HB 782-FN - AS INTRODUCED
2025 SESSION
25-0486
07/05
HOUSE BILL 782-FN
SPONSORS: Rep. Manohar, Hills. 9
COMMITTEE: Municipal and County Government
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ANALYSIS
This bill:
I. Requires municipalities to post instructions on how to apply for tax exemptions in tax collectors' offices.
II. Increases tax exemption eligibility for certain elderly and disabled persons.
III. Increases eligibility for the low and moderate income homeowners property tax relief program.
IV. Requires the commissioner of the department of revenue administration to submit an annual report detailing the efficacy of the low and moderate income homeowners property tax relief program.
V. Establishes a committee to study the feasibility of certain tax relief and property tax proposals.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0486
07/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Short Title. This act shall be known as the "New Hampshire Fair Property Tax Relief Act".
2 New Section; Taxation; Persons and Property Liable to Taxation; Notice of Property Tax Relief Programs. Amend RSA 72 by inserting after section 6-a the following new section:
72:6-b Notice of Property Tax Relief Programs.
I. Notice of the availability of property tax relief programs, including certain property tax exemptions, credits, abatements, and deferrals, shall be printed on every resident tax bill and posted in every tax collector's office.
II. Notice of a list of all available property tax relief programs, including eligibility criteria for each type of exemption, credit, abatement, or deferral, and instructions on how to apply, shall be printed and posted in every tax collector's office and 2 places where the municipality regularly posts notices of its governing body meetings.
3 Taxation; Persons and Property Liable to Taxation; Exemption for the Disabled. Amend RSA 72:37-b, III(b) to read as follows:
(b) Owns, on December 31 in the calendar year preceding said April 1, net assets not in excess of the amount determined by the city or town for purposes of paragraph I, excluding the value of the person's actual residence and the land upon which it is located up to the greater of 2 acres or the minimum single family residential lot size specified in the local zoning ordinance. The amount determined by the city or town shall not be less than [$35,000] $50,000, which shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region, or, if married, combined net assets in such greater amount as may be determined by the town or city. "Net assets" means the value of all assets, tangible and intangible, minus the value of any good faith encumbrances. "Residence" means the housing unit, and related structures such as an unattached garage or woodshed, which is the person's principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. "Residence" shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.
4 Taxation; Persons and Property Liable to Taxation; Exemption for Deaf or Severely Hearing Impaired Persons; Procedure for Adoption. Amend RSA 72:38-b, III(c) to read as follows:
(c) Owns, on December 31 in the calendar year preceding said April 1, net assets not in excess of the amount determined by the city or town for purposes of paragraph I, excluding the value of the person's actual residence and the land upon which it is located up to the greater of 2 acres or the minimum single family residential lot size specified in the local zoning ordinance. The amount determined by the city or town shall not be less than [$35,000] $50,000, which shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region, or, if married, combined net assets in such greater amount as may be determined by the town or city. "Net assets" means the value of all assets, tangible and intangible, minus the value of any good faith encumbrances. "Residence" means the housing unit, and related structures such as an unattached garage or woodshed, which is the person's principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. "Residence" shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.
5 Taxation; Persons and Property Liable for Taxation; Conditions for Elderly Exemption. Amend RSA 72:39-a, I(c) to read as follows:
(c) Owns, on December 31 in the calendar year preceding said April 1, net assets not in excess of the amount determined by the city or town for purposes of RSA 72:39-b, excluding the value of the person's actual residence and the land upon which it is located up to the greater of 2 acres or the minimum single family residential lot size specified in the local zoning ordinance. The amount determined by the city or town shall not be less than [$35,000] $50,000, and shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region. A city or town may set a combined net assets amount for married persons in such greater amount as the legislative body of the city or town may determine. "Net assets" means the value of all assets, tangible and intangible, minus the value of any good faith encumbrances. "Residence" means the housing unit, and related structures such as an unattached garage or woodshed, which is the person's principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. "Residence" shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.
6 Taxation; Persons and Property Liable to Taxation; Procedure for Adoption and Modification of Elderly Exemption. Amend RSA 72:39-b, II to read as follows:
II. An elderly exemption, based on assessed value for qualified taxpayers, may be granted for a different dollar amount determined by the town or city, to a person 65 years of age up to 75 years, to a person 75 years of age up to 80 years, and to a person 80 years of age or older. To qualify, the person must have been a New Hampshire resident for at least 3 consecutive years, own the real estate individually or jointly, or if the real estate is owned by such person's spouse, they must have been married to each other for at least 5 consecutive years. In addition, the taxpayer must have a net income in each applicable age group of not more than a dollar amount determined by the town or city of not less than $13,400 or, if married, a combined net income of not more than a dollar amount determined by the town or city of not less than $20,400; and own net assets not in excess of a dollar amount determined by the town or city of not less than [$35,000] $50,000, which shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region, excluding the value of the person's residence or, if married, combined net assets not in excess of a dollar amount determined by the town or city of not less than [$35,000] $50,000, which shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region, excluding the value of the residence. Under no circumstances shall the amounts of the exemption for any age category be less than $[5,000] $7,500, which shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region. The combined net asset amount for married persons shall apply to a surviving spouse until the sale or transfer of the property by the surviving spouse or until the remarriage of the surviving spouse.
7 Education; School Money; Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:57, II to read as follows:
II. Residents shall apply to the department of revenue administration for such tax relief. The department of revenue administration shall establish an online application tool or portal to enable residents to apply online for such tax relief.
8 Education; School Money; Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:57, III(c) to read as follows:
(c) Realizes total household income of:
(1) [$37,000] $100,000 or less if a single person;
(2) [$47,000] $110,000 or less if a married person or head of a New Hampshire household.
9 New Subparagraph; Education; School Money; Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:57, III by inserting after subparagraph (c) the following new subparagraph:
(d) The values in subparagraph (c) shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region.
10 Education; School Money; Low and Moderate Income Homeowners Property Tax Relief. Amend RSA 198:57, IV(d) to read as follows:
(d) Multiply the product of the calculation in subparagraph (c) by the following percentage as applicable to determine the amount of tax relief available to the claimant:
(1) If a single person and total household income is:
(A) less than [$23,100] $86,100, 100 percent;
(B) [$23,100] $86,100 but less than [$27,800] $90,800, 60 percent;
(C) [$27,800] $90,800 but less than [$32,400] $95,400, 40 percent; or
(D) [$32,400] $95,400 but less than or equal to [$37,000] $100,000, 20 percent.
(2) If a head of a New Hampshire household or a married person and total household income is:
(A) less than [$29,400] $92,400, 100 percent;
(B) [$29,400] $92,400 but less than [$35,300] $98,300, 60 percent;
(C) [$35,300] $98,300 but less than [$41,100] $104,100, 40 percent; or
(D) [$41,100] $104,100 but less than or equal to [$47,000] $110,000, 20 percent.
(3) The values in subparagraphs (1) and (2) shall be adjusted for inflation annually based upon the Bureau of Labor Statistics' consumer price index, northeast region.
11 Education; School Money; Low and Moderate Income Homeowners Property Tax Relief; Rulemaking; Forms; Notice. Amend RSA 198:58, IV to read as follows:
IV. The commissioner shall publicize notice of the tax relief provisions in a suitable manner, including printing and posting a notice in a public space in the office of the department of revenue administration and posting a notice on the department's website.
12 New Paragraph; Education; School Money; Low and Moderate Income Homeowners Property Tax Relief; Rulemaking; Forms; Notice. Amend RSA 198:58 by inserting after paragraph IV the following new paragraph:
V. The commissioner of the department of revenue administration shall submit an annual report within 90 days after the close of each fiscal year with the governor, the president of the senate, the speaker of the house of representatives, the chairperson of the fiscal committee of the general court, the senate clerk, the house clerk, the members of the New Hampshire congressional delegation, and the state library. The report shall describe the activities and efficacy of the low and moderate income homeowners property tax relief program established in RSA 198:57, including a detailed account of all moneys received and expend on behalf of the program since the last annual report, the total amount of tax relief provided, the number of program participants, and the fiscal impact of the program on the state. The report shall also include any recommendations for further legislation regarding the low and moderate income homeowners property tax relief program, and such other relevant matters as the commissioner shall determine.
13 Education; School Money; Low and Moderate Income Homeowners Property Tax Relief; Refund of Tax Claims. Amend RSA 198:61 to read as follows:
198:61 Refund of Tax Claims. The department of revenue administration shall review a claim for tax relief filed with it and, if such claim is determined to be valid, shall certify such amount to the state treasurer within [120] 90 days who shall pay such claims from funds in the education trust fund. Such sums are hereby appropriated and the governor is authorized to draw a warrant from the education trust fund to satisfy the state's obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of revenue administration shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the payment of valid claims. The department shall notify a claimant whose claim is rejected in whole or in part of such determination within [90] 60 days of the department's receipt of the claim and all required documentation.
14 Committee Established. There is established a committee to study capping property taxes at a certain percentage of annual household income, automatically providing tax relief for seniors and low-income seniors who qualify for the low and moderate income homeowners property tax relief program, and imposing an additional property tax on certain luxury residential properties.
15 Membership and Compensation.
I. The members of the committee shall be as follows:
(a) Five members of the house of representatives, 2 of whom shall be from the ways and means committee, and 2 of whom shall be from the municipal and county government committee, with at least one member of the minority party to be included among the 5 members, to be appointed by the speaker of the house of representatives.
(b) Three members of the senate, appointed by the senate president.
(c) The chairperson of the assessing standards board, or designee.
(d) The commissioner of the department of revenue administration, or designee.
(e) One member appointed by the New Hampshire Municipal Association.
(f) One member appointed by the New Hampshire Association of Assessing Officials (NHAAO).
II. Legislative members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
16 Duties. The committee shall study the feasibility of, and any measures and legislation necessary, to:
I. Cap property tax liability at a certain percentage of annual household income.
II. Provide tax relief for seniors and low-income seniors by automatically enrolling certain qualifying residents in the low and moderate income homeowners property tax relief program.
III. Impose an additional residential property tax on luxury residential properties that are given a certain valuation..
17 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. A majority of the appointed members of the committee shall constitute a quorum.
18 Report. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2025.
19 Prospective Repeal. RSAs 198:56 - 198:61, relative to the low and moderate income homeowners property tax relief program, are repealed.
I. Sections 14-18 shall take effect upon this act's passage.
II. Section 19 of this act shall take effect July 1, 2036.
III. The remaining sections of this act shall take effect July 1, 2026.
25-0486
Revised 1/28/25
HB 782-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | $0 | $0 | $74,000 | ||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill proposes the NH Fair Property Tax Relief Act, a comprehensive program that would provide local property tax and statewide education property tax relief to disabled, deaf, elderly and low and moderate income taxpayers.
The Department of Revenue Administration states the changes in the exemptions for disabled, deaf and elderly taxpayers will result in a shift of the tax burden among taxpayers, however it will not impact local revenue.
The Department does not have all the data necessary to determine the fiscal impact of expanding the household income thresholds for the low and moderate income program. The Department anticipates it will require a tax examiner II position beginning in FY 2028 at a cost of approximately $74,000 each year to address the anticipated increase in low and moderate applications and the decreased time frame to certify low and moderate program relief. The Department anticipates the changes to the low and moderate income program will increase Education Trust Fund expenditures by an indeterminable amount beginning in FY 2029 and each year.
AGENCIES CONTACTED:
Department of Revenue Administration