Revision: Jan. 11, 2010, midnight
HB 852-FN-A-LOCAL – AS INTRODUCED
2007 SESSION
09/01
HOUSE BILL 852-FN-A-LOCAL
AN ACT changing the rate and distribution of the excavation tax.
COMMITTEE: Municipal and County Government
This bill changes the rate and distribution of the excavation tax on sand and gravel.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0125
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT changing the rate and distribution of the excavation tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Application of Excavation Tax. Amend the introductory paragraph of RSA 72-B:1, I to read as follows:
I. Earth, as defined in RSA 155-E:1, I, shall be exempt from taxation as real property under RSA 72:6 and RSA 72:13. An excavation tax shall be assessed upon the excavation of earth against an owner as defined in RSA 72-B:2, VIII. Such tax shall be assessed at the rate of [$.02] $.50 per cubic yard of earth excavated. The following are exempt from the excavation tax:
2 Disposition of Excavation Tax. Amend RSA 72-B:11 to read as follows:
72-B:11 Disposition of the Excavation Tax.
I. Fifty percent of the excavation tax collected in the incorporated towns and cities under RSA 72-B:4 shall be paid by the tax collectors into their respective treasuries for the general use of the city or town. The remaining 50 percent shall be remitted by the tax collectors to the state treasurer to be deposited in the general fund.
II. The taxes assessed under RSA 72-B:4 in any unincorporated place shall be collected by the county commissioners of the county in which the place is located and paid by them to the county treasurer. The county commissioners shall have the same powers in collecting the taxes as provided under RSA 80 and RSA 81. [All] Fifty percent of taxes collected by the counties under RSA 72-B:4 shall be credited to the unincorporated place from which the excavation tax was collected and shall be used against the unincorporated place's share for the county tax for the ensuing year. The remaining 50 percent shall be remitted by the county commissioners to the state treasurer to be deposited in the general fund.
3 Effective Date. This act shall take effect April 1, 2007.
LBAO
07-0125
01/30/07
HB 852-FN-A-LOCAL - FISCAL NOTE
AN ACT changing the rate and distribution of the excavation tax.
FISCAL IMPACT:
The Department of Revenue Administration, NH Municipal Association, and NH Association of Counties state this bill will increase state general fund revenue, county revenue, and local revenue by an indeterminable amount in FY 2007 and each fiscal year thereafter. There will be no fiscal impact on state, county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill increases the excavation tax from $0.02/cubic yard, with all revenue retained by local governments, to $.50/cubic yard, with half of revenue retained by local governments and half deposited in the state general fund. The Department states it conservatively estimates the annual increase in total cubic yards excavated at 0.5%, based on the 0.6% increase from tax year 2004 to tax year 2005. The Department provided the following estimate of the increase in state and local revenue under this bill, multiplying total estimated cubic yards excavated by $.25 for the state share of revenue and $.23 for the local share of revenue, recognizing local governments currently collect $0.02/cubic yard:
FY 2007** FY 2008 FY 2009 FY 2010 FY 2011
Est. Cubic Yards
Excavated 4,403,743 17,703,047 17,791,562 17,880,520 17,969,923
State Revenue $1,100,936 $4,425,762 $4,447,891 $4,470,130 $4,492,481
Local Revenue $1,012,861 $4,071,701 $4,092,059 $4,112,520 $4,133,082
** April 1, 2007 through June 30, 2007
The NH Municipal Association estimated total cubic yards excavated using data from each municipality’s MS-4 forms from FY 2004-FY 2006. The Association determined the three-year average of local gravel tax revenue and divided that by the current assessment of $0.02/cubic yard to determine average total cubic yards excavated was 14,652,777. The Association assumed the three-year average would be the total number of cubic yards excavated in FY 2007
LBAO
07-0125
01/30/07
and would remain unchanged in future fiscal years. The Association estimated increased state and local revenue as follows:
FY 2007** FY 2008 & each fiscal year thereafter
Est. Cubic Yards
Excavated 3,663,194 14,652,777
State Revenue $915,799 $3,663,194
Local Revenue $842,535 $3,370,139
** April 1, 2007 through June 30, 2007
The NH Association of Counties states this bill will increase revenues in the two counties containing unincorporated places, Grafton County and Coos County, by an indeterminable amount in FY 2007 and each fiscal year thereafter.