HB1631: relative to taxation of certain hydro-electric generation facilities.

HB 1631-FN-LOCAL - AS INTRODUCED

2020 SESSION

20-2267

05/04

HOUSE BILL 1631-FN-LOCAL

AN ACT relative to taxation of certain hydro-electric generation facilities.

SPONSORS: Rep. Abbott, Ches. 1; Rep. Berch, Ches. 1; Rep. Harvey, Ches. 1; Rep. Berrien, Rock. 18

COMMITTEE: Municipal and County Government

ANALYSIS

This bill provides that funds collected from hydro-electric generation facilities pursuant to the utility tax in RSA 83-F shall be distributed to the municipalities where the facility is located or otherwise subject to taxation for the purpose of funding education in such municipalities.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2267

05/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT relative to taxation of certain hydro-electric generation facilities.

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

1 Utility Property Tax; Administration; Deposit of Funds from Hydro-Electric Regeneration Facilities. Amend RSA 83-F:7, I to read as follows:

I. Except as otherwise provided in paragraph I-a, the commissioner shall collect the taxes, interest, additions to tax and penalties imposed under this chapter and shall pay over to the state treasurer for deposit in the education trust fund established by RSA 198:39 the amount of the funds collected.

I-a. Funds collected under this chapter from a hydro-electric regeneration facility shall be distributed directly to the municipality in which the facility is located or otherwise subject to taxation under RSA 76, for the purpose of funding education costs in such municipalities. The funds shall be divided equally among the municipalities, except that a municipality shall not receive a distribution under this paragraph if the municipality is not eligible for a stabilization grant under RSA 198:41 because the amount of statewide education property tax revenue raised by the municipality is greater than its cost of an adequate education. In such case, the relevant portion of the funds collected shall be deposited in the education trust fund pursuant to paragraph I.

2 Effective Date. This act shall take effect July 1, 2020.

LBAO

20-2267

12/9/19

HB 1631-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

AN ACT relative to taxation of certain hydro-electric generation facilities.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

LOCAL:

Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill provides that funds collected from hydro-electric generation facilities pursuant to the Utility Property Tax in RSA 83-F shall be distributed to the municipalities where the facility is located or otherwise subject to taxation for the purpose of funding education in such municipalities.

There is no applicability date specified in the bill, but based on the effective date of the bill the Department of Revenue Administration assumes the bill would apply to funds collected on or after July 1, 2020. The Department does not know the amount of Utility Property Tax (UPT) that will be assessed on hydro-electric generation facilities for FY 2021 or future years, or the amount of interest, penalties and taxes that will be collected. For the taxable period which began on April 1, 2018 , the Department assessed about $5 million of UPT on such facilities. The Department indicates the bill would decrease State revenue to the Education Trust Fund and increase local revenue to certain municipalities by an indeterminable amount.

The Department of Education has no information of hydro-electric generation facilities or the potential tax revenue raised. Under the bill communities not eligible for a stabilization grant under RSA 198:41 would not be eligible for the proposed distribution of the UPT revenue. The Department provided the following list of communities which are not eligible for a stabilization grant:

Alton, Bartlett, Bridgewater, Cambridge, Carroll, Center Harbor, Dix's Grant, Dixville, Easton, Eaton, Errol, Franconia, Freedom, Groton, Hale's Location, Hampton, Hanover, Harrisville, Hart's Location, Hebron, Holderness, Jackson, Lincoln, Martin's Location, Meredith, Millsfield, Moultonborough, Newbury, New Castle, Newington, New London, North Hampton, Odell, Pinkham's Grant, Pittsburg, Portsmouth, Randolph, Rye, Sandwich, Success, Sunapee, Tuftonboro, Waterville Valley, Wentworth's Location and Wolfeboro.

AGENCIES CONTACTED:

Departments of Revenue Administration and Education