HB 1463 – AS INTRODUCED
HOUSE BILL 1463
This bill enables towns and cities to grant an exemption from assessed value for low income residents who qualify by income and asset limitations.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT allowing municipalities to grant a property tax exemption for residential property of qualified low income persons in need of property tax relief.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Low Income Property Tax Exemption. Amend RSA 72 by inserting after section 39-b the following new section:
72:39-c Low Income Property Tax Exemption.
I. A town or city may adopt or modify the low income property tax exemption granted under this section by the procedure in RSA 72:27-a.
II. Each person owning residential property in the town or city, as his or her principal place of residence, shall be exempt on the assessed value of his or her residential real estate, for each year the person qualifies, to the value determined by the town or city.
III. Only one exemption may be granted for each residence. A town or city may exempt any amount it may determine is appropriate to address property tax relief for qualified residents in accordance with the procedures in this section. The term “residential real estate’’ as used in this section shall mean the same as defined in RSA 72:29. All applications made under this section shall be subject to the provisions of RSA 72:33 and RSA 72:34. The exemption may be applied to any land or buildings appurtenant to the residence or to manufactured housing if that is the principal place of abode.
IV. No exemption shall be allowed under paragraph II unless the person applying therefor:
(a) Has resided in this state for at least 3 consecutive years preceding April 1 in the year in which the exemption is claimed.
(b) Had in the calendar year preceding said April 1 a net income from all sources, or if married, a combined net income from all sources, of not more than the respective amount determined by the city or town for purposes of paragraph II. Under no circumstances shall the amount determined by the city or town be less than $13,400 for a single person or $20,400 for married persons. The net income shall be determined by deducting from all moneys received, from any source including social security or pension payments, the amount of any of the following or the sum thereof:
(1) Life insurance paid on the death of an insured.
(2) Expenses and costs incurred in the course of conducting a business enterprise.
(3) Proceeds from the sale of assets.
(c) Owns net assets not in excess of the amount determined by the city or town for purposes of paragraph II, excluding the value of the person’s actual residence and the land upon which it is located up to the greater of 2 acres or the minimum single family residential lot size specified in the local zoning ordinance. The amount determined by the city or town shall not be less than $35,000 or, if married, combined net assets in such greater amount as may be determined by the town or city. “Net assets’’ means the value of all assets, tangible and intangible, minus the value of any good faith encumbrances. “Residence’’ means the housing unit, and related structures such as an unattached garage or woodshed, which is the person’s principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. “Residence’’ shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.
V. Additional requirements for an exemption under paragraph II shall be that the property is:
(a) Owned by the resident;
(b) Owned by a resident jointly or in common with the resident’s spouse, either of whom meets the requirements for the exemption claimed;
(c) Owned by a resident jointly or in common with a person not the resident’s spouse, if the resident meets the applicable requirements for the exemption claimed;
(d) Owned by a resident, or the resident’s spouse, either of whom meets the requirements for the exemption claimed, and when they have been married to each other for at least 5 consecutive years.
2 Low Income 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 72:39-c, RSA 72:62, RSA 72:66, or RSA 72:70 in the following manner:
3 Definitions; References 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, 38-b, 39-a, 39-c, 62, 66, and 70, 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 Property Taxation; Application Procedure; 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, 39-c, 62, 66, and 70 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 Appeals; 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, 39-c, 41, 42, 62, 66, or 70 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 Interpretation by Commissioner of Revenue Administration. Amend RSA 72:36, I to read as follows:
I. The commissioner’s interpretation of RSA 72:28, 72:29, 72:29-a, 72:30, 72:31, 72:32, 72:33, 72:34, 72:34-a, 72:35, 72:36-a, 72:37, 72:37-a, 72:37-b, 72:38-a, 72:38-b, 72:39-a, 72:39-b, 72:41, 72:62, 72:66, [
and] 72:70, and RSA 72:39-c; and
7 Effective Date. This act shall take effect April 1, 2008.