HB424: (New Title) relative to a net asset qualification for the elderly property tax exemption, and clarifying certain references in property tax exemptions.

HB 424 - AS AMENDED BY THE HOUSE

25mar03... 0826h

2003 SESSION

03-0532

10/09

HOUSE BILL 424

AN ACT relative to a net asset qualification for the elderly property tax exemption, and clarifying certain references in property tax exemptions.

SPONSORS: Rep. Akins, Graf 18; Rep. Dudley, Graf 18; Rep. Langone, Rock 77; Sen. Gallus, Dist 1; Sen. Martel, Dist 18

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill:

I. Allows for the adoption by municipalities of a married persons' net asset qualification for purposes of the elderly exemption. Such combined net asset qualification shall apply to a surviving spouse until the sale or transfer of the property, or until the remarriage of the surviving spouse.

II. Clarifies references to consecutive years of residence and married persons in certain property tax exemption statutes.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

25mar03... 0826h

03-0532

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to a net asset qualification for the elderly property tax exemption, and clarifying certain references in property tax exemptions.

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

1 Property Taxation; Conditions for Elderly Exemption; Consecutive Years of Residence. Amend RSA 72:39-a, I(a) to read as follows:

(a) Has resided in this state for at least 5 consecutive years preceding April 1 in the year in which the exemption is claimed.

2 Property Taxation; Conditions for Elderly Exemption; Net Assets for Married Persons. Amend RSA 72:39-a, I(c) to read as follows:

(c) Owns 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. 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.

3 New Paragraph; Exemption for Surviving Spouse; Combined Net Asset Amount. Amend RSA 72:39-a by inserting after paragraph II the following new paragraph:

III. Upon the death of an owner residing with a spouse pursuant to subparagraph II(b) or II(d), the combined net asset amount for married persons determined by the city or town shall continue to apply to the surviving spouse for the purpose of the exemption granted under RSA 72:39-b until the sale or transfer of the property by the surviving spouse or until the remarriage of the surviving spouse.

4 Property Taxation; Adoption or Modification of Elderly Exemption; Net Assets for Married Persons. Amend RSA 72:39-b, I(c) to read as follows:

(c) The wording of the question shall be: "Shall we modify the elderly exemptions from property tax in the town (city) of , based on assessed value, for qualified taxpayers, to be as follows: for a person 65 years of age up to 75 years, (here insert dollar amount); for a person 75 years of age up to 80 years, (here insert dollar amount); for a person 80 years of age or older (here insert dollar amount). To qualify, the person must have been a New Hampshire resident for at least 5 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 of not more than (here insert a dollar amount not less than $13,400) or, if married, a combined net income of less than (here insert a dollar amount not less than $20,400); and own net assets not in excess of (here insert a dollar amount not less than $35,000 excluding the value of the person's residence) or, if married, combined net assets not in excess of (here insert a dollar amount of $35,000 or greater) excluding the value of the residence." Under no circumstances shall the amounts of the exemption for any age category be less than $5,000. 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.

5 Exemption for the Disabled; Qualifications Clarified. Amend RSA 72:37-c, I(c) to read as follows:

(c) The wording of the question shall be: "Shall we adopt an exemption for the disabled? The exemption, based on assessed value, for qualified taxpayers shall be (here insert dollar amount). To qualify, the person must have been a New Hampshire resident for at least 5 consecutive years and own and occupy the real estate individually or jointly, or if the real estate is owned by a spouse, they must have been married to each other for at least 5 consecutive years. In addition, the taxpayer must have a net income of not more than (here insert dollar amount) or, if married, a combined net income of not more than (here insert dollar amount); and own net assets not in excess of (here insert dollar amount) excluding the value of the person's residence."

6 Tax Deferral for the Elderly and Disabled; Qualifications Clarified. Amend RSA 72:38-a, I(b) to read as follows:

(b) Has owned the homestead for at least 5 consecutive years; and

7 Effective Date. This act shall take effect 60 days after its passage.