HB1444 (2006) Detail

Relative to definitions under the real estate transfer tax.


CHAPTER 149

HB 1444 – FINAL VERSION

2006 SESSION

06-2960

09/10

HOUSE BILL 1444

AN ACT relative to definitions under the real estate transfer tax.

SPONSORS: Rep. Major, Rock 8; Sen. D'Allesandro, Dist 20

COMMITTEE: Ways and Means

ANALYSIS

This bill changes certain definitions under the real estate transfer tax.

This bill was requested by the department of revenue administration.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2960

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to definitions under the real estate transfer tax.

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

149:1 Real Estate Transfer Tax; Definitions. Amend RSA 78-B:1-a, V-VI to read as follows:

V. “Sale, granting and transfer” means every contractual transfer of real estate, or any interest in real estate from a person or entity to another person or entity, whether or not either person or entity is controlled directly or indirectly by the other person or entity in the transfer. Transfers of [transferable] interests in real estate holding companies holding real estate or holding interests in real estate, transfer of which would be taxable under this chapter if transferred directly, shall be taxable as transfers under this chapter to the extent of the fair market value of the real estate. Transfers of interests in an entity that holds, either directly or indirectly, an interest in a real estate holding company shall be considered to be a transfer of an interest in the real estate holding company to the extent of the ownership interest of the entity in the real estate holding company.

VI. “Real estate holding company” means a business organization, as defined in RSA 77-A:1, I, which is engaged principally in the business of owning, holding, selling, or leasing real estate and which[:

(a) Derives more than 50 percent of its annual gross receipts from the ownership or disposition of real estate; or

(b) Holds real estate, the fair market value of which comprises more than 50 percent of the total market value of the assets of the company exclusive of goodwill] owns real estate or an interest in real estate within the state.

149:2 Effective Date. This act shall take effect July 1, 2006.

Approved: May 22, 2006

Effective: July 1, 2006