SB324: (New Title) relative to the real estate transfer tax, the calculation of the commissioner’s warrant for the statewide enhanced education tax, and to defining Penacook as a municipality.

CHAPTER 195

SB 324-FN-A-LOCAL – FINAL VERSION

22Apr2004… 1208h

5May2004… 1412h

2004 SESSION

04-3019

09/10

SENATE BILL 324-FN-A-LOCAL

AN ACT relative to the real estate transfer tax, the calculation of the commissioner’s warrant for the statewide enhanced education tax, and to defining Penacook as a municipality.

SPONSORS: Sen. Clegg, Dist 14; Rep. Packard, Rock 75; Rep. Carson, Rock 75; Rep. Introne, Rock 75; Rep. Headd, Rock 75; Rep. McKinney, Rock 75

COMMITTEE: Ways and Means

AMENDED ANALYSIS

This bill:

I. Amends the method of calculating utility property in determining a municipality’s tax base for the purpose of the statewide enhanced education tax.

II. Changes criteria for taxability of transfers of manufactured housing under the real estate transfer tax.

III. Defines the Penacook section of Concord to be a municipality for purposes of calculation of the commissioner’s warrant for the statewide enhanced education tax.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22Apr2004… 1208h

5May2004… 1412h

04-3019

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to the real estate transfer tax, the calculation of the commissioner’s warrant for the statewide enhanced education tax, and to defining Penacook as a municipality.

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

195:1 Statewide Enhanced Education Tax; Commissioner’s Warrant. RSA 76:8, I is repealed and reenacted to read as follows:

I. (a) The commissioner shall annually determine a municipality’s tax base for the statewide enhanced education tax by subtracting from the total equalized valuation of all property, as determined under RSA 21-J:3, XIII for the preceding year, property that was then taxable under RSA 82 and RSA 83-F. In determining the tax base, the value of any utility property that was not taxable under RSA 83-F in the preceding year but is taxable under RSA 83-F in the current year shall also be subtracted, provided the sum value represents at least 5 percent of the total equalized value of all property, except property taxable under RSA 82 or RSA 83-F in the preceding year.

(b) The commissioner shall calculate the portion of the statewide enhanced education tax to be raised by each municipality by multiplying the uniform education property tax rate by the municipality’s tax base.

195:2 Statewide Enhanced Education Tax; Version Effective July 1, 2004. Amend RSA 76:3 to read as follows:

76:3 Statewide Enhanced Education Tax. An annual statewide enhanced education tax at the uniform rate of $3.24 on each $1,000 of the value of taxable property, except property subject to tax under RSA 82 and RSA 83-F, is hereby imposed on all persons and property taxable pursuant to [RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F] RSA 76:8.

195:3 Statewide Enhanced Education Tax; Version Effective July 1, 2005. Amend RSA 76:3 to read as follows:

76:3 Statewide Enhanced Education Tax. Beginning July 1, 2005, and every fiscal year thereafter, the uniform statewide enhanced education tax rate shall be set at a rate which shall raise $363,677,547 based on [the most recent available state equalized valuation, and such rate shall be imposed on all] persons and property taxable pursuant to [RSA 72 and RSA 73,] RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The commissioner of the department of revenue administration shall set the rate which shall be effective for the fiscal year in which the calculation is made.

195:4 Real Estate Transfer Tax; Manufactured Housing. Amend the introductory paragraph of RSA 78-B:4, IV to read as follows:

IV. Notwithstanding any other provision of this chapter to the contrary, the following subparagraphs shall govern payment of transfer taxes where the real estate consists of manufactured housing, as defined by RSA 674:31:

195:5 Penacook Defined As Municipality; Commissioner’s Warrant; Statewide Enhanced Education Tax. The term “municipality” as used in RSA 76:8, I shall be defined to include the Penacook section of the city of Concord.

195:6 Effective Date.

I. Sections 1 and 2 of this act shall take effect July 1, 2004 at 12:01 a.m. and shall apply to all tax years beginning on or after April 1, 2004.

II. Section 3 of this act shall take effect July 1, 2005 at 12:01 a.m.

III. The remainder of this act shall take effect July 1, 2004.

(Approved: June 7, 2004)

(Effective Date: I. Sections 1 and 2 shall take effect July 1, 2004 at 12:01 a.m. and shall apply to all tax years beginning on or after April 1, 2004.

II. Section 3 shall take effect July 1, 2005 at 12:01 a.m.

III. Remainder shall take effect July 1, 2004.)