HB693 (2005) Detail

Making the low and moderate income homeowners property tax relief program a tax cap and applicable to current year tax liability.


HB 693-FN – AS INTRODUCED

2005 SESSION

05-0826

10/09

HOUSE BILL 693-FN

AN ACT making the low and moderate income homeowners property tax relief program a tax cap and applicable to current year tax liability.

SPONSORS: Rep. Solomon, Graf 10

COMMITTEE: Ways and Means

ANALYSIS

This bill modifies the low and moderate income homeowners property tax relief program for statewide education taxes by allowing all eligible claimants full relief against current state education tax liability.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0826

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT making the low and moderate income homeowners property tax relief program a tax cap and applicable to current year tax liability.

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

1 Findings and Purpose. The general court finds that the state of New Hampshire is unique in the nation in its dependency on property tax for exacting revenue from its citizenry. While this system minimizes wasteful bureaucracy, New Hampshire is also unique in that it does not provide a safety net for those of its citizens who are uniquely disadvantaged compared with residents of most other states. Other states, which do not depend exclusively on citizen property taxation, do recognize the need and provide for such a safety net. In view of New Hampshire’s exclusive dependency on property taxation of its private citizenry, it is particularly inhumane that here this safety net is lacking. Despite economic fluctuations, property taxes historically have risen. However, the ability of citizens to pay these taxes has for many not increased but decreased, as in the case of retired persons. The result for many New Hampshire citizens is the ludicrous situation whereby they must pay thousands of dollars in property tax and interest and dividends tax to the state of New Hampshire, but have little or no federal tax liability because their taxable income is too low. In no other state is this allowed to occur. For these disadvantaged citizens it might be said that the state of New Hampshire deprives them of their rights to life, liberty and the pursuit of happiness. The general court therefore finds that an income based property tax cap, sorely needed in the state of New Hampshire, would be a public benefit. With negligible additional cost or bureaucracy, this would extend the “New Hampshire advantage” to citizens who are presently disadvantaged in New Hampshire.

2 Statewide Education Tax Relief; Procedure for Claims. RSA 198:57, IV is repealed and reenacted to read as follows:

IV. The entire amount of an eligible tax relief claimant’s state education property taxes, RSA 76:3, shall be paid by the state. The commissioner of revenue administration shall notify local tax collectors of the taxpayer and property identity, tax relief amount, and any other necessary information related to the statewide education tax to be paid by the state in satisfaction of the claimant’s tax liability under RSA 76:3. Payment by the state shall be noted on the claimant’s tax bill.

3 Application Procedure; Payment. Amend RSA 198:57, VI to read as follows:

VI.(a) Complete applications for state tax relief shall be filed with the department of revenue administration between May 1 and June 30 following [the due date of the final tax bill as defined in RSA 76:1-a for state education property taxes] the first day of the applicant’s property tax year.

(b) The commissioner may accept late filed, but complete, applications filed on or before November 1, under the following circumstances:

(1) The claimant satisfies the commissioner that the claimant was prevented from timely filing the application due to accident, mistake or misfortune.

(2) The claimant or other adult member of the household requested an extension of time to file his or her federal income tax return.

(3) The claimant making a late filing shall be liable for full payment of the property tax due for the homestead and receive a refund of the tax relief as provided in RSA 198:61.

4 Payment of Tax Claims. Amend RSA 198:61 to read as follows:

198:61 Payment or Refund of Tax Claims. The department of revenue administration shall review a timely filed claim for tax relief filed with it and, if such claim is determined to be valid, shall certify such amount to the state treasurer within 120 days who shall pay such claims from funds in the education trust fund directly to the claimant’s local tax collector. Payment of late filed claims shall be made as a refund to the claimant. Such sums are hereby appropriated and the governor is authorized to draw a warrant from the education trust fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of revenue administration shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the payment of valid claims. The department shall notify a claimant whose claim is rejected in whole or in part of such determination within 90 days of the department’s receipt of the claim and all required documentation.

5 Effective Date. This act shall take effect July 1, 2005.

LBAO

05-0826

Revised 2/7/05

HB 693 FISCAL NOTE

AN ACT making the low and moderate income homeowners property tax relief program a tax cap and applicable to current year tax liability.

FISCAL IMPACT:

      The Department of Revenue Administration indicates this bill will increase state education trust fund expenditures by $4,720,000 in FY 2006. The Department did not estimate a fiscal impact for FY 2007 and beyond. There will be no fiscal impact to state, county and local revenue or county and local expenditures.

METHODOLOGY:

    The Department made the following assumptions when estimating the fiscal impact for FY 2006:

      • The median value of owner occupied housing is $150,000.

      • The applicable tax rate in FY 2006 is $2.90

      • The number of claimants in FY 2006 will equal the number in FY 2004, 27,861.

      • The FY 2004 expense under the current statute for low and moderate income homeowners property tax relief, $7,400,000, will remain constant through FY 2006.

    Calculation:

    Median Value - Owner Occupied Housing $ 150,000

    Tax Rate Per Thousand 2.90

    Amount of Rebate per Claimant $ 435

    Number of Claimants 27,861

    Total Rebate (rounded) $12,120,000

    Current Rebate 7,400,000

    Increase in Expenditures $ 4,720,000

Links

HB693 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB693 Revision: 9098 Date: Jan. 21, 2010, midnight

Docket