Revision: Dec. 24, 2015, midnight
\t \t\tHB 1656-FN - AS INTRODUCED
2016 SESSION
\t16-2461
\t09/10
HOUSE BILL\t1656-FN
AN ACT\trelative to exceptions to the real estate transfer tax.
SPONSORS:\tRep. D. McGuire, Merr. 21; Rep. Lovejoy, Rock. 36; Rep. Abrami, Rock. 19; Sen. Sanborn, Dist 9
COMMITTEE:\tWays and Means
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ANALYSIS
\tThis bill establishes an exception from the real estate transfer tax for certain transfers of title.
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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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2461
\t09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to exceptions to the real estate transfer tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 New Paragraph; Exception to Real Estate Transfer Tax. Amend RSA 78-B:2 by inserting after paragraph XX the following new paragraph:
\t\tXXI.(a) To a transfer of title from an entity, the ownership of which is represented by transferable interests, to another entity, the ownership of which is represented by transferable interests, provided that:
\t\t\t\t(1) The transfer of title is coincidental to a change in the transferor entity's form of organization to that of the transferee entity;
\t\t\t\t(2) As a result of the change in the transferor entity's form of organization, the assets and liabilities of the transferor entity immediately preceding the change in form of organization and the assets and liabilities of the transferee entity immediately following the change in form of organization are the same; and
\t\t\t\t(3) At the time of the transfer of title, the owner or owners of the transferor and the owner or owners of the transferee, and the respective ownership percentages of each, are identical.
\t\t\t(b) For the purpose of this paragraph, a beneficial interest in a trust shall be considered an ownership interest in such trust.
\t2 Effective Date. This act shall take effect July 1, 2016.
\t\t\t\t\t\t\t\t\t\t\t16-2461.0
\t\t\t\t\t\t\t\t\t\t\t10/26/15
HB 1656-FN- FISCAL NOTE
AN ACT\trelative to exceptions to the real estate transfer tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will decrease state general fund revenue and county revenue by an indeterminable amount in FY 2017 and each year thereafter. There is no impact on local revenue or state, county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill exempts from the real estate transfer tax certain real estate transfers from an entity to another entity. Specifically, the exemptions would apply (1) if the transfer is coincidental to a change in the transferor's form of organization; (2) if the assets and liabilities of the transferor become the assets and liabilities of the transferee; or, (3) if the owner(s) of the transferor and the owner(s) of the transferee are the same with identical ownership percentages. The Department states these exemptions will result in a decrease in real estate transfer tax revenue to the state and counties. The register of deeds in each county receives 4 percent of the face value of real estate transfer tax stamps issued at the registry. Determining the impact on revenue is further complicated as some number of real estate transactions made exempt by the proposed bill would have already been exempt under administrative rules (NH Admin. Rules Rev 800), such as the rule governing single entity reorganizations and the rule governing LLC conversions.
The Department states it can administer the provisions of this bill with no increase in expenditures.