HB316 (2017) Detail

Relative to a statewide property tax exemption for commercial and industrial construction.




1Jun2017... 2028-EBA







AN ACT relative to a statewide property tax exemption for commercial and industrial construction.


SPONSORS: Rep. F. McCarthy, Carr. 2; Rep. Cordelli, Carr. 4; Rep. Buco, Carr. 2; Rep. Avellani, Carr. 5; Rep. Crawford, Carr. 4; Rep. Comeau, Carr. 5; Rep. Hill, Merr. 3; Rep. Hynes, Hills. 21; Rep. Emerick, Rock. 21; Sen. Bradley, Dist 3


COMMITTEE: Ways and Means






This bill establishes a local option commercial and industrial construction exemption from property taxation applicable statewide.


- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

1Jun2017... 2028-EBA 17-0435





In the Year of Our Lord Two Thousand Seventeen


AN ACT relative to a statewide property tax exemption for commercial and industrial construction.


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


179:1  Procedure for Adoption; Reference Added.  Amend the introductory paragraph of RSA 72:27-a, I to read as follows:

I.  Any town or city may adopt the provisions of RSA 72:28, RSA 72:28-b, RSA 72:29-a, RSA 72:35, RSA 72:37, RSA 72:37-b, RSA 72:38-b, RSA 72:39-a, RSA 72:62, RSA 72:66, RSA 72:70, [or] RSA 72:76, or RSA 72:82 in the following manner:

179:2  New Subdivision; Commercial and Industrial Construction Exemption Statewide.  Amend RSA 72 by inserting after section 79 the following new subdivision:

Commercial and Industrial Construction Exemption Statewide

72:80  Definitions.

I.  In this subdivision:

(a)  "Commercial uses'' shall include all retail, wholesale, service, and similar uses.

(b)  "Eligible municipality'' shall mean any city or town in the state.  

(c)  "Industrial uses'' shall include all manufacturing, production, assembling, warehousing, or processing of goods or materials for sale or distribution, research and development activities, or processing of waste materials.

II.  An eligible municipality adopting a property tax exemption pursuant to RSA 72:81 may, in lieu of the definitions in this section, adopt by reference the definitions of similar terms as may be contained in that town's or city's zoning ordinances.

72:81  Property Tax Exemption.  An eligible municipality may, by vote of the local legislative body pursuant to RSA 72:82, adopt a new construction property tax exemption for commercial or industrial uses, or both.  The intent of the exemption is to provide incentives to businesses to build, rebuild, modernize, or enlarge within the municipality.  The exemption shall apply only for municipal and local school property taxes assessed by the municipality which shall exclude state education property taxes under RSA 76:3 and county taxes assessed against the municipality under RSA 29:11, and shall be a specified percentage on an annual basis of the increase in assessed value attributable to construction of new structures, and additions, renovations, or improvements to existing structures, but which shall not exceed 50 percent per year.  The exemption may run for a maximum period of 10 years following the new construction.  Once adopted by the local legislative body, the percentage rate and duration of the exemption shall be granted uniformly within that municipality to all projects for which a proper application is filed.

72:82  Procedure for Adoption.  

I.  A municipality desiring to adopt the provisions of RSA 72:81 shall do so in accordance with the procedures set forth in RSA 72:27-a.  The vote shall specify the percentage of new assessed value to be exempted, the number of years duration of the exemption following new construction, and a reference to zoning use category definitions, if applicable.  The exemption shall take effect in the tax year beginning April 1 following its adoption.

II.  A vote adopting RSA 72:81 shall remain in effect for a maximum of 5 tax years; provided, however, that for any application which has already been granted prior to expiration of such 5 tax year period, the exemption shall continue to apply at the rate and for the duration in effect at the time it was granted.

72:83  Application for Exemption.

I.  An owner shall apply for the exemption under RSA 72:81 prior to construction, but not after December 31 before the beginning of the tax year for which the exemption is sought.  In such cases the selectmen or assessors may anticipatorily grant the exemption, subject to adjustment when the actual increase in assessed value becomes known.  If construction is partially complete on April 1 of any year, the exemption for that year shall be based on the increased assessed value attributable to the partial construction, but the duration of the exemption shall be adjusted such that the cumulative amount of exemptions received, based on the construction as completed, is proportional to that received by other eligible properties.

II.  The selectmen or assessors shall notify the applicant of their decision no later than February 28 before the beginning of the tax year for which the exemption is sought.  The decision shall specify the amount of the exemption, that it is effective with the new tax year, and the number of years for which the exemption applies to qualified construction.  The decision of the selectmen or assessors may be appealed in the manner set forth in RSA 72:34-a.

III.  The selectmen or assessors may request such additional or updated information as is necessary to determine eligibility.  If they are satisfied that the applicant has willfully made any false statement, or has refused to provide information after such a request, they may refuse to grant the exemption.

IV.  If the municipality completes a revaluation during the period for which an exemption has been granted, the amount of the exemption shall be adjusted by the difference in equalization ratios applicable in the municipality before and after the revaluation.

179:3  Subdivision Heading Amended; Coos County.  Amend the subdivision heading preceding RSA 72:75 to read as follows:

Commercial and Industrial Construction Exemption in Coos County

179:4  Effective Date.  This act shall take effect 60 days after its passage.

Approved: June 29, 2017

Effective Date: August 28, 2017


HB316 at GenCourtMobile

Action Dates

Date Body Type
Feb. 7, 2017 House Hearing
Feb. 14, 2017 House Exec Session
March 8, 2017 House Floor Vote
March 22, 2017 Senate Hearing
May 18, 2017 Senate Floor Vote

Bill Text Revisions

HB316 Revision: 860 Date: July 3, 2017, 1:54 p.m.
HB316 Revision: 861 Date: June 6, 2017, 9:11 a.m.
HB316 Revision: 862 Date: Jan. 30, 2017, 10:22 a.m.


June 29, 2017: Signed by Governor Sununu 06/29/2017; Chapter 179; Eff. 8/28/2017

June 8, 2017: Enrolled 06/08/2017 HJ 18 P. 9

June 8, 2017: Enrolled (In recess 06/08/2017); SJ 20

June 1, 2017: Enrolled Bill Amendment # 2017-2028e: AA VV 06/01/2017 HJ 17 P. 149

May 31, 2017: Enrolled Bill Amendment # 2017-2028e Adopted, VV, (In recess of 05/31/2017); SJ 19

May 18, 2017: Ought to Pass: RC 12Y-10N, MA; OT3rdg; 05/18/2017; SJ 17

May 18, 2017: Committee Report: Ought to Pass, 05/18/2017; SC 23

March 22, 2017: Hearing: 03/22/2017, Room 100, SH, 09:30 am; SC 15

March 9, 2017: Introduced 03/09/2017 and Referred to Ways and Means; SJ 9

March 9, 2017: Ought to Pass: MA VV 03/09/2017 HJ 10 P. 72

March 8, 2017: Removed from Consent (Rep. Moynihan) 03/08/2017 HJ 9 P. 7

March 8, 2017: Committee Report: Ought to Pass for 03/08/2017 (Vote 19-0; CC)

Feb. 14, 2017: Executive Session: 02/14/2017 01:00 PM LOB 301

Feb. 7, 2017: Public Hearing: 02/07/2017 11:40 AM LOB 301

Jan. 26, 2017: Vacated and Referred to Municipal and County Government (Rep. Major): MA VV 01/26/2017 HJ 4 P. 2

Jan. 5, 2017: Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 8