Revision: March 8, 2016, midnight
\t \t\tHB 1198-FN-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2047
\t10/04
HOUSE BILL\t1198-FN-LOCAL
AN ACT\trelative to the valuation of poles and conduits owned by telephone utilities.
SPONSORS:\tRep. Abrami, Rock. 19; Rep. Lovejoy, Rock. 36; Rep. Proulx, Hills. 44; Rep. Barry, Hills. 21; Rep. Chandler, Carr. 1; Sen. Carson, Dist 14; Sen. Lasky, Dist 13
COMMITTEE:\tWays and Means
-----------------------------------------------------------------
ANALYSIS
\tThis bill establishes the valuation for purposes of the property tax assessment of poles or conduits employed in the transmission of telecommunication owned in whole or in part by telephone utilities.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2047
\t10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to the valuation of poles and conduits owned by telephone utilities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Reference Change. Amend RSA 72:8-a to read as follows:
\t72:8-a Telecommunications Poles and Conduits. [Except as provided in RSA 72:8-b,] All structures, poles, towers, and conduits employed in the transmission of telecommunication, cable, or commercial mobile radio services shall be taxed as real estate in the town in which such property or any part of it is situated. Except as provided in RSA 72:8-c, the valuation of such property shall be based on its value as real estate. Other devices and equipment, including wires, fiber optics, and switching equipment employed in the transmission of telecommunication, cable, or commercial mobile radio services shall not be taxable as real estate.
\t2 New Section; Property Taxation; Valuation of Poles and Conduits Owned by Telephone Utilities. Amend RSA 72 by inserting after section 8-b the following new section:
\t72:8-c Valuation of Poles and Conduits Owned by Telephone Utilities. The value of poles or conduits employed in the transmission of telecommunication owned in whole or in part by telephone utilities, as defined in RSA 362:7, or providers of Voice over Internet Protocol (“VoIP”) service or IP-enabled service, each as defined in RSA 362:7, for purposes of tax assessment against said entity shall be determined by the following formula: the direct replacement cost of the pole or conduit, defined as the actual cost of the pole or conduit including the labor cost of installation less depreciation calculated on a straight-line basis for a period of 30 years with a residual value of no less than 20 percent.
\t3 Effective Date. This act shall take effect upon its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2047
\t\t\t\t\t\t\t\t\t\t\t10/28/15
1198-FN-LOCAL - FISCAL NOTE
AN ACT\trelative to the valuation of poles and conduits owned by telephone utilities.
FISCAL IMPACT:
The Department of Revenue and the New Hampshire Municipal Association state this bill, as introduced, may have an indeterminable impact on local expenditures in FY 2016 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or state and county expenditures.
METHODOLOGY:
The Department of Revenue states this bill establishes a formula for determining the value of poles or conduits owned by telephone utilities that municipalities must employ for valuation purposes. The Department of Revenue states this bill may increase local expenditures because municipalities would need to collect and maintain detailed information on each pole and conduit to comply with the law. The Department of Revenue states the statutory formula for pole and conduit valuation in this bill could result in shifting the local property tax burden which should have a net zero impact on local revenue.
The New Hampshire Municipal Association states the valuation formula in this bill will, in most cases, result in a lower than actual market value for poles and conduits. The New Hampshire Municipal Association states this bill will shift the property tax burden to some extent, and may or may not impact local expenditures. An affected municipality would either need to increase the tax rate for all other taxpayers or keep the tax rate constant and realize reduced tax revenue which could lead to reductions in local expenditures.