HB466: relative to the adoption procedure for property tax exemptions and credits.

HB 466 - AS AMENDED BY THE HOUSE

25mar03... 0737h

2003 SESSION

03-0740

10/01

HOUSE BILL 466

AN ACT relative to the adoption procedure for property tax exemptions and credits.

SPONSORS: Rep. Patten, Carr 7

COMMITTEE: Municipal and County Government

ANALYSIS

This bill clarifies the procedure for adopting or modifying property tax exemption or credits in RSA 72 and repeals various existing provisions which are obsolete or duplicative.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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... 0737h

03-0740

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the adoption procedure for property tax exemptions and credits.

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

1 New Section; Procedure for Adoption, Modification, or Recission. Amend RSA 72 by inserting after section 27 the following new section:

72:27-a Procedure for Adoption, Modification, or Recission.

I. Any town or city may adopt the provisions of RSA 72:28, RSA 72:29-a, RSA 72:35, RSA 72:37, RSA 72:37-b, RSA 72:39-a, RSA 72:62, RSA 72:66, or RSA 72:70 in the following manner:

(a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, 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.

(b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, 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 municipality may vote to place the question on the official ballot for any regular municipal election.

II. The vote shall specify the provisions of the property tax exemption or credit, the amount or such exemption or credit, and the manner of its determination, as listed in paragraph I. The exemption or credit shall take effect in the tax year beginning April 1 following its adoption.

III. A municipality may modify, if applicable, or rescind the exemption or credits provided in paragraph I in the manner described in this section.

2 Veterans' Credit; Reference Changed. Amend RSA 72:28, V and the introductory paragraph of 72:28, VI to read as follows:

V. Upon its adoption by a city or town as provided in RSA [72:28-a] 72:27-a, the veterans' tax credit shall be $100 subtracted each year from the property tax on the veteran's residential property. However, the surviving spouse of a resident who suffered a service-connected death may have the sum subtracted from the property tax on any real property in the same municipality where the surviving spouse is a resident.

VI. Upon adoption by a city or town as provided in RSA [72:28-a] 72:27-a, service in a qualifying war or armed conflict shall be as follows:

3 Veterans' Credit; Surviving Spouse; Reference Changed. Amend RSA 72:29-a, II to read as follows:

II. Upon the adoption of this paragraph by a city or town as provided in RSA [72:29-b] 72:27-a, the surviving spouse of any person who was killed or died while on active duty in the armed forces of the United States or any of the armed forces of any of the governments associated with the United States in the wars, conflicts or armed conflicts, or combat zones set forth in RSA 72:28, shall receive a tax credit in the amount of $1,400 for the taxes due upon the surviving spouse's real and personal property, whether residential or not, in the same municipality where the surviving spouse is a resident.

4 Tax Credit for Service Connected Disability; Reference Changed. Amend RSA 72:35, IV(a) to read as follows:

IV.(a) Upon its adoption by a city or town as provided in RSA [72:35-a] 72:27-a, any person who has been honorably discharged or an officer honorably separated from the military service of the United States and who has total and permanent service-connected disability, or who is a double amputee or paraplegic because of service-connected injury, or the surviving spouse of such a person, shall receive a yearly tax credit in the amount of $1,400 of property taxes on the person's residential property.

5 Interpretation; Rules. Amend RSA 72:36, I to read as follows:

I. [His] The commissioner's interpretation of RSA 72:28, [72:28-a], 72:29, 72:29-a, [72:29-b], 72:30, 72:31, 72:32, 72:33, 72:33-a, 72:34, 72:34-a, 72:35, 72:35-a and 72:36-a; and

6 Exemption for the Blind; Reference Changed. Amend RSA 72:37 to read as follows:

72:37 Exemption for the Blind. Every inhabitant who is legally blind as determined by the blind services program, bureau of vocational rehabilitation, department of education shall be exempt each year on the assessed value, for property tax purposes, of his or her residential real estate to the value of $15,000, and a city or town may exempt any amount it may determine is appropriate to address significant increases in property values in accordance with the procedures in RSA [72:36-b] 72:27-a. The term "residential real estate" as used in this section shall mean the same as defined in RSA 72:29. All applications made under this section shall be subject to the provisions of RSA 72:33 and RSA 72:34.

7 Exemption for the Disabled; Reference Changed. Amend RSA 72:37-b, I to read as follows:

I. Upon its adoption by a city or town as provided in RSA [72:37-c] 72:27-a, any person who is eligible under Title II or Title XVI of the federal Social Security Act for benefits to the disabled shall receive a yearly exemption in an amount to be chosen by the town or city.

8 Procedure for Adoption and Modification of the Elderly Exemption. RSA 72:39-b is repealed and reenacted to read as follows:

72:39-b Procedure for Adoption and Modification of Elderly Exemption.

I. A town or city may adopt or modify elderly exemptions by the procedure in RSA 72:27-a.

II. An elderly exemption, based on assessed value for qualified taxpayers, shall 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 5 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 for at least 5 years. In addition, the taxpayer must have a net income of not more than a dollar amount a dollar amount determined by the town or city of not less than $13,400 or, if married, a combined net income of less than a dollar amount 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 a dollar amount determined by the town or city of not less than $35,000 excluding the value of the person's residence. Under no circumstances shall the amounts of the exemption for any age category be less than $5,000.

9 Exemption for the Solar Energy Systems; Reference Changed. Amend RSA 72:62 to read as follows:

72:62 Exemption for Solar Energy Systems. Each city and town may adopt under RSA [72:63] 72:27-a an exemption from the assessed value, for property tax purposes, for persons owning real property which is equipped with a solar energy system as defined in RSA 72:61.

10 Exemption for the Wind-Powered Energy Systems; Reference Changed. Amend RSA 72:66 to read as follows:

72:66 Exemption for Wind-Powered Energy Systems. Each city and town may adopt under RSA [72:67] 72:27-a an exemption from the assessed value, for property tax purposes, for persons owning real property which is equipped with a wind-powered energy system.

11 Exemption for the Woodheating Energy Systems; Reference Changed. Amend RSA 72:70 to read as follows:

72:70 Exemption for Woodheating Energy Systems. Each city and town may adopt under RSA [72:71] 72:27-a an exemption from the assessed value, for property tax purposes, for persons owning real property which is equipped with a woodheating energy system

12 Application. The provisions of this act shall not affect any validly adopted or modified property tax credit or exemption by any town or city in effect before the effective date of this act.

13 Repeal. The following are repealed:

I. RSA 72:28-a, relative to adoption of the optional veterans' credit.

II. RSA 72:29-b, relative to adoption of the veterans' surviving spouse credit.

III. RSA 72:35-a, relative to adoption of the credit for service connected disability.

IV. RSA 72:36-b, relative to adoption of the exemption for the blind.

V. RSA 72:37-c, relative to adoption of the exemption for the disabled.

VI. RSA 72:63, relative to adoption of the exemption for solar energy systems.

VII. RSA 72:67, relative to adoption of the exemption for wind-powered energy systems.

VIII. RSA 72:71, relative to adoption of the exemption for woodheating energy systems. 14 Effective Date. This act shall take effect 60 days after its passage.