SB 333-FN-A-LOCAL – AS INTRODUCED
2008 SESSION
09/03
SENATE BILL 333-FN-A-LOCAL
This bill establishes an exemption from the real estate transfer tax for transfers to a closely held corporation, limited liability company, general partnership, limited partnership, or limited liability partnership; provided that the shareholders, members, general partners, or limited partners are comprised solely of and identical to the grantors.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2748
09/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT establishing an exemption from the real estate transfer tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Real Estate Transfer Tax; Exemption. Amend RSA 78-B:2 by inserting after paragraph XIX the following new paragraph:
XX. To transfers to a closely held corporation, limited liability company, general partnership, limited partnership, or limited liability partnership; provided that the shareholders, members, general partners, or limited partners are comprised solely of and identical to the grantors.
2 Effective Date. This act shall take effect July 1, 2008.
LBAO
08-2748
11/30/07
SB 333-FN-A-LOCAL - FISCAL NOTE
AN ACT establishing an exemption from the real estate transfer tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state unrestricted general fund revenue, state education trust fund revenue and county revenue, and increase state general fund expenditures by an indeterminable amount in FY 2009 and each year thereafter. There is no fiscal impact on county and local expenditures or local revenue.
METHODOLOGY:
The Department of Revenue Administration (DRA) states that this bill provides an exemption from the real estate transfer tax for transfers to a closely held corporation, limited liability company, general partnership, limited partnership, or limited liability partnership if comprised solely of identical grantors. The DRA determined that the reduction in real estate tax revenue from this exemption would be $10 to $30 million in FY 2009 based on actual observation of the impact of the previous repeal of a similar provision. Although the Department did not make a projection beyond FY 2009, similar losses could be expected to occur in subsequent fiscal years. DRA also indicates that reductions in real estate transfer tax collections will result in a reduction of county revenue from the commission counties receive for processing this tax. The Department further states that this tax change will require significant, but indeterminable, increased audit expenditures to ensure taxpayer compliance.