HB 243 – AS INTRODUCED
2011 SESSION
10/04
HOUSE BILL 243
AN ACT enabling towns and cities to establish a local revenue option as an alternative to property taxation for the funding of local government costs.
SPONSORS: Rep. Weed, Ches 3; Rep. Butynski, Ches 4
This bill allows towns and cities to adopt an alternative revenue tax or program for the funding of its local government costs beginning with the 2013 property tax year. The local revenue option shall be in lieu of the property tax used to fund general government, local school, and county costs. The bill also establishes a commission to determine the necessary changes to state law and local procedures.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0301
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT enabling towns and cities to establish a local revenue option as an alternative to property taxation for the funding of local government costs.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Taxation; Local Revenue Option. Amend RSA by inserting after chapter 76 the following new chapter:
CHAPTER 76-A
LOCAL REVENUE OPTION
76-A:1 Establishment of Local Revenue Option; Department Assistance.
I. As an alternative to the imposition of property taxes by towns and cities, the procedures in this chapter shall allow a town or city to devise, adopt, and implement a tax or other revenue program for funding the budget appropriations of the municipality beginning with the budget years which begin on or after April 1, 2013. Alternatives may include but shall not be limited to an income tax based on a percentage of adjusted gross income from federal tax forms, a sales tax, a value-added tax, or other revenue program, provided the tax or revenue program is applied proportionally and reasonably within the taxing district, and is designed to replace the revenue derived from property taxes.
II. The department of revenue administration shall assist the town or city in developing the local revenue option and coordinating the adoption and implementation with the department.
III. The local revenue option under this chapter shall be limited to not more than 4 municipalities.
76-A:2 Procedure for Adoption. Subject to the limitations in RSA 76-A:1, a town or city may implement a local revenue option as follows:
I. Any town or city may adopt the provisions of this chapter in the following manner:
(a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3.
(b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such municipality may vote to place the question on the official ballot for any regular municipal election.
II. The vote shall specify the provisions of this chapter, the full text and analysis of the local revenue option to be used by the town or city, including procedures for the determination, collection, and enforcement of the tax or other program, and the result of the vote under paragraph IV. If a majority of those voting on the question vote “yes,” the local revenue option shall take effect within the town or city, on the date set by the governing body, or in the tax year beginning April 1 following its adoption, whichever shall occur first.
III. Upon the effective date of the local revenue option the town or city shall be exempt from the requirements of RSA 21-J, RSA 72, RSA 73, RSA 74, and RSA 76, relating to the inventory for, and assessment and collection of local property taxes. The requirements under RSA 21-J for the filing of reports and budgets with the department of revenue administration and for appraisals and procedures related to equalization of property shall continue and be imposed on the town or city.
IV. Prior to the vote under paragraph I and following a duly noticed public hearing in the town or city, the proposed local revenue option shall be subject to a vote by the members of the house of representatives who represent the town or city and the senator or senators whose district includes the town or city. A majority vote of such members and senators shall be required to proceed with adoption under paragraph I.
V. A municipality may modify, if applicable, or rescind the local revenue option provided in this chapter in the manner described in this section.
76-A:3 Application of Chapter. A local revenue option tax or other program adopted under this chapter shall provide revenue for the town or city for purposes of funding appropriations for general government of the town or city including costs under RSA 33, local school costs in excess of costs funded by the state education tax and state education aid, and county costs assessed under RSA 29:11. The local revenue option shall not apply to village district taxes or assessments collected by the town or city or the state education tax.
76-A:4 Effect on Exemptions, Credits, Deferrals. A town or city adopting a local revenue option may establish and grant credits, exemptions, or waivers from the local revenue tax or other program. Any exemption, credit, or deferral granted pursuant to any provision of RSA 72 shall not apply to taxpayers under this chapter, but shall continue to apply to any property tax levied by the selectmen or assessors.
76-A:5 Commission Established. There is established a commission to study the local revenue option and determine any changes to state law and local procedures which are necessary for implementation of the local revenue option under RSA 76-A.
I. The members of the commission shall be as follows:
(a) Three members of the house of representatives, appointed by the speaker of the house of representatives.
(b) Three members of the senate, appointed by the president of the senate.
(c) The commissioner of the department of revenue administration, or designee.
(d) A member appointed by the New Hampshire Municipal Association.
II. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.
III. The commission shall study the local revenue option established by RSA 76-A and determine any further changes to state law and local procedures which are necessary for implementation of RSA 76-A.
IV. The members of the commission shall elect a chairperson from among the members. The first meeting of the commission shall be called by the first-named house member. The first meeting of the commission shall be held within 45 days of the effective date of this section. Four members of the commission shall constitute a quorum.
V. The commission shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2012.
2 Effective Date. This act shall take effect 60 days after its passage.