HB 597-FN-A-LOCAL - AS INTRODUCED
2009 SESSION
09/04
HOUSE BILL 597-FN-A-LOCAL
AN ACT revising the property tax relief program in order to cap education tax payments at one percent of adjusted gross income.
SPONSORS: Rep. Butterworth, Ches 4
This bill revises the current “low and moderate income homeowners property tax relief” program as the “state education tax relief” program. This relief program will be available to any owner of residential property whose state education tax exceeds one percent of adjusted gross income. This bill allows a rebate from state education taxes paid in the amount of the difference between state education property tax paid for each unit of residential property and one percent of adjusted gross income.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0301
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT revising the property tax relief program in order to cap education tax payments at one percent of adjusted gross income.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Subdivision Heading Amended. The subdivision heading preceding RSA 198:56 is repealed and reenacted to read as follows:
State Education Tax Relief
2 Definition; Tax Relief. Amend RSA 198:56, IV to read as follows:
IV. “Tax relief” means the [low and moderate income homeowners property] state education tax relief provided in this subdivision.
3 Section Heading Amended. The section heading of RSA 198:57 is repealed and reenacted to read as follows:
198:57 State Education Tax Relief.
4 Eligibility. RSA 198:57, III is repealed and reenacted to read as follows:
III. An eligible tax relief claimant is a person who:
(a) Owns residential property subject to the education tax; and
(b) Paid state education taxes in excess of one percent of household income.
5 Calculation of Rebate. RSA 198:57, IV is repealed and reenacted to read as follows:
IV.(a) All or a portion of an eligible tax relief claimant’s state education taxes under RSA 76:3 for each unit of residential property shall be rebated in the amount equal to the difference between one percent of household income and state education taxes paid.
(b) The amount determined by subparagraph (a) is the allowable tax relief in any year.
6 Reference Change. Amend RSA 21-I:18, I(l) to read as follows:
(l) Purchases of services from private contractors by the department of revenue administration with respect to the administration of [low and moderate income homeowners property] state education tax relief claims.
7 Effective Date. This act shall take effect July 1, 2009.
LBAO
09-0301
Revised 02/11/09
HB 597 FISCAL NOTE
AN ACT revising the property tax relief program in order to cap education tax payments at one percent of adjusted gross income.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state Education Trust Fund revenue by an indeterminable amount in FY 2010 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county, and local expenditures.
METHODOLOGY:
This bill revises the current “low and moderate income homeowners property tax relief” program as the “state education tax relief” program. This relief program will be available to any owner of residential property whose state education tax exceeds one percent of adjusted gross income. The proposed legislation allows a rebate from state education taxes paid in the amount of the difference between state education property tax paid for each unit of residential property and one percent of adjusted gross income. The Department of Revenue Administration states the fiscal impact of the proposed legislation can not be determined because they do not know the amount of state education taxes paid by New Hampshire taxpayers on an individual basis. However, the Department also states that presumably the proposed legislation would give more rebates than the current program noting that the current program gave back $4,100,000 in claim year 2007.
The Department adds that based on tax year 2006, there were 669,453 tax returns filed with New Hampshire addresses. Of these returns, 576,715 had an AGI of less than $100,000 of which 1% would be $999.99 or less; 410,104 had an AGI of less than $50,000 of which 1% would be $499.99 or less, and 9,850 had an AGI of $0 or less and would therefore not be required to pay the statewide education property tax at all.