HB 567-FN - AS INTRODUCED
2017 SESSION
17-0324
10/01
HOUSE BILL 567-FN
AN ACT repealing the exemption for water and air pollution control facilities from local property taxation.
SPONSORS: Rep. Bean, Rock. 21; Rep. Edgar, Rock. 21; Rep. Cushing, Rock. 21; Rep. Janvrin, Rock. 20; Rep. Emerick, Rock. 21
COMMITTEE: Ways and Means
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This bill repeals the exemption from property taxes for the appraised value of water and air pollution control facilities as determined by the department of environmental services.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0324
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT repealing the exemption for water and air pollution control facilities from local property taxation.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. RSA 72:12-a, relative to the property tax exemption for water and air pollution control facilities.
II. RSA 72:12-b, relative to facilities exempted under prior law.
III. RSA 83-F:1, V(a), relative to the exclusion of exempt property from classification as utility property.
2 Effective Date. This act shall take effect April 1, 2017.
17-0324
1/18/17
HB 567-FN- FISCAL NOTE
AS INTRODUCED
AN ACT repealing the exemption for water and air pollution control facilities from local property taxation.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | ||||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 | |
Appropriation | $0 | $0 | $0 | $0 | |
Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | |
Expenditures | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | ||||
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 | |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable | |
METHODOLOGY:
This bill eliminates the requirement for municipalities to annually deduct the value of water and air pollution control equipment from the RSA 72 property tax. The Department of Revenue Administration estimates the elimination of this requirement may decrease local expenditures by a small indeterminable amount. The Department would no longer need to annually deduct the value of water and air pollution control equipment from the RSA 83-F utility property tax which may decrease state expenditures by a small but indeterminable amount. This bill may reallocate the property tax burden in municipalities but should not impact local revenues. The Department estimates this bill will increase state revenues by the following amounts based on the average of the value of exempt property in RSA 83-F over the last two years:
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| FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Estimated State Revenue Increase/ (Decrease) | $3,600,000 | $3,636,000 | $3,672,360 | $3,709,084 |
The New Hampshire Municipal Association states that repealing the tax exemption for pollution control equipment may not necessarily impact municipal revenue or expenditures but it would shift the property tax burden among taxpayers within the affected municipality. The Association states that according to the 2015 Department of Revenue Administration Exemption Report, the total value of property in the State that was reported as exempt was $244,240,704. These properties are located in 10 municipalities. Based on the applicable tax rates, the Association estimates the total amount of property taxes that would have been paid on those properties was $3,870,562. The Association cannot estimate the impact on local revenue and expenditures because affected municipalities would not necessarily realize a net increase in revenue, but the additional taxes paid on the previously exempt property could be used either to support additional appropriations or to reduce local tax rates for all other taxpayers, or a combination of both. Additionally, repealing the exemption would also affect the payment of county taxes by any municipality affected by the exemption, as well as any other municipality in the same county. County taxes are divided among municipalities based upon their equalized valuation. Consequently, municipalities without property subject to the exemption would see a reduction in their share of county tax whereas municipalities with property subject to the exemption would experience a proportional increase to their county tax. Similar effects may occur with respect to school taxes in regional or cooperative school districts, depending upon the funding formula. The Association does not have sufficient information to estimate the dollar impacts on county or school taxes.
The Department of Environmental Services states this bill has no impact on its operating budget.
AGENCIES CONTACTED:
Department of Revenue Administration, New Hampshire Municipal Association, and Department of Environmental Services
| Date | Body | Type |
|---|---|---|
| Feb. 7, 2017 | House | Hearing |
| Feb. 28, 2017 | House | Exec Session |
| March 8, 2017 | House | Floor Vote |
March 8, 2017: Inexpedient to Legislate: MA VV 03/08/2017 HJ 9 P. 49
March 8, 2017: Committee Report: Inexpedient to Legislate for 03/08/2017 (Vote 22-0; CC)
Feb. 28, 2017: Executive Session: 02/28/2017 LOB 202
Feb. 22, 2017: Subcommittee Work Session: 02/22/2017 09:00 AM LOB 202
Feb. 7, 2017: Public Hearing: 02/07/2017 11:00 AM LOB 202
Jan. 5, 2017: Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 19