Revision: March 8, 2016, midnight
\t \t\tHB 1660-FN-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2072
\t10/03
HOUSE BILL\t1660-FN-LOCAL
AN ACT\trelative to eminent domain for gas pipelines and relative to assessment of the land use change tax for eminent domain takings for energy infrastructure.
SPONSORS:\tRep. J. Belanger, Hills. 27; Rep. Flanagan, Hills. 26; Rep. Edelblut, Hills. 38; Rep. Emerson, Ches. 11; Rep. McConnell, Ches. 12; Rep. Eastman, Hills. 28; Sen. Sanborn, Dist 9
COMMITTEE:\tJudiciary
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ANALYSIS
\tThis bill allows an owner of land to require a pipeline company to take an entire tract of land under eminent domain, allows for pipeline company eminent domain takings to include public lands with consent of the legislative body, and provides for assessment of the land use change tax for certain eminent domain takings of land for energy infrastructure.
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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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2072
\t10/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to eminent domain for gas pipelines and relative to assessment of the land use change tax for eminent domain takings for energy infrastructure.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Eminent Domain by Pipeline Companies; Public Property. Amend RSA 371:15, VI to read as follows:
\t\tVI. [No lands or rights of way or easements therein shall be taken by eminent domain under the provisions of this chapter in any public property, or within the location of any railroad or other public utility company; provided that such pipeline or pipelines may be constructed under or through any public highway or street, public park or reservation or other public property if the method of such construction, compensation, if any, and the plans and specifications therefor have been approved by the authority having jurisdiction over the maintenance of such public highway or street, public park or reservation or other public property; and provided further that] Property already devoted to a public use may be acquired by eminent domain as provided in this chapter, provided that no real property belonging to the municipality, the state, or any political subdivision thereof may be acquired without its consent. In a town or city such consent shall be determined by affirmative vote at a special meeting of the legislative body within 30 days of the receipt of notice under paragraph II. In addition such pipeline or pipelines may be constructed over or across the location of any railroad or other public utility company by agreement with such railroad or other public utility company or, in the event of failure so to agree, then with the approval of the public utilities commission and in such manner as may be determined by said commission. Provided, however, that nothing herein shall be deemed to repeal any of the provisions of this chapter relative to acquisition of rights in public waters and on public lands.
\t2 New Paragraph; Eminent Domain; Residential Owner Option. Amend RSA 371:15 by inserting after paragraph VI the following new paragraph:
\t\tVII. When private real property which is used for residential purposes is proposed to be acquired in part for the construction of a high pressure gas pipeline, the owners of the residential property shall have the option to require the pipeline company to condemn and take in fee the entire tract of land impacted by the proposed partial taking including all buildings and improvements thereon if all owners, excluding lienholders and mortgagees, of the private real property make such an election and provide the commission and the pipeline company with written notice of their election within 30 days after receipt of the notice under paragraph II.
\t3 New Subparagraph; Land Use Change Tax; Energy Infrastructure. Amend RSA 79-A:7, IV by inserting after subparagraph (c) the following new subparagraph:
\t\t\t(d) Land is taken under eminent domain pursuant to RSA 371 to build energy infrastructure resulting in increased revenue for the entity taking the land. If the entire tract in current use is taken by the entity under RSA 371:15, VII, the entity taking the land shall be liable for the entire land use change tax. If the owner retains ownership of the remaining land in current use, the owner shall not be assessed a land use change tax, but if any land taken by eminent domain results in any portion of the tract no longer qualifying for current use assessment the land use change tax shall be assessed to the entity taking the land as the responsible party and the land retained by the owner shall remain in current use even if it does not qualify by reason of size.
\t4 Land Use Change Tax; Exception Added. Amend RSA 79-A:7, VI(a) and (b) to read as follows:
\t\t\t(a) Except as provided in subparagraph IV(d), land under current use is taken by eminent domain or any other type of governmental taking which would cause the use change penalty to be invoked because, by reason of an actual physical change or by reason of size, the site no longer conforms to criteria established by the board under RSA 79-A:4, I.
\t\t\t(b) Except as provided in subparagraph IV(d), land abutting a site taken by eminent domain or any other governmental taking upon which construction is in progress is used to stockpile earth taken from the construction site. Stockpiled earth may be removed at a later date after written notification to the appropriate local official.
\t5 Land Use Change Tax; Responsible Party; Reference Added. Amend the introductory paragraph of RSA 79-A:7, II to read as follows:
\t\tII. The land use change tax shall be due and payable by the owner, or by the responsible party pursuant to RSA 79-A:7, VI(e) or IV(d), at the time of the change in use to the town or city in which the property is located. If the property is located in an unincorporated town or unorganized place, the tax shall be due and payable by the owner or responsible party at the time of the change in use to the county in which the property is located. Moneys paid to a county from the land use change tax shall be used, in addition to any other funds, to pay for the cost of the services provided in RSA 28:7-a and [7-b] 28:7-b. The land use change tax shall be due and payable according to the following procedure:
\t6 Land Use Change Tax; Responsible Party; Reference Added. Amend RSA 79-A:7, II(e) to read as follows:
\t\t\t(e) All land use change tax assessments levied under this section shall, on the date of the change in use, create a lien upon the lands on account of which they are made and against the owner of record of such land or against the responsible party pursuant to RSA 79-A:7, VI(e) or IV(d). Furthermore, such liens shall continue for a period of 24 months following the date upon which the local assessing officials receive written notice of the change of use from the landowner or his or her agent, or the date the local assessing officials actually discover that the land use change tax is due and payable, and such assessment shall be subject to statutory collection proceedings against real estate as prescribed by RSA 80.
\t7 Effective Date. This act shall take effect July 1, 2016.
\t\t\t\t\t\t\t\t\t\t\t16-2072
\t\t\t\t\t\t\t\t\t\t\t12/22/15
HB 1660-FN-LOCAL- FISCAL NOTE
AN ACT\trelative to eminent domain for gas pipelines and relative to assessment of the land use change tax for eminent domain takings for energy infrastructure.
FISCAL IMPACT:
The New Hampshire Municipal Association, Department of Revenue, Public Utilities Commission, and Board of Tax and Land Appeals state this bill, as introduced, may increase local expenditures by an indeterminable amount, and have an indeterminable fiscal impact on state and local revenue and state expenditures in FY 2017 and each year thereafter. There will be no fiscal impact to county revenue and expenditures.
METHODOLOGY:
The New Hampshire Municipal Association states this bill requires an entity taking land by eminent domain to build energy infrastructure, resulting in increased revenue to that entity, to pay the land use change tax (LUCT) if such land is in current use. Under current law, land taken under eminent domain, RSA 79-A:7, VI (a), is exempt from paying the LUCT. This bill requires the consent of a public body before property may be taken by eminent domain for siting a natural gas pipeline. Further, this bill allows an owner, whose property is taken under eminent domain for siting a high pressure gas pipeline, to require the pipeline company to acquire the entire property. The Association states to the extent an entity takes land by eminent domain to build energy infrastructure, local revenues may increase because the LUCT may have to be paid by the entity.
The Department of Revenue states to the extent land is taken under eminent domain for the construction of a high pressure gas pipeline local expenditures and revenue will increase. Under this bill entities that take land under eminent domain will have to pay the LUCT which is currently not required. This requirement may increase local revenues by an indeterminable amount. The Department states municipalities may experience increased expenditures related to the required legislative meeting within thirty days notice of public property to be acquired by eminent domain and the cost to administer the LUCT when a property qualifies for the LUCT assessment.
The Public Utilities Commission states it is unclear how the requirements of this bill will impact local property taxes. The Commission states this bill may affect the amount of property tax revenue due to local and other governmental entities because of its expansion of current use treatment to undersized parcels following a taking.
The Board of Tax and Land Appeals states this bill may impact the number of condemnation appeals filed with the Public Utilities Commission. The filing fee for each LUCT appeal filed with the Board is $65. The Board cannot estimate the number of such appeals that may result from this bill or the related operational costs of processing the appeals.