HB 1637-FN-LOCAL – AS INTRODUCED
2006 SESSION
09/10
HOUSE BILL 1637-FN-LOCAL
AN ACT reducing the rate of the timber tax.
SPONSORS: Rep. Hagan, Hills 17; Rep. Newton, Straf 1; Rep. Marshall Quandt, Rock 13
COMMITTEE: Municipal and County Government
This bill reduces the rate of the timber tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2829
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT reducing the rate of the timber tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Forest Conservation and Taxation; Normal Yield Tax; Rate Reduced. Amend RSA 79:3 to read as follows:
79:3 Normal Yield Tax. A normal yield tax at the rate of [10] 7 percent on the stumpage value at the time of cutting shall be assessed by the assessing officials within 30 days after receipt of a report of wood or timber cut is filed with said officials in the town in which said operation took place. Interest as provided in RSA 79:4-a shall be charged 30 days after the bills are mailed by the tax collector, on any tax which is due and payable and which remains unpaid.
2 Effective Date. This act shall take effect April 1, 2006.
LBAO
06-2829
11/2/05
HB 1637-FN-LOCAL - FISCAL NOTE
AN ACT reducing the rate of the timber tax.
FISCAL IMPACT:
The Department of Revenue Administration and New Hampshire Municipal Association state this bill will decrease local revenue by $1.4 million in FY 2006 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures or state and county revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill reduces the timber tax rate from 10% to 7%. Based on a review of timber tax collections for the last six years, the Department calculates this timber tax rate reduction will reduce local revenue by $1.4 million per year beginning in FY 2006.
The New Hampshire Municipal Association indicates this bill will reduce local revenue, but also states the reduction will not be a uniform decrease for each municipality. While the future amount of timber harvesting by municipality is not known, those municipalities where heavy timber harvesting occurs will be impacted the most.