SB 121-FN-LOCAL - AS AMENDED BY THE SENATE
02/04/2016 0408s
2015 SESSION
\t15-0895
\t09/01
SENATE BILL\t\t121-FN-LOCAL
AN ACT\trelative to exceptions from the land use change tax for removal of certain materials.
SPONSORS:\tSen. Daniels, Dist 11; Rep. Verschueren, Straf 13
COMMITTEE:\tWays and Means
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AMENDED ANALYSIS
\tThis bill clarifies that the removal of topsoil, gravel, or minerals which does not change the underlying, qualifying use of the land shall not be considered changed for the purpose of the land use change tax.
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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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/04/2016 0408s\t15-0895
\t09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT\trelative to exceptions from the land use change tax for removal of certain materials.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Current Use; Land Use Change Tax; Exception Added. Amend RSA 79-A:7, IV(b) to read as follows:
\t\t\t(b) Topsoil, gravel or minerals are excavated or dug from the site; except:
\t\t\t\t(1) Removal of topsoil in the process of harvesting a sod farm crop in amounts which will not deplete the topsoil; and
\t\t\t\t(2) Removal of gravel and other materials for construction and maintenance of roads and lands for agricultural and forestry purposes within the qualifying property of the owner or, with the approval of local authorities, to other qualifying property of the owner. Sale of excavated materials shall constitute a land use change of the property from which the material was excavated. The site shall be reclaimed when the construction or maintenance project is completed to mitigate environmental and aesthetic effects of the excavation. Both project completion time and acceptability of reclamation shall be determined by local authorities. The owner shall keep local officials informed in writing of plans to remove and use of soil material from qualifying lands for purposes of this subparagraph and to assure conformance with any local ordinances, as well as plans for reclamation of the site. Fully reclaimed land shall be eligible for current use assessment if it meets open space criteria established by the board under RSA 79-A:4, I, whether or not such land was under current use assessment prior to the excavation[.]; and
\t\t\t\t(3) Removal of topsoil, gravel, or minerals which does not change the underlying, qualifying use of the land.
\t2 Effective Date. This act shall take effect 60 days after its passage.
\t\t\t\t\t\t\t\t\t\t\t\t\tLBAO
\t\t\t\t\t\t\t\t\t\t\t15-0895
\t\t\t\t\t\t\t\t\t\t\t01/30/15
SB 121-FN-LOCAL - FISCAL NOTE
AN ACT\trelative to definitions used for purposes of current use taxation.
FISCAL IMPACT:
The New Hampshire Municipal Association states this bill, as introduced, will increase local expenditures by an indeterminable amount in FY 2015 and each year thereafter. There will be no impact on state and county expenditures, or state, county, and local revenue.
METHODOLOGY:
The New Hampshire Municipal Association states this bill inserts new definitions for the purposes of current use taxation. In particular, the bill changes the definition of “excavated” earth exempt under the land use change tax to mean earth extracted up to its “natural angle of repose.” Such an exemption may reduce the amount of the land use change tax that would otherwise be assessed, but this change should have no impact on local revenue, as the change will merely shift the tax burden among local taxpayers. The bill will, however, result in an indeterminable increase in local expenditures, as it requires that the determination of the “angle of repose” be made by a licensed civil engineer. The Association states this requirement will result in additional costs to administer the current use law and to assess a land use change tax involving excavated properties.
The Department of Revenue Administration states this bill will have no fiscal impact.