Bill Text - HB147 (2013)

Establishing a formula for reimbursing municipalities for assessment expenses.

Revision: Jan. 15, 2013, midnight






AN ACT establishing a formula for reimbursing municipalities for assessment expenses.

SPONSORS: Rep. Lockwood, Merr 9; Rep. Cooney, Graf 8

COMMITTEE: Municipal and County Government


This bill establishes a formula for the reimbursement of municipalities for the expenses of compliance with legislation concerning assessing standards.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.




In the Year of Our Lord Two Thousand Thirteen

AN ACT establishing a formula for reimbursing municipalities for assessment expenses.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Department of Revenue Administration; Assessing Standards; Municipal Reimbursements. Amend RSA 21-J:11-a to read as follows:

21-J:11-a Assessment Report; Municipal Reimbursement.

I. The commissioner shall report the degree to which assessments of a municipality achieve substantial compliance with applicable statutes and rules. The commissioner may consider whether:

(a) Level of assessments and uniformity of assessments are within acceptable ranges as recommended by the assessing standards board by considering, where appropriate, an assessment-to-sales-ratio study conducted by the department for the municipality;

(b) Assessment practices substantially comply with applicable statutes and rules;

(c) Exemption and credit procedures substantially comply with applicable statutes and rules;

(d) Assessments are based on reasonably accurate data; and

(e) Assessments of various types of properties are reasonably proportional to other types of properties within the municipality.

II. The commissioner shall issue a copy of the report upon its completion to the municipality and to the assessing standards board. The report shall be completed after the completion of the equalization of property valuations conducted pursuant to RSA 21-J:3, XIII. When issued, the report shall be a public document.

III. [The assessing standards board shall study and recommend to the legislature whether municipalities should be reimbursed for expenses incurred as a result of changes in assessment practices resulting from] The general court shall appropriate sufficient sums to the department to reimburse municipalities not more than once in any 5-year period for the expenses related to compliance with legislation enacted in response to the judicial interpretation of part 2, article 6 of the New Hampshire constitution in Evelyn Sirrell et al. v. State of New Hampshire et al. [and, if reimbursement is appropriate, shall recommend a formula for implementation of a reimbursement program.]. The following formula shall be used by the commissioner to determine the reimbursement amounts to municipalities under this paragraph: $2,000 for each municipality undertaking appraisals of property plus $2 per taxable parcel within the jurisdiction.

2 Effective Date. This act shall take effect July 1, 2013.





AN ACT establishing a formula for reimbursing municipalities for assessment expenses.


      The Department of Revenue Administration and the New Hampshire Municipal Association state this bill, as introduced, will increase state expenditures and local revenue by $354,800 in FY 2014, and each year thereafter. There will be no fiscal impact on state and county revenue, or county and local expenditures.


    The Department of Revenue Administration states this bill will require the Department to reimburse municipalities for assessment expenses. Under the formula, each municipality conducting an assessment will be paid a base amount of $2,000 plus $2.00 for each taxable parcel. No municipality will be reimbursed more than once in a five year period. The Department and Association estimate a $354,800 average annual cost to the state based on 235 municipalities and 652,000 taxable land parcels in the state. The average annual cost is based upon the total five year cost divided by five years. The Department notes it is possible that the cost could be higher or lower in any one fiscal year depending on when municipalities conduct assessments and seek reimbursements. The calculation is as follows:

            Total Base Amount 235 x $2,000 = $470,000

            Total Parcel Costs 652,000 x $2.00 = $1,304,000

            Total Five Year Cost: $1,774,000

            Average Annual Cost: $354,800

    The Department states this law can be administered without any additional cost.