HB1757 (2006) Detail

Relative to taxation of renewable generation facilities.


HB 1757 – AS INTRODUCED

2006 SESSION

06-3014

03/09

HOUSE BILL 1757

AN ACT relative to taxation of renewable generation facilities.

SPONSORS: Rep. Slocum, Hills 6; Rep. Cataldo, Straf 3

COMMITTEE: Municipal and County Government

ANALYSIS

This bill allows municipalities to adopt a property tax exemption for property with a renewable generation facility and establishes procedures for the owners of such facilities to make payments in lieu of taxes.

This bill is a request of the committee established by 2005, 202.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-3014

03/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to taxation of renewable generation facilities.

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

1 Revenue Administration; Duties of Commissioner; Reference Added. Amend RSA 21-J:3, XIII to read as follows:

XIII. Equalize annually by May 1 the valuation of the property as assessed in the several towns, cities, and unincorporated places in the state including the value of property exempt pursuant to RSA 72:37, 72:37-b, 72:39-a, 72:62, 72:66, [and] 72:70, and 72:74 by adding to or deducting from the aggregate valuation of the property in towns, cities, and unincorporated places such sums as will bring such valuations to the true and market value of the property, and by making such adjustments in the value of other property from which the towns, cities, and unincorporated places receive taxes or payments in lieu of taxes as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the procedures set forth in RSA 21-J:9-a.

2 Property Tax Exemption; Adoption Procedure; Reference Added. Amend the introductory paragraph of RSA 72:27-a, I to read as follows:

I. Any town or city may adopt the provisions of RSA 72:28, RSA 72:29-a, RSA 72:35, RSA 72:37, RSA 72:37-b, RSA 72:38-b, RSA 72:39-a, RSA 72:62, RSA 72:66, [or], RSA 72:70, or RSA 72:74 in the following manner:

3 Definitions; Reference Added. Amend RSA 72:29, VI to read as follows:

VI. For purposes of RSA 72:28, 29-a, 30, 31, 32, 33, 35, 36-a, 37, 37-a, 37-b, 38-a, 39-a, 62, 66, [and], 70, and 74, the ownership of real estate, as expressed by such words as “owner,” “owned,” or “own,” shall include those who have equitable title or the beneficial interest for life in the subject property.

4 Application for Tax Exemption; Reference Added. Amend the introductory paragraph of RSA 72:33, I to read as follows:

I. No person shall be entitled to the exemptions or tax credits provided by RSA 72:28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-b, 39-b, 62, 66, [and] 70, and 74 unless the person has filed with the selectmen or assessors, by April 15 preceding the setting of the tax rate, a permanent application therefor, signed under penalty of perjury, on a form approved and provided by the commissioner of revenue administration, showing that the applicant is the true and lawful owner of the property on which the exemption or tax credit is claimed and that the applicant was duly qualified upon April 1 of the year in which the exemption or tax credit is first claimed, or, in the case of financial qualifications, that the applicant is duly qualified at the time of application. The form shall include the following and such other information deemed necessary by the commissioner:

5 Appeal from Refusal to Grant; Reference Added. Amend RSA 72:34-a to read as follows:

72:34-a Appeal From Refusal to Grant Exemption, Deferral, or Tax Credit. Whenever the selectmen or assessors refuse to grant an applicant an exemption, deferral, or tax credit to which the applicant may be entitled under the provisions of RSA 72:23, 23-d, 23-e, 23-f, 23-g, 23-h, 23-i, 23-j, 23-k, 28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-b, 41, [42,] 62, 66, [or] 70, or 74 the applicant may appeal in writing, on or before September 1 following the date of notice of tax under RSA 72:1-d, to the board of tax and land appeals or the superior court, which may order an exemption, deferral, or tax credit, or an abatement if a tax has been assessed.

6 New Subdivision; Exemption for Renewable Generation Facilities. Amend RSA 72 by inserting after section 72 the following new subdivision:

Exemption for Renewable Generation Facilities

72:73 Definition of Renewable Generation Facility. In this subdivision, “renewable generation facility” means a facility which produces electric energy for resale solely by the use, as a primary energy source, of geothermal, hydro, wind, solar, or biomass energy, or any combination thereof.

72:74 Exemption for Renewable Generation Facilities; Procedure for Adoption. Each city and town may adopt under RSA 72:27-a an exemption from the assessed value, for property tax purposes, for persons owning real property which is equipped with a renewable generation facility.

72:75 Application for Exemption. Applications for exemptions under RSA 72:74 shall be governed by the provisions of RSA 72:33, 72:34, and 72:34-a.

72:76 Payment in Lieu of Taxes.

I. The owner of a renewable generation facility and the municipality in which the facility is located may enter into a voluntary agreement to make a payment in lieu of taxes.

II. When negotiating a voluntary agreement to make a payment in lieu of taxes, the owner and the municipality shall negotiate in good faith and give due consideration to all factors that may be relevant to determining a fair payment.

III. A renewable generation facility subject to a payment in lieu of taxes under this section shall remain subject to the laws governing the utility property tax under RSA 83-F.

IV. If a municipality that contains more than one school district receives a payment in lieu of taxes under this section, the proceeds shall be prorated to the districts in the same manner as local taxes are prorated to the districts.

V. The collection procedures in RSA 80 may be used to enforce a voluntary agreement to make a payment in lieu of taxes authorized by this section.

7 Applicability. Nothing in this act shall affect any agreement entered into under RSA 362-A:6 between a qualifying facility and a city, town, or village district for payment in lieu of taxes which was in existence on March 1, 1997.

8 Effective Date. This act shall take effect July 1, 2006.