HB439: allowing municipalities the option to tax land values at a different rate than buildings and improvements.

HB 439 - AS INTRODUCED

2003 SESSION

03-0606

10/09

HOUSE BILL 439

AN ACT allowing municipalities the option to tax land values at a different rate than buildings and improvements.

SPONSORS: Rep. Noyes, Rock 76; Rep. Weyler, Rock 79; Rep. G. Katsakiores, Rock 77

COMMITTEE: Municipal and County Government

ANALYSIS

This bill allows towns and cities to tax the value of buildings and improvements at a lower property tax rate than the value of land.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0606

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT allowing municipalities the option to tax land values at a different rate than buildings and improvements.

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

1 New Section; Property Taxation; Local Option; Land and Buildings. Amend RSA 72 by inserting after section 6-a the following new section:

72:6-b Optional Land and Buildings Value Rate Procedure.

I. The power of a town or city to tax real property under this chapter may be performed at differing rates for the value of the land and for the value of the building and improvements thereon. A town or city may adopt a percentage decrease in the applicable rate that would be assessed on values of buildings and improvements. The department of revenue administration shall calculate the appropriate tax rates for land values and for building and improvements pursuant to RSA 21-J:35, incorporating the percentage difference in the rates.

II.(a) Any town or city may adopt the provisions of paragraph I 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 or town may vote to place the question on the official ballot for any regular municipal election.

(b) The vote shall specify the adoption of the land and buildings value property tax rate procedure provided in paragraph I. The procedure shall take effect in the tax year beginning April 1 following its adoption.

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

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