of delinquency was 2.5 y^ars. This figure would be raised somewhat if those properties first delinquent on the 1932 levy rere deducted. This indicates that a substantial part of the delin- quency in 1932 had continued year after year without payment. It is delin- quency which threatens to become permanent, representing not slowness of payment but a complete stopping of payment. The number of tax sdes and tax deeds indicates, however, that in relatively few cases was procedure carried to the point of dispossessing the owner of title to the land. The present report is the thirty sixth of a series of State reoorts on the subject. The Bureau previously issued a brief summary of preliminary tabulations for 1,53^ counties in 31 States. Field <*'ork was carried on in more than 2,000 of the 3»071 counties in the country. The State reports represent detailed tabulations now being completed for about 700 counties in the Ug States. The tabulations have been made by the Bureau, with a grant of funds from the Federal Emergency Relief Administration. The first objective of the study was to make available trustrorthy data on the amounts and trends of rural real-estate tax delinquency since 1928. The final objective will be to analyze the causes and significance of this delinquency. The delinquencies reported represent properties of 3 acres or m^re, unplatted and lying outside of incorporated -daces. The "properties'' repre- sent the "parcels" carried ^n the tax records, p»nd thus the number is some- what larger than the number of complete "holdings" vhich -ere delinquent. In some cases the holding of an individual t company is assessed a.nd taxed in more than one parcel. "Tax delinquency" as here used indicotes failure to pay taxes before the date rhen penalty is applicable for nonpayment. In Nev Hampshire property taxes levied in any year are due (penalty date) n n December 1 of the same ye^r. After December 1 the tax is subject to an interest charge :of 10 percent per annum. The towns may sell tax certificates, or tax liens, against all tax delinquent property after giving U-veeks ' notice. These certificates may be -'Urchased by a private party, or by the town, county, or State. If the property is not redeemed vithin two years fr^m the date of sale the -purchaser is entitled to receive a tax deed to the property. 6. Table lrFarra area and number of farms, State of New Hampshire and 192 New Hampshire towns County Number of towns 1_/ Area in farms 2/ : Number of farms 2/ Numbe r 1,000 acres : Thousands Belknap 11 105 : 0.8 Carroll 17 1U5 1.0 Cheshire 23 161 1.1 Coos 13 : 182 1.0 Grafton 31 287 1.7 Hillsborough : 28 : 238 2.0 Merrimack : 26 : 270 : 2.0 Rockingham : 19 : 100 : 1.2 Strafford : 13 : 101 : 1.0 Sullivan : 11 ! 116 0.9 Total State total 3./ : 192 : 252 : 1 . 705 : 1,960 : 12.7 : 1U.9 1/ Number of towns for which delinquency data are available. 2/ Farm area and number of fairs from the 1930 Census of Agriculture. 3./ Includes approximately o0 towns for which delinquency data are not available. Table 2. -Total delinquency of rural real-estate taxes, 192- town total, by year of levy, 1928-32 Year of levy ! P" roperties involved ] Amount of taxes delinquent Number Acres Assessed valuation Number 2,102 Number 17^,636 1,000 dollars Dollars 1928 U.011 119, 6U0 1929 2,229 201,876 ^,509 139,362 1930 2,730 • 228,200 5.290 162,802 1931 3.39^ : 308,110 7,151 223 , 863 1932 : 3.627 325.722 7.533 201 , 725 Table 3-~N ew delinquency of rui^al real-estate taxes, 192-tcvm total: first delinquent on the levy of the year designated, 1928-32 Year of levy P] roperties involved \ Amount of taxes dclinouent Numbe r Acres Assessed valuation Numbe r : Number 1,000 dollars. : .Dollars 192S 1_/ : 2,102 17^.636 U.011 : : 119,6Uo 1929 1,310 105,921 2.U50 : ■' 7U.UUO 1930 : 1.333 : 100,505 ■ 2.U3U 73.520 1931 l,6U 7 1^3. 017 3,500 : 108,076 1932 1,671 lHo,877 3.UU9 : 91 , 660 l/ The 1928 figures represent all rural properties delinquent on the levy of that year. The carryover from previous levies is not known. Table U. -Terminated delinquency of rural real estate taxes, 192-town total: last delinquent on the levy of the year designated, 1928-31 Year \ P: roperties involved Amount 01 levy Numbe r Acres Assessed valuation of taxes delinquent Number Number 1,000 dollars Dollars 1928 658 U-U.097 : 1,136 33.09S 1929 : 729 ! 5M23 : 1,251 : 37,933 1930 s 977 : 67 , 202 : 1,590 : H$, 329 1931 : 1,603 : 130,5^8 3.137 : 97,86s 8. Table 5- _ Pay m snt of delinquency of rural real-estate tastes prior to Anril 193^, 192-to.wn total, "by year of levy, and "by year of payment, levies of 1928-32 BY YEAR 07 LEVY Year Properties involved ] Amount of taxes delinquent Number Acres Assessed : valuation Year : of : levy: ■ 1928 : 1929 1930 1931 1932 Number : 1,26s' ■ : . 1,223 1,^35 : 1,527 : 1,568 Number : 106,130 : 118,550 : 123,266 : 1^5,325 : lU7,Uio 1,000 dollars \ 2,212 : 2.U9U : 2,727 : 3,2Uo 3,205 Dollars • 69.27U 81,U30 : 86,361 : 101,771 ! 83,791 BY YEAR OF PAYMENT Year : paid: 1928 : 129 10,987 2U0 : 6,277 1929 : 1,159 : 99,330 : 2,079 : 65,012 1930 : . 1,196 • 113.388 : 2,392 : • 78,616 1931 : 1,3^1 : 118,070 : 2.U71 : 79.56U 1932 1.533 i 135,292 . : 3.06U : 9M73 1933 1,510 : 1^8,212 3,282 : 86,618 193^ : U8 5,956 157 ! M23 Unknown : 81 : 7,277 156 5.62U Released l/ ! 2h : 2,169 37 1,120 l/ Includes those released or abated TabLe 6.-4lumber of delinquent properties, 192-to™-n total, distributed "by period of delinquency, 1928-31 l/ Levy first Properties last delinquent on levy of: delinquent 1928 1929 1930 : . 1931 192S : • 658 : 193 ! 222 ■ ; 23^ 1929 : 536 1U6 182 1930 : 609 23U 1931 : 953;. ..: !_/ Distribution cannot "be made for 1932 Table 7 --Total delinquency of rural real-estate taxes, 192- towns, by county. and "by year of levy, -1928-32 County 1./ Acreage Genei ral taxes 1928' 1929 1930' 1931 1932 , 1928' 1929 . I.93O. 1931 : 1932 1 • 1,000: 1,000" 1,000: 1,000 1,000 1,000" 1,000 1,000 1,000 1,000 acres acres 11 : acres' acres* acres' dols. : dols. dols. dols. dols. Belknap ! • 7 11 18 17 5 8 7 12 9 Carroll 2 h 6 : 9 9 : 2 U 6- 12 6 Cheshire : 7 : 10 : 12 20 22 : 6 10 10 : 17 lU Coos : 11 11 lU 2U 30 • 10 10 • 13 20 18 Grafton . 36 ! U3 ^3 67 1 60 19 22 2* ! 32 26 Hillsborough: 9 12 : lU : 28 : 26 9 9 : lU 28 23 Merrimack 69 ih 82 81 97 «*i Ug 5 U 50 55 Ro cki ngham - U 5 7 : 9 11 ' 9 7 10 lU : 18 3 1 raf f ord 7 6 ! 5 : 16 11 5 ! |( : U 9 : 6 Sullivan 23 : 26 i 3^ ' 36 ^3 lU 17 : 21 2U 27 -Total r~7 1 : ; 175 , 202 [ 228 ! 308 ! 326 , 120 139 ; 163 , 22U , 202 included. 10. Table g. -New delinquency of .rural real-estate taxes, 192 towns: first delinquent on the levy of year designated, "by county and "by year of levy, 1928-32 County l/ Properties Acreage - « . ♦ • I92g . 1929 : 1930 : 1931 " ; 1932 . I92g; 1929; 1930 : 1931 : 1932 'Number Number' Number: Number: Number 1,000: :acres: ! 7 ! l.OOOi acres: 1,000: acres: 1,000: acres: 1,000 99 • .102 : 69" 120' 116 acres Belknap g : 7 : g : 10 Carroll 1+8 : : 66 S3' 97. 86 : 2 ' 3 : U « 6 6 Cheshire : 93 = g2: 95 : 112 156 : 7 ! 7 ! g 11 ' 12 Coos 157' . 72: go 137.' 120 : 11 : 6 ' 7 15 13 Grafton : 293 .183 ! 175 : 239 169 1 "36 : 20 : 19 : 33 2U Hillsborough : 172 :iH7 160 : 26g : 2^9 : 9 : g : 10 : 19 : 15 Merrimack : 79^ : 36S 35H : 267 : fcl 3 : 69 ■ 1 3^ : 25 : 23 : 3H Rockingham : 76 1 7^ : g2 : 112 : 10g : h t i 3 : k : U : 6 Strafford : 138 : 67 i 69 ■ 167 : 95 : 7 l U l 2 : 11 : 7 Sullivan : 232 1U9 : 166 : 128 : 169 : 23 : 13 1 15 : 13 : lH Total : 2,102 : 1,310 i 1.333 ! L6H7 : I.671 i 175 : 106 : 101 i 1U 3 \ lUl 1/ See table included. 1 for number of towns, in each county, for which data are Table 9-Unpaid delinquency of rural real-estate taxes , April 193^t 192-towns, by county and by year of levy, 19213-32 County l/ Ac :reage —1 \ ■' m *~ General taxes 192S; 1929; 1930 : 1931; 1932 1928' 1929; 1930, ' 1931; 1932 1,000: 1,000: 1.000' 1,000 1,000: 1,000: 1,000 1,000: ?., 000; 1,00^ acres: acres: acres acres acres: dols. ' dols. • dols. : 6*.ols.;dols. Belknap • : 5-! 7 ! g. 12 ' 11 : 3 " 5 1 5 ! : 8 ! 6 Carroll 2/ i 1 ! 2. : 3 2 ' 2/ 1 ' 1 ; i\ \ Cheshire 1 : 1 ' 2 : 5 : 9 ! 1 1 ■ 1 Coos - U : h. 6 : 11 19 : U ! 3 : 5 \ 8 : 12 Grafton 20 : 25 • 23 : 39 : 35 : 9 : 12 13 - . 2,2 : lU Hillsborough : 8 11 13 : 27 : 25 : 7 : 9 , iif . ! 2? : 22 Merrimack ' 5 6 16 : 21 l 23 3 : h 1 <"• , O : 11 : 12 Rockingham : U 5 7 • 9 11 ! 9 ' 1 10 ■ lh : IS Strafford : 1 : 1 2 ! 5 6 1 I 1 i 3 > 2 Sullivan : 19 21 : 25 30 ! 37 : 13 ! 15 : IS : : 22 : 25 ; \\ . Total ! 6? : g2 : 10U : 162 ! 178 ! 50 ' 5S : 76 ' 122 : US 1/ See table 1 for numbc: : of tc )wns , : m eacl 1 coun" by, foi r whicT: 1 data a re included. 2/ Less than 500. 11. Table 10. -Tax certificates sold and ? till unredeemed April 193U, 190-tovm total, "by type of buyer and by year of sale, 1928-33 PRIVATE BUYERS Year Number Acres ! General : taxes : Special assessments Numbe r Number : Dollars : Dollars 192S 25 : 2,568 : 1,726 : 1929 i 6H 3.311 2,086 U 1930 ! 63 1 U.719 2,765 6 1931 : 82 5.877 : 3.809 : 1932 93 7.037 5.068 : 1933 70 ! 6.12U 3.395 : ; 5^ PUBLIC BUYERS l/ 1928 106 5.UUU : 5.011 ! 16 1929 ! 188 : 17,^99 9,262 . U 3 1930 2UU 21.0SU 1 11,777 llU 1931 U52 3 U .^38 26,97S ■ 217 1932 739 61,786 U6.22U j 3U6 1933 67s : 65.37S ! Ui,UU3 i 181 \J Includes six certificates representing 1,202 acres and $US1 in taxes reported as sold to public buyers but later assigned or sold to urivate individuals. 12. Table 10a. -Tax certificates sold, and redeemed prior to April 193^, 190- town total, ""by type of buyer and : by year of sale, 1922-33 PRIVATE BUYERS Year Number t Acres : General taxes Special assessments Number ' : Number Dollars Dollars 192S ■ 70 : 5.096 3,100 ' : 1929 78 : 5.635 : 3,968 1930 ' : 77 • ! U,U6l • U,ggl : 1931 S7 • : 7,159 • 5.180 : 1932 : 66 '■ : 6,807 ' : U.090 : 1933 17 * 9U6 : : 513 : PUBLIC BUYERS 1928 : 199 ; : lH,l+l+5 11.25** U2 1929 : 360 : 30,75^ ; : 22,879 : 90 1930 : 1+18 : 36,672 : 29,560 132 1931 566 55,057 UU,590 221 1932 536 : 56,395 Ul,812 202 1933 255 28,387 ' • 17,017 ; i 28 Table 11. -Tax deeds given, 1 90- town total, "by tyne of buyer and "by year of deed, 1923-33 13. | Priva^ be "buyers ' Public "buyers Year Number Acres ■ , Numbe r \ Acres Number Num"ber Number Number 1928 2 iu6 : 1929 : : u 632 1930 ! 3 ! U99 : lU : U,968 1931 : 9 : 171 7 1 398 1932 17 : 1,512 28 : 1,898 1933 20 2,369 ! 53 : U.378 Table 12. -Number of delinquent properties, tax certificates and tax deeds, summarized from tables 2 to 11 By year of ] .cvy By calendar year - Tax : Tax Year Newly Delin- Delin- Total Tempor- certif-: certif- Tax delin- quency : quency delin- arily cates : icates deeds : quent : termi-: nated paid ! quent cleared' 1/ sold : : 2/ : redeemed 1/ given 1928 2,102 658 l,2b8 2,102 HOO: 269 2 1929 1,310 729 : 1,223 : 2,229 525 690: U33 ' u 1930 i 1,333 : 977 I 1,^35 ! 2,730 : 628 : 802: U95 : 17 1931 • L6U7 : 1,603 : 1,527 : 3,39^ : 63U : 1,187: 653 : 16 1932 1,671 1,568 1 3,627 : 1,U 3 U: 602 : U 5 19T5 1,020: 272 : 73 1/ Number of properties clear for the year in question, but later again delinquent. 2./ Includes those later redeemed. 3./ Classified by year within which sold, UNIVCriJ' 3 1262 08929 9183