HB 338 – AS INTRODUCED
2005 SESSION
10/09
HOUSE BILL 338
AN ACT allowing municipalities to adopt a low income property tax credit.
SPONSORS: Rep. B. Richardson, Ches 5; Rep. Alger, Graf 6
COMMITTEE: Municipal and County Government
This bill enables towns and cities to adopt a low income property tax credit for a portion of property taxes on a person’s residence for persons meeting household income requirements.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0358
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT allowing municipalities to adopt a low income property tax credit.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Low Income Property Tax Credit. Amend RSA 72 by inserting after section 39-b the following new section:
72:39-c Low Income Property Tax Credit.
I. A town or city may adopt the low income property tax credit granted under this section by the procedure in RSA 72:27-a.
II. Each person owning residential property in the town or city as his or her principal place of residence, shall be granted a credit against the property taxes on the person’s residence to the extent that the person’s property taxes on the residence exceed the applicable percentage related to the residence’s annual household income, as determined in paragraph III. Only one tax credit may granted for each residence. No person with a household income over $47,000 shall receive the credit. The credit granted to a person shall not exceed $1,500 in any year.
III. If the person’s household income for the year is:
(a) Less than $5,000, the credit shall be the amount of property taxes which exceed 3.5 percent of household income.
(b) Between $5,000 and $9,999, the credit shall be the amount of property taxes which exceed 4 percent of household income.
(c) Between $10,000 and $24,999, the credit shall be the amount of property taxes which exceed 4.5 percent of household income.
(d) Between $25,000 and $47,000, the credit shall be the amount of property taxes which exceed 5 percent of household income.
IV. For purposes of this section:
(a) “Residence” means the housing unit, and related structures such as an unattached garage or woodshed, which is the person’s principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. “Residence” shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.
(b) “Household income” means the sum of the adjusted gross income for federal income tax purposes of the claimant and any adult member of the claimant's household who resides in the homestead for which a claim is made. “Household income” shall also include all income of any trust through which the claimant holds equitable title, or the beneficial interest for life, in the homestead.
V. Procedures for application, investigation of applications, and appeals shall be as provided in RSA 72:33, RSA 72:34, and RSA 72:34-a.
2 Low Income Property Tax Credit; Adoption Procedure; Reference Added. Amend the introductory paragraph of RSA 72:27-a, I to read as follows:
I. Any town or city may adopt the provisions of RSA 72:28, RSA 72:29-a, RSA 72:35, RSA 72:37, RSA 72:37-b, RSA 72:38-b, RSA 72:39-a, RSA 72:39-c, RSA 72:62, RSA 72:66, or RSA 72:70 in the following manner:
3 Definitions; Reference Added. Amend RSA 72:29, VI to read as follows:
VI. For purposes of RSA 72:28, 29-a, 30, 31, 32, 33, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-c, 62, 66, and 70, the ownership of real estate, as expressed by such words as “owner,” “owned” or “own,” shall include those who have equitable title or the beneficial interest for life in the subject property.
4 Property Taxation; Application Procedure; Reference Added. Amend the introductory paragraph of RSA 72:33, I to read as follows:
I. No person shall be entitled to the exemptions or tax credits provided by RSA 72:28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-b, 39-b, 39-c, 62, 66, and 70 unless the person has filed with the selectmen or assessors, by April 15 preceding the setting of the tax rate, a permanent application therefor, signed under penalty of perjury, on a form approved and provided by the commissioner of revenue administration, showing that the applicant is the true and lawful owner of the property on which the exemption or tax credit is claimed and that the applicant was duly qualified upon April 1 of the year in which the exemption or tax credit is first claimed, or, in the case of financial qualifications, that the applicant is duly qualified at the time of application. The form shall include the following and such other information deemed necessary by the commissioner:
5 Appeals; Reference Added. Amend RSA 72:34-a to read as follows:
72:34-a Appeal From Refusal to Grant Exemption, Deferral, or Tax Credit. Whenever the selectmen or assessors refuse to grant an applicant an exemption, deferral, or tax credit to which the applicant may be entitled under the provisions of RSA 72:23, 23-d, 23-e, 23-f, 23-g, 23-h, 23-i, 23-j, 23-k, 28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-b, 39-c, 41, 42, 62, 66, or 70 the applicant may appeal in writing, on or before September 1 following the date of notice of tax under RSA 72:1-d, to the board of tax and land appeals or the superior court, which may order an exemption, deferral, or tax credit, or an abatement if a tax has been assessed.
6 Interpretation by Commissioner of Revenue Administration. Amend RSA 72:36, I to read as follows:
I. The commissioner’s interpretation of RSA 72:28, RSA 72:29, RSA 72:29-a, RSA 72:30, RSA 72:31, RSA 72:32, RSA 72:33, RSA 72:33-a, RSA 72:34, RSA 72:34-a, RSA 72:35, [and] RSA 72:36-a, and RSA 72:39-c; and
7 Effective Date. This act shall take effect April 1, 2005.