HB1236: relative to municipal use of impact fees.

HB 1236-FN-LOCAL - AS INTRODUCED

2003 SESSION

03-2063

06/10

HOUSE BILL 1236-FN-LOCAL

AN ACT relative to municipal use of impact fees.

SPONSORS: Rep. Bruno, Hills 45

COMMITTEE: Municipal and County Government

ANALYSIS

This bill repeals certain requirements relative to the accounting for and use of impact fees.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-2063

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to municipal use of impact fees.

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

1 Repeal. The following are repealed:

I. RSA 674:21, V(c), relative to restrictions on accounting for and expending impact fees.

II. RSA 674:21, V(e), relative to time limits on the expenditure of impact fees.

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

LBAO

03-2063

7/25/03

HB 1236-FN-LOCAL - FISCAL NOTE

AN ACT relative to municipal use of impact fees.

FISCAL IMPACT:

The New Hampshire Municipal Association and Department of Revenue Administration state this bill will decrease local expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or state and county expenditures.

METHODOLOGY:

The New Hampshire Municipal Association states this bill would repeal the accounting requirements for impact fees collected by municipalities, as well as repeal the time limitations on the use of impact fees collected. Since this legislation would reduce the administrative burden associated with municipal impact fee ordinances, it would likely reduce the costs associated with administering such ordinances. The exact reduction in costs is indeterminable at this time since it would depend on the number of communities that have enacted or will hereafter enact impact fee ordinances, the amount of development in those communities, and the amount of impact fees assessed and collected.

The Department of Revenue Administration states this bill would require local impact fees to be deposited into the general fund of the municipality and requires that funds be appropriated in order to be spent. This would contribute to greater accountability of revenues and expenditures. Repeal of RSA 674:21, V (e) would remove the requirement to refund and calculate interest on unused amounts after six years. The Department is unable to determine the local impact, if any, other than more local control by voters on amounts expended. The Department can administer this bill under their current budget.