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RSA 72:74 · Payment in Lieu of Taxes

Title
V: TAXATION
Chapter
72 · PERSONS AND PROPERTY LIABLE TO TAXATION
Status
current
Official source linked
Yes
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72:74 Payment in Lieu of Taxes. –

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I.

The owner of a renewable generation facility and the governing body of the municipality in which the facility is located may, after a duly noticed public hearing, enter into a voluntary agreement to make a payment in lieu of taxes. A lessee of a renewable generation facility which is responsible for the payment of taxes on the facility may also enter into a voluntary agreement with the municipality in which the facility is located to make a payment in lieu of taxes, provided the lessee shall send by certified mail to the lessor written notice which shall state that the property of the lessor may be subject to RSA 80 should the lessee fail to make the payments required by the agreement. A copy of such notice shall be provided to the municipality in which the facility is located.

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II.

A renewable generation facility subject to a voluntary agreement to make a payment in lieu of taxes under this section shall be subject to the laws governing the utility property tax under RSA 83-F. Payments made pursuant to such agreement shall satisfy any tax liability relative to the renewable generation facility that otherwise exists under RSA 72. The payment in lieu of taxes shall be equalized under RSA 21-J:3, XIII in the same manner as other payments in lieu of taxes, but shall be excluded from the tax base used to determine the statewide education property tax in accordance with RSA 76:8, I(a). In the absence of a payment in lieu of taxes agreement, the renewable generation facility shall be subject to taxation under RSA 72.

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III.

If a municipality that contains more than one school district receives a payment in lieu of taxes under this section, the proceeds shall be prorated to the districts in the same manner as local taxes are prorated to the districts, or in the case of a cooperative school district between the city or town and pre-existing school district.

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IV.

The collection procedures in RSA 80 shall be used to enforce a voluntary agreement to make a payment in lieu of taxes authorized by this section.

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V.

If a municipality enters into a voluntary payment in lieu of taxes agreement with an owner, or a lessee responsible for payment of taxes, of a renewable generation facility, the municipality, upon the request of the owner, or a lessee responsible for payment of taxes, of any other renewable generation facility located within the municipality, shall offer a comparable agreement to the owner or lessee of such facility.

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VI.

Except as provided in paragraph VII, no voluntary agreement entered into under this section shall be valid for more than 5 years; however, any such agreement may be renewed or amended and restated for any number of consecutive periods of 5 years or less.

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VII.

The owner of a renewable generation facility and the governing body of the municipality in which the facility is located may agree to a term exceeding 5 years if such term is necessary for the financing of the project or is otherwise advantageous to both parties and both parties agree to such term. [Paragraph VIII effective July 1, 2027.]

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VIII.

In the case of an electric generating facility that is exempt from the utility property tax pursuant to RSA 83-F:1, V(g) and making payments in lieu of taxes to a municipality pursuant to RSA 72:74, if the payment in lieu of tax agreement was in effect as of July 1, 2027, then the facility shall not be liable for payment of the state education tax under RSA 76:3 until that payment in lieu of taxes agreement expires or until July 1, 2032, whichever occurs first. Once payment of the state education tax under RSA 76:3 is required, it may be included in a payment in lieu of taxes agreement pursuant to a new agreement reached under RSA 72:74, or be paid in addition to a payment in lieu of taxes agreement if the underlying agreement has not expired or been reopened and renegotiated. If, under RSA 76:3, the state education tax is paid separately from the payment in lieu of taxes, then the amount of the state education tax owed by the facility shall be determined by using the imputed value of the facility that is calculated and used by the department of revenue administration for purposes of equalization under RSA 21-J:3, XIII. Source. 2006, 294:6. 2007, 113:1, eff. Aug. 10, 2007. 2014, 277:2, eff. July 28, 2014. 2021, 31:1, eff. July 1, 2021. 2025, 206:1, eff. July 1, 2027. Payment in Lieu of Taxes for Combined Heat and Power Agricultural Facilities

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Source note

Source. 2006, 294:6. 2007, 113:1, eff. Aug. 10, 2007. 2014, 277:2, eff. July 28, 2014. 2021, 31:1, eff. July 1, 2021. 2025, 206:1, eff. July 1, 2027. Payment in Lieu of Taxes for Combined Heat and Power Agricultural Facilities

Source history

  • 2006, 294:6
  • 2007, 113:1, eff. Aug. 10, 2007
  • 2014, 277:2, eff. July 28, 2014
  • 2021, 31:1, eff. July 1, 2021
  • 2025, 206:1, eff. July 1, 2027. Payment in Lieu of Taxes for Combined Heat and Power Agricultural Facilities

Related materials

Bill relationships

  • 2026 HB1002 reference · effective 2027-04-01

    ities, and unincorporated places receive taxes or payments in lieu of taxes, including renewable generation facility property subject to a payment in lieu of taxes agreement under RSA 72:74 and combined heat and power agricultural facility property subject to a payment in lieu of taxes agreement under RSA 72:74-a, as may be equitable and just, so that any public taxes that may be apportioned among them sha

  • 2026 HB1002 reference · effective 2027-04-01

    ty subject to a payment in lieu of taxes agreement under RSA 72:74 and combined heat and power agricultural facility property subject to a payment in lieu of taxes agreement under RSA 72:74-a, as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the proce

  • 2026 HB1417 reference · effective 2027-01-01

    old income. Deferred taxes shall constitute a lien as provided by RSA 80. IV. Nothing in this section shall limit the use of existing deferral and abatement authorities under RSA 72 and RSA 76. 76:29 Appeals. I. Taxpayers may appeal land value and improvement value assessments as provided in RSA 75 and RSA 76:16-a, and to the BTLA under RSA 71-B. II. For LVT municipalities, assessment a

  • 2026 HB1417-FN reference · effective 2027-01-01

    old income. Deferred taxes shall constitute a lien as provided by RSA 80. IV. Nothing in this section shall limit the use of existing deferral and abatement authorities under RSA 72 and RSA 76. 76:29 Appeals. I. Taxpayers may appeal land value and improvement value assessments as provided in RSA 75 and RSA 76:16-a, and to the BTLA under RSA 71-B. II. For LVT municipalities, assessment a

  • 2026 HB1580 amend · effective 2027-04-01

    nces. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 New Section; Taxation; Property Taxes; Non-Primary Residence Surcharge. Amend RSA 72 by inserting after section 6-a the following new section: 72:6-b Non-Primary Residence Surcharge. I. As used in this section: (a) “Non-primary residence” means any residential property, including single-family

  • 2026 HB1580-FN-L amend · effective 2027-04-01

    nces. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 New Section; Taxation; Property Taxes; Non-Primary Residence Surcharge. Amend RSA 72 by inserting after section 6-a the following new section: 72:6-b Non-Primary Residence Surcharge. I. As used in this section: (a) “Non-primary residence” means any residential property, including single-family

  • 2026 HB1648 amend · effective 2027-01-01

    qualifying residences. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 New Subdivision; Owner-Occupied Residence Tax Relief. Amend RSA 72 by inserting after section 87 the following new subdivision: Owner-Occupied Residence Tax Relief 72:88 Purpose. The purpose of this subdivision is to provide a property tax exemption of up to $300,000 for owner-oc

  • 2026 HB1659 reference · effective 2027-04-01

    ities, and unincorporated places receive taxes or payments in lieu of taxes, including renewable generation facility property subject to a payment in lieu of taxes agreement under RSA 72:74 and combined heat and power agricultural facility property subject to a payment in lieu of taxes agreement under RSA 72:74-a, as may be equitable and just, so that any public taxes that may be apportioned among them sha

  • 2026 HB1659 reference · effective 2027-04-01

    ty subject to a payment in lieu of taxes agreement under RSA 72:74 and combined heat and power agricultural facility property subject to a payment in lieu of taxes agreement under RSA 72:74-a, as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the proc

  • 2026 HB1659 amend · effective 2027-04-01

    -a, 72:37-b, 72:38-a, 72:38-b, 72:39-a, 72:39-b, 72:39-c, 72:41, 72:62, 72:66, 72:70; 72:85, and 72:87; and 5 New Section; Disabled Veteran Homestead Property Tax Credit. Amend RSA 72 by inserting after section 39-b the following new section: 72:39-c Disabled Veteran Homestead Property Tax Credit. I. Any city or town may adopt the homestead property tax credit established under this section by

  • 2026 HB1674 amend · effective 2027-04-01

    ed the amount provided in RSA 72:37, 72:37-b, 72:38-b, [or] 72:39-b, or 72:60-b. 5 New Sections; Taxation; Persons and Property Liable to Taxation; Homestead Exemption. Amend RSA 72 by inserting after section 60 the following new sections: 72:60-a Conditions for Homestead Exemption. I. No exemption shall be allowed under RSA 72:60-b unless the person applying therefor: (a) Has resided a

  • 2026 HB1674 reference · effective 2027-04-01

    ty subject to a payment in lieu of taxes agreement under RSA 72:74 and combined heat and power agricultural facility property subject to a payment in lieu of taxes agreement under RSA 72:74-a, as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the proce

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