HB 666-FN-LOCAL – AS INTRODUCED
2005 SESSION
08/09
HOUSE BILL 666-FN-LOCAL
AN ACT prohibiting taxation of a village district by a municipality for certain municipal services.
SPONSORS: Rep. Hopfgarten, Rock 5
COMMITTEE: Municipal and County Government
This bill prohibiting taxation of a village district by a municipality for certain municipal services.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0855
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT prohibiting taxation of a village district by a municipality for certain municipal services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraphs; Duplicate Taxation Prohibited. Amend RSA 52:16 by inserting after paragraph II the following new paragraphs:
III. Upon approval of the district’s establishment and boundaries, a district shall not be taxed by the municipality that previously provided services to the district.
IV. Upon dissolution of the district, a district shall not be taxed by the municipality until the conclusion of the fiscal year in which the district is dissolved.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
05-0855
2/1/05
HB 666-FN-LOCAL - FISCAL NOTE
AN ACT prohibiting taxation of a village district by a municipality for certain municipal services.
FISCAL IMPACT:
The New Hampshire Municipal Association and Department of Revenue Administration state this bill may increase local expenditures by an indeterminable amount in FY 2005 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or state and county expenditures.
METHODOLOGY:
The New Hampshire Municipal Association states this bill provides that upon approval of a village district’s establishment and boundaries, “a district shall not be taxed by the municipality that previously provided services to the district.” Although this bill prohibits taxation of the district, the Association assumes it is intended to prohibit taxation of residents within the district, since the district itself would not be taxed in any event. The Association also assumes this bill does not intend to preclude taxation of residents in the district, but only taxation related to services that are provided by the district. By exempting village district residents from some amount of municipal taxation, this bill would shift the property tax burden to other taxpayers in the municipality. It is impossible to determine the amount of fiscal impact because of the number of village districts around the state and the wide variations in size and purpose of such districts. Further, it would be difficult for a given municipality to determine the appropriate basis for discounting taxes payable by residents of a village district due to the discontinuance of services by the municipality. Depending on the purpose for which the village district is formed, there may not be a complete separation between services provided by the municipality and by the village district.
The Department of Revenue Administration (DRA) states this bill intends that village district taxpayers would not be taxed for a particular service of the town which is also provided by the village district. DRA states this bill would increase local expenditures to the extent modification to the town’s billing system computer software would be needed to handle multiple town rates.