CHAPTER 205
HB 1679-FN-LOCAL – FINAL VERSION
15Feb2006… 0853h
04/13/06 1656s
2006 SESSION
10/04
HOUSE BILL 1679-FN-LOCAL
AN ACT relative to the property tax exemption for university system property.
COMMITTEE: Municipal and County Government
This bill clarifies the exemption from property taxation for property of the university system of New Hampshire.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15Feb2006… 0853h
04/13/06 1656s
06-2516
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the property tax exemption for university system property.
Be it Enacted by the Senate and House of Representatives in General Court convened:
205:1 Statement of Intent.
I. The general court recognizes the university system of New Hampshire is established for the main purpose of providing a well coordinated system of public higher education offering liberal undergraduate education encompassing the major branches of learning, emphasizing our cultural heritage, and cultivating the skills of reasoning and communication. The general court further recognizes that in order to accomplish this task there are many avenues that must be pursued. One of these avenues is to maintain and operate all housing facilities, dining halls or other food service facilities, student unions, and bookstores for students and faculty on all campuses of the university system, and to collect rents from such facilities.
II. The collection of these rents in the form of leases for such facilities rises to the level of a possible conflict with RSA 187-A:25 which states that the property of the university system of New Hampshire and each of its constituent institutions and divisions is exempt from taxation. The general court also finds that the collection of these rents/leases may be construed to create competition with local businesses. The appropriate avenue to address this would be the inclusion of the university system of New Hampshire into RSA 72:23. The general court feels that any and all personal and real property used to complete the purpose for which the university system of New Hampshire was established should be exempt from taxation. The leasing policy of the university system of New Hampshire regarding payment of taxes to the host municipality closely mirrors RSA 72:23 regarding real estate and personal property tax exemptions. The general court further believes that any facilities for which rent is collected should not be exempt from taxation.
III. Therefore, the public policy for the existing statute is to prohibit a private business from escaping taxation simply by locating itself on tax exempt property or from receiving an unfair tax advantage over another private business by doing so.
205:2 New Subparagraph; Property Taxation; Exempt Property; University System. Amend RSA 72:23, I by inserting after subparagraph (c) the following new subparagraph:
(d) The exemptions provided in subparagraph (a) shall apply to the lands and the buildings and structures thereon and therein and personal property owned by the university system of New Hampshire. The requirements of subparagraph (b) shall apply to all leases and other agreements entered into or renewed on or after April 1, 2006, the terms of which provide for the use or occupation by others of real or personal property owned by the university system of New Hampshire. The remedies set forth in subparagraph (c) shall be available to enforce the payment of real and personal property taxes assessed against the lessees of property owned by the university system of New Hampshire pursuant to this subparagraph.
205:3 University System; Taxation of Property. Amend RSA 187-A:25 to read as follows:
187-A:25 Tax Exemption. The property of the university system of New Hampshire and each of its constituent institutions and divisions is exempt from taxation, as provided in RSA 72:23.
205:4 Application. This act shall apply to property taxes assessed for the tax year beginning April 1, 2006. No property taxes shall be due with respect to the property of the university system of New Hampshire for any prior tax year.
205:5 Effective Date. This act shall take effect upon its passage.
Approved: May 31, 2006
Effective: May 31, 2006