HB479: relative to eligibility for the low and moderate income homeowners property tax relief.

HB 479-FN - AS INTRODUCED

2019 SESSION

19-0697

10/05

HOUSE BILL 479-FN

AN ACT relative to eligibility for the low and moderate income homeowners property tax relief.

SPONSORS: Rep. Fellows, Graf. 8; Rep. Gordon, Graf. 9; Rep. Ames, Ches. 9; Rep. Ellison, Merr. 27; Rep. Weston, Graf. 8

COMMITTEE: Municipal and County Government

ANALYSIS

This bill increases the income and property value criteria for claimants of the low and moderate income homeowners property tax relief against statewide education property taxes.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0697

10/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to eligibility for the low and moderate income homeowners property tax relief.

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

1 Low and Moderate Income Homeowners Property Tax Relief; Statewide Education Property Tax; Income and Property Criteria. Amend RSA 198:57, III and IV to read as follows:

III. An eligible tax relief claimant is a person who:

(a) Owns a homestead or interest in a homestead subject to the education tax;

(b) Resided in such homestead on April 1 of the year for which the claim is made, except such persons as are on active duty in the United States armed forces or are temporarily away from such homestead but maintain the homestead as a primary domicile; and

(c) Realizes total household income of:

(1) [$20,000] $35,000 or less if a single person;

(2) [$40,000] $45,000 or less if a married person or head of a New Hampshire household.

IV. All or a portion of an eligible tax relief claimant's state education property taxes, RSA 76:3, shall be rebated as follows:

(a) Multiply the total local assessed value of the claimant's property by the percentage of such property that qualifies as the claimant's homestead;

(b) Multiply [$100,000] $170,000 by the most current local equalization ratio as determined by the department of revenue administration;

(c) Multiply the lesser of the amount determined in subparagraph (a) or (b) by the education tax rate as shown on the tax bill under RSA 76:11-a;

(d) Multiply the product of the calculation in subparagraph (c) by the following percentage as applicable to determine the amount of tax relief available to the claimant:

(1) If a single person and total household income is:

(A) less than [$12,500] $21,900, 100 percent;

(B) [$12,500] $21,900 but less than [$15,000] $26,300, 60 percent;

(C) [$15,000] $26,300 but less than [$17,500] 30,600, 40 percent; or

(D) [$17,500] $30,600 but less than or equal to [$20,000] $35,000, 20 percent.

(2) If a head of a New Hampshire household or a married person and total household income is:

(A) less than [$25,000] $28,100, 100 percent;

(B) [$25,000] $28,100 but less than [$30,000] $33,800, 60 percent;

(C) [$30,000] $33,800 but less than [$35,000] $39,400, 40 percent; or

(D) [$35,000] $39,400 but less than or equal to [$40,000] $45,000, 20 percent.

(e) The amount determined by subparagraph (d) is the allowable tax relief in any year.

2 Application. RSA 198:57 as amended by section 1 of this act shall apply to statewide education property taxes assessed on and after April 1, 2019.

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

LBAO

19-0697

1/7/19

HB 479-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to eligibility for the low and moderate income homeowners property tax relief.

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

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

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

METHODOLOGY:

This bill makes the following modifications to the Low and Moderate Income Homeowner Property Tax Relief program:

1) increases the household income amounts for both single and married persons eligible for the program;

2) increases the claimant's minimum homestead amount multiplied by the applicable local equalization ratio from $100,000 to $170,000; and

3) increases the single person and total household income amounts used to determine the percentage of the tax relief rebate to be made available to the claimant.

The Department of Revenue Administration is unable to determine the impact this bill will have on State expenditures due to not possessing all the necessary information. The Department anticipates the increase in the income thresholds will result in more claimants seeking tax relief under this bill. Therefore, an increase in rebates being paid from the education trust fund will occur by an indeterminable amount.

AGENCIES CONTACTED:

Department of Revenue Administration