HB407: allowing municipalities the option of appraising property based on assigned values reflecting the current use of property, and requiring the current use board to adopt criteria for such appraisal.

HB 407 - AS INTRODUCED

2003 SESSION

03-0431

10/09

HOUSE BILL 407

AN ACT allowing municipalities the option of appraising property based on assigned values reflecting the current use of property, and requiring the current use board to adopt criteria for such appraisal.

SPONSORS: Rep. McCormick, Merr 32

COMMITTEE: Municipal and County Government

ANALYSIS

This bill allows towns and cities to adopt a method of appraisal of property for taxation which is based on the assigned values to classes of property based on the current use thereof, and not solely based on market values. The method of appraisal may be used for one or more classes, including residential, commercial, industrial, and utility property.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0431

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT allowing municipalities the option of appraising property based on assigned values reflecting the current use of property, and requiring the current use board to adopt criteria for such appraisal.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Taxpayer Inventory Blanks. Amend RSA 74:4, III - V to read as follows:

III. The blank shall require the following information:

(a) A description of all real estate taxable to the person or corporation;

(b) Other information needed by the assessing officials to assess all the taxable property of the person or corporation either at its true value or at its assigned value, if applicable;

(c) A census of all persons occupying the premises as of April 1, by name and age.

IV. The blank shall include the following statement:

"You may be entitled to the following tax relief: Elderly or Disabled Tax Lien, or an Abatement. For additional information, contact your selectmen or assessor."

V. The blank shall require owners of land classified as open space, or in any class appraised at assigned values under RSA 75:1, II, to indicate whether any changes in the use of the land have been made.

2 Appraisal of Property; Assigned Values Based on Current Use. Amend RSA 75:1 to read as follows:

75:1 How Appraised. The selectmen shall appraise open space land pursuant to RSA 79-A:5, open space land with conservation restrictions pursuant to RSA 79-B:3, land with discretionary easements pursuant to RSA 79-C:7, residences on commercial or industrial zoned land pursuant to RSA 75:11, earth and excavations pursuant to RSA 72-B, and all other taxable property as follows:

I. At its market value. Market value means the property's full and true value as the same would be appraised in payment of a just debt due from a solvent debtor. The selectmen shall receive and consider all evidence that may be submitted to them relative to the value of property, the value of which cannot be determined by personal examination[.] ; or

II. For a municipality which adopts the provisions of this paragraph according to RSA 75:1-a, at the assigned values for any class, type, grade, or location of property based on its current use value as determined by the selectmen or assessors pursuant to criteria in rules of the current use board under RSA 79-A. Current use value means the assessed valuation per acre of a class of land based upon its current use, and not its real estate market value.

3 New Section; Local Adoption of Assigned Values Based on Current Use. Amend RSA 75 by inserting after section 1 the following new section:

75:1-a Local Adoption; Assigned Values Based on Current Use.

I. A town or city may adopt the method of appraisal for purposes of taxation under RSA 75:1, II for one or more of the following classes of property, or for all such classes of property:

(a) Residential;

(b) Commercial;

(c) Industrial; or

(d) Utility.

II.(a) Within a class of property, and subject to criteria adopted by the current use board under RSA 79-A, the governing body may further designate different types, grades, or locations of taxable property.

(b) For any class of property appraised using assigned values under this section, the governing body shall apportion the amount of revenue from property taxation which shall be met by the class of property. Any such apportionment shall result in proportional taxation of properties in similar classifications based on the current use thereof, and shall comply with criteria adopted by the current use board.

III.(a) Any town or city may adopt the provisions of RSA 75:1, II and this section in the following manner:

(1) In a town, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3, and shall be voted upon by official ballot if that town has adopted the official ballot for the election of officers. A public hearing shall be held at least 15 but not more than 60 days prior to the vote.

(2) In a city or a town with a town council, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such city may vote to place the question on the official ballot for any regular municipal election.

(b) The vote shall specify the adoption of property taxation for classes of property based on assigned values for such classifications based on the current use thereof. The procedure shall take effect in the tax year beginning April 1 following its adoption.

IV. A town or city may modify or rescind the adoption of the procedure provided by this section in the manner described in paragraph III.

4 Oath; Reference Changed. Amend RSA 75:7 to read as follows:

75:7 Oath. The selectmen and assessors shall take and subscribe upon the copies or original inventories and assessments of both resident and nonresident taxes, furnished by them to the town clerks in their respective towns, to be recorded in the clerk's records, the following oath, which may be subscribed before any justice of the peace or notary public: We, the selectmen and assessors of , certify under the penalty of perjury that in making the inventory for the purpose of assessing the foregoing taxes all taxable property was appraised to the best of our knowledge and belief [at its full value,] in accordance with state law and appraisal standards.

5 Revised Inventory. Amend RSA 75:8, II to read as follows:

II. Assessors and selectmen shall [consider adjusting] adjust assessments as required by law for any properties that:

(a) They know or believe have had a material physical change;

(b) Changed in ownership;

(c) Have undergone zoning changes;

(d) Have undergone changes to exemptions, credits or abatements;

(e) Have undergone subdivision, boundary line adjustments, or mergers; [or]

(f) Have undergone other changes affecting value; or

(g) Have changed in class, type, or grade for purposes of assigned values based on the current use thereof.

6 Current Use; Definition Clarified. Amend RSA 79-A:2, IX to read as follows:

IX. "Open space land" means any or all farm land, forest land, or unproductive land as defined by this section. However, "open space land" shall not include any property held by a city, town or district in another city or town for the purpose of a water supply or flood control, for which a payment in place of taxes is made in accordance with RSA 72:11, or property assessed under an assigned value taxation method as permitted in RSA 75:1, II.

7 New Paragraph; Definition Added; Assigned Values Taxation. Amend RSA 79-A:2 by inserting after paragraph I the following new paragraph:

I-a. "Assigned values taxation" means the method of appraisal for property taxation described in RSA 75:1, II and RSA 75:1-a for residential, commercial, industrial, and utility property based on the current use thereof.

8 Current Use Board; Powers and Duties. Amend RSA 79-A:4, I to read as follows:

I. It shall meet at least annually, after July 1, to establish a schedule of criteria and current use values to be used for the succeeding year. It shall have the power to establish minimum acreage requirements of 10 acres or less for open space land. It shall also review all past current use values and criteria for open space land established by past boards. For open space land and for land subject to assigned values taxation, the board shall make such changes and improvements in the administration of this chapter as experience and public reaction may recommend.

9 New Section; Assessment of Property for Assigned Values Taxation. Amend RSA 79-A by inserting after section 5 the following new section:

79-A:5-a Assessment of Property for Assigned Values Taxation. Appraisals required pursuant RSA 75:1, II and RSA 75:1-a shall be made as follows:

I. The selectmen or assessing officials shall appraise the land, as classified under the provisions of this chapter and in criteria adopted in rules by the board, at valuations based upon the current use values established by the board. The valuations shall be equalized for the purpose of assessing taxes.

II. No owner of land shall be entitled to have a particular parcel of land reclassified by the governing body of a municipality for any tax year under a specific classification permitted by this chapter. An owner may apply to the assessing officials on or before April 15 of said year, on a form approved by the board and provided by the commissioner, to have his or her parcel of land so reclassified. If any owner shall satisfy the assessing officials that he or she was prevented by accident, mistake or misfortune from filing an application on or before April 15, the officials may receive the application at a later date and reclassify the parcel of land; but no such application shall be received after the rates for local assigned values taxation have been approved by the commissioner for that year.

III. The assessing officials shall notify the applicant on a form provided by the commissioner no later than July 1, or within 15 days if the application is filed after July 1, of their decision to classify or refusal to classify a parcel of land by delivery of such notification in person or by mailing such notification to his or her last and usual place of abode.

IV. Prior to July 1 each year, the assessing officials shall determine if previously classified lands have been reapplied or have undergone a change in use so that. A list of all classified lands and their owners in each town or city shall be filed by the respective assessing officials each year. Such list shall be part of the invoice and subject to inspection as provided in RSA 76:7.

V. The commissioner shall include on the inventory blank, required under RSA 74:4, a question concerning whether any changes have been made in the use of classified land. The question shall be written to enable the assessing officials to locate parcels which may require a change in assessment and to fit the context of the blank.

10 Computing Equalized Value; Reference to Open Space Added. Amend RSA 79-A:6-a to read as follows:

79-A:6-a Valuation for Computing Equalized Value. In computing the equalized value of a city or town, the department of revenue administration shall use the current use value for any open space land which is so appraised under this chapter.

11 Effective Date. This act shall take effect April 1, 2003