HB1189: increasing the property tax credit for service-connected total disability.

HB 1189-FN-LOCAL - AS INTRODUCED

2003 SESSION

03-2159

10/09

HOUSE BILL 1189-FN-LOCAL

AN ACT increasing the property tax credit for service-connected total disability.

SPONSORS: Rep. Buckley, Hills 56; Rep. Easson, Straf 68

COMMITTEE: Municipal and County Government

ANALYSIS

This bill increases both the tax credit and the optional tax credit for veterans who have service-connected total disability.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-2159

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT increasing the property tax credit for service-connected total disability.

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

1 Tax Credit for Service-Connected Total Disability; Amount Increased. Amend RSA 72:35, I to read as follows:

I. 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 [$700] $2,400 of property taxes on the person's residential property.

2 Optional Tax Credit for Service-Connected Total Disability; Amount Increased. 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, 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] $4,800 of property taxes on the person's residential property.

3 Procedure for Adoption. Amend RSA 72:35-a, I(c) to read as follows:

(c) The wording of the question shall be: "Shall we adopt the provisions of RSA 72:35, IV for an optional tax credit on the taxes due on residential property for a service-connected total disability? The optional disability tax credit is [$1,400] $4,800, rather than [$700] $2,400."

4 Effective Date. This act shall take effect April 1, 2004.

LBAO

03-2159

6/25/03

HB 1189-FN-LOCAL - FISCAL NOTE

AN ACT increasing the property tax credit for service-connected total disability.

FISCAL IMPACT:

The Department of Revenue Administration states this bill will have no fiscal impact on state, county, and local revenue or expenditures.

METHODOLOGY:

The Department states this bill increases the Veteran's tax credit for service-connected total disability from $700 to $2,400, and from $1,400 to $4,800. Veteran's credits worth $700 each were given to 212 people and credits worth $1,400 were given to 1,496 people in 2002. Assuming the number of credits granted in 2002 will be the same for fiscal year 2005, the Department estimates the tax credit will amount to $7,689,600 under this legislation, as compared to $2,242,800 under the current law, resulting in a difference of $5,446,800. The tax credit is subject to local approval. This bill will shift the burden among local taxpayers, resulting in no net impact on local revenue or expenditures. The Department states they can administer this bill within their existing budget.