Revision: June 4, 2009, midnight
HB 96 – AS AMENDED BY THE SENATE
06/03/09 2067s
2009 SESSION
03/01
HOUSE BILL 96
AN ACT correcting certain references relating to municipal growth management, and allowing certain replacement structures to qualify for the community revitalization tax relief incentive.
COMMITTEE: Municipal and County Government
This bill corrects certain statutory provisions relating to municipal growth management made obsolete by changes to RSA 674:23 enacted in HB 1260-LOCAL of the 2008 regular legislative session (2008, 360).
This bill also allows certain replacement structures to qualify for the community revitalization tax relief incentive.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06/03/09 2067s
09-0245
03/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT correcting certain references relating to municipal growth management, and allowing certain replacement structures to qualify for the community revitalization tax relief incentive.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Local Water Resource Management and Protection Plans. Amend RSA 4-C:22, III to read as follows:
III. If a municipality determines there is an immediate need to develop or amend subdivision or site plan review regulations in the manner provided by RSA 675:6 or to prevent deterioration of a critical water resource through a [zoning ordinance or amendment] temporary moratorium or limitation on the issuance of building permits or the granting of subdivision or site plan approval in the manner provided by RSA 674:23, [II,] it may adopt such temporary measures for protection of water resources. Such measures shall be valid as provided in RSA 674:23[, III].
2 Power to Regulate Subdivisions. Amend RSA 674:35, III to read as follows:
III. The planning board shall not limit the number of building permits that may be issued except in accordance with an innovative land use control ordinance addressing timing incentives and phased development under RSA 674:21 and adopted under RSA 674:16; or an ordinance to regulate and control the timing of development, adopted under RSA 674:22; or an ordinance [to regulate growth via interim regulation] establishing a temporary moratorium or limitation on the issuance of building permits, adopted under RSA 674:23. This paragraph shall not be construed to limit the planning board's authority to deny a subdivision application on the basis that it is scattered or premature.
3 Declaration of Public Benefit. Amend RSA 79-E:1, II-III to read as follows:
II. It is further declared to be a public benefit to encourage the rehabilitation, or in certain cases the replacement of the many underutilized structures in urban and town centers as a means of encouraging growth of economic, residential, and municipal uses in a more compact pattern, in accordance with RSA 9-B.
III. Short-term property assessment tax relief and a related covenant to protect public benefit as provided under this chapter are considered to provide a demonstrated public benefit if they encourage replacement or substantial rehabilitation and use of qualifying structures as defined in this chapter.
4 New Paragraph; Community Revitalization Tax Relief Incentive; Definitions; Replacement. Amend RSA 79-E:2 by inserting after paragraph I the following new paragraph:
I-a. “Replacement” means the demolition or removal of a qualifying structure and the construction of a new structure on the same lot.
5 New Paragraph; Community Revitalization Tax Relief Incentive; Definitions; Tax Increment Finance District. Amend RSA 79-E:2 by inserting after paragraph II the following new paragraph:
II-a. “Tax increment finance district” means any district established in accordance with the provisions of RSA 162-K.
6 Community Revitalization Tax Relief Incentive; Definitions; Tax Relief. Amend RSA 79-E:2, III to read as follows:
III. “Tax relief'” means that for a period of time determined by a local governing body in accordance with this chapter, the property tax on a qualifying structure shall not increase as a result of the substantial rehabilitation thereof, or the property tax on a replacement structure shall not exceed the property tax on the replaced qualifying structure as a result of the replacement thereof.
7 Community Revitalization Tax Relief Incentive; Community Revitalization Tax Relief Incentive. Amend RSA 79-E:4, I-II to read as follows:
I. An owner of a qualifying structure who intends to substantially rehabilitate or replace such structure may apply to the governing body of the municipality in which the property is located for tax relief. The applicant shall include the address of the property, a description of the intended rehabilitation or replacement, any changes in use of the property resulting from the rehabilitation or replacement, and an application fee.
II. Upon receipt of an application, the governing body shall hold a duly noticed public hearing to take place no later than 60 days from receipt of the application, to determine whether the structure at issue is a qualifying structure; whether [the] any proposed rehabilitation qualifies as substantial rehabilitation; and whether there is a public benefit to granting the requested tax relief and, if so, for what duration.
8 Community Revitalization Tax Relief Incentive; Repayment. Amend RSA 79-E:4, IV (a)(3) to read as follows:
(3) The governing body finds that the proposed use is consistent with the municipality's master plan or development regulations[.]; and
(4) In the case of a replacement, the governing body finds that the replaced qualifying structure does not have particular historical, cultural, or architectural significance. In connection with this finding, the governing body may request that the division of historic resources conduct a project review in order to satisfy the governing body that historical resources will not be adversely affected.
9 Community Revitalization Tax Relief Incentive; Tax Increment Finance Districts. Amend RSA 79-E:4, V to read as follows:
V. If the governing body, in its discretion, denies the application for tax relief, such denial shall be accompanied by a written explanation. The governing body's decision may be appealed either to the board of tax and land appeals or the superior court in the same manner as provided for appeals of current use classification pursuant to RSA 79-A:9 or 79-A:11 provided, however, that such denial shall be deemed discretionary and shall not be set aside by the board of tax and land appeals or the superior court except for bad faith or discrimination. Municipalities shall have no obligation to grant an application for tax relief for properties located within tax increment finance districts, as established under RSA 162-K, when the governing body determines, in its sole discretion, that the granting of tax relief will impede, reduce, or negatively affect:
(a) The development program or financing plans for such tax increment finance districts; or
(b) The ability to satisfy or expedite repayment of debt service obligations incurred for a tax increment financing district; or
(c) The ability to satisfy program administration, operating, or maintenance expenses within a tax increment financing district.
10 Community Revitalization Tax Relief Incentive; Tax Relief Period. Amend RSA 79-E:5, I to read as follows:
I. The governing body may grant such tax assessment relief for a period of up to 5 years, beginning with the completion of the substantial rehabilitation or replacement.
11 Community Revitalization Tax Relief Incentive; Public Benefit. Amend the introductory paragraph of RSA 79-E:7 to read as follows:
The proposed substantial rehabilitation or replacement must provide at least one of the following public benefits in order to qualify for tax relief under this chapter:
12 Community Revitalization Tax Relief Incentive; Covenant to Protect Public Benefit. Amend RSA 79-E:8, I to read as follows:
I. Tax relief for the substantial rehabilitation or replacement of a qualifying structure shall be effective only after a property owner grants to the municipality a covenant ensuring that the structure shall be maintained and used in a manner that furthers the public benefits for which the tax relief was granted.
13 Effective Date.
I. Section 1-2 of this act shall take effect 60 days after its passage.
II. The remainder of this act shall take effect upon its passage.