HB695 (2006) Detail

Requiring the university system of New Hampshire to make payments in lieu of taxes for purchased property.


HB 695-FN – AS INTRODUCED

2005 SESSION

05-0839

10/04

HOUSE BILL 695-FN

AN ACT requiring the university system of New Hampshire to make payments in lieu of taxes for purchased property.

SPONSORS: Rep. M. Cooney, Graf 7; Rep. Naro, Graf 7; Rep. Dorsett, Graf 8

COMMITTEE: Education

ANALYSIS

This bill requires a payment in lieu of taxes to be made by the university system of New Hampshire for property purchased after April 1, 2005.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0839

10/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT requiring the university system of New Hampshire to make payments in lieu of taxes for purchased property.

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

1 University System Property; Payment in Lieu of Taxes. 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. However, the university system of New Hampshire shall pay, in lieu of real estate taxes, to the municipality in which any property acquired after April 1, 2005 is located, an amount equal to the amount that would have been paid as ad valorem taxes in respect to such property, had it been owned by a nongovernmental person, except that the value of the property acquired shall be determined at the time of acquisition and all future payments in lieu of taxes shall utilize that valuation.

2 Effective Date. This act shall take effect April 1, 2005.

LBAO

05-0839

Revised 2/24/05

HB 695 FISCAL NOTE

AN ACT requiring the university system of New Hampshire to make payments in lieu of taxes for purchased property.

FISCAL IMPACT:

      The University System of New Hampshire indicates this bill will increase state expenditures and local revenue by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state and county revenue or county and local expenditures.

METHODOLOGY:

    The University System of New Hampshire cannot determine the fiscal impact of this bill since it will depend on the value of property purchased after April 1, 2005 and the related tax on that property. The System assumes that over the course of 10 years it might purchase property totaling $3 million dollars, and the typical tax rate in communities where the System owns property is between $25 and $30 per thousand. Thus, as property is purchased the System’s expenditures and local revenue will increase at an average rate of $27.5 per thousand.