Bill Text - HB1473 (2018)

Relative to the timber yield tax.


Revision: April 26, 2018, 10:11 a.m.

HB 1473-FN - VERSION ADOPTED BY BOTH BODIES

 

6Mar2018... 0312h

04/19/2018   1462s

2018 SESSION

18-2421

05/10

 

HOUSE BILL 1473-FN

 

AN ACT relative to the timber yield tax.

 

SPONSORS: Rep. Spang, Straf. 6

 

COMMITTEE: Resources, Recreation and Development

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Permits a municipality to waive the yield tax on land owned by the municipality.  

 

II.  Provides that, unless a bond has been required, a supplemental notice to cut shall not be required when the total volume of the cut is not more than 25 percent of the volume reported in the notice of intent to cut.

 

III.  Requires the municipality to provide public notice of an intent to cut before it is signed by assessing officials.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6Mar2018... 0312h

04/19/2018   1462s 18-2421

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the timber yield tax.

 

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

 

1  New Section; Forest Conservation and Taxation; Waiver of Yield Tax by Municipality in Certain Cases.  Amend RSA 79 by inserting after section 3-a the following new section:

79:3-b  Waiver of Yield Tax by Municipality in Certain Cases.  When timber harvesting is conducted on land owned by, and located in, a municipality, the municipality may waive the yield tax, but shall report the location, species, and volume of wood and timber cut to the commissioner of revenue administration, who shall send one copy of the report to the division of forests and lands of the department of natural and cultural resources.

2  Forest Conservation and Taxation; Notice of Intent to Cut.  Amend RSA 79:10, I(a) and (b) to read as follows:

I.(a)  Every owner, as defined in RSA 79:1, II, shall, prior to commencing each cutting operation and at the beginning of each new tax year into which the cutting operation shall continue, file with the proper assessing officials in the city, town, or unincorporated place where such cutting is to take place a notice of intent to cut provided by the commissioner of revenue administration, stating the owner's name, residence, an estimate of the volume of each species to be cut, and such other information as may be required.  Except when a bond is required pursuant to RSA 79:3-a or RSA 79:10-a, II, a supplemental notice of intent shall not be required when the total volume of the cut exceeds the total volume reported in the intent to cut by less than 25 percent.  When required, the supplemental notice shall be filed in the same manner for any additional volume of wood or timber to be cut in excess of the original estimate and within the tax year.  

(b)  Any intent received by a city, town, or unincorporated place shall, within [30] 15 days, be assigned a number in accordance with the guidelines provided by the commissioner of revenue administration, and be signed by the assessing officials if all conditions for approval have been met.  Public notice shall be posted for any intent to cut received by a municipality before it is signed by assessing officials.  The notice shall be posted in the 2 places where the municipality regularly posts notices of its governing body meetings.  Notwithstanding RSA 91-A, the assessing officials may sign the intent to cut outside a public meeting.  If the conditions for approval have not been met, the assessing officials shall send a letter to the owner or the person responsible for cutting, explaining the reason for the intent not being signed.  The assessing officials shall immediately forward any signed intent to the commissioner of revenue administration and shall also supply a copy to the owner upon request.  Failure of the assessing officials to forward signed intent to cut forms to the department of revenue administration shall constitute a violation.

3  Effective Date.  This act shall take effect September 1, 2018.

 

LBAO

18-2421

Revised 12/13/17

 

HB 1473-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the timber yield tax.

 

FISCAL IMPACT:      [    ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

LOCAL:

FY 2019

FY 2020

FY 2021

FY 2022

   Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill amends RSA 79 relative to Forest Conservation and Taxation, to allow a municipality to waive the Timber Tax when the harvesting is conducted on land owned by the municipality.  It eliminates the existing duty to file a supplemental notice of intent for additional volumes of wood harvested, except in instances when a bond is required for the cutting.  It allows for the town clerk to sign intents to cut as well as the assessing officials and requires notice to assessing officials of any notice of intent signed or refused by the town clerk.

 

The Department of Revenue Administration (DRA) indicates the Timber Tax for timber harvested is 10% of stumpage value.  The DRA does not have data reflecting the percentage of Timber Tax currently collected from harvests on municipal property and cannot estimate what percentage of municipalities will elect to waive the Timber Tax as the bill allows.  However there would be an indeterminable decrease in municipal revenue should any municipality elect to waive the Timber Tax attributable to timber cut on municipal property.  There may be an additional indeterminable decrease in the amount of local revenue, as reports of timber cut may no longer reflect the total actual timber cut due to the elimination of the duty to file a supplemental notice of intent for additional volumes of wood.  There may be an indeterminable increase in local expenditures when municipalities try to verify the actual timber cut without the benefit of the additional information provided on the supplemental intent to cut.  The Department indicates the bill can be administered by the DRA without any additional costs that could not be absorbed within the operating budget.

 

The New Hampshire Municipal Association indicates the bill repeals and reenacts RSA 79:5. The current version of the statute authorizes a municipality to tax standing wood and timber as general property when the municipality is "unreasonably deprived of revenue because of the failure of an owner to cut standing wood or timber when it shall have arrived at the degree of maturity most suitable for its use".  The bill eliminates this current taxing authority and replaces it with the authority to waive the yield tax on timber harvested on and owned by the municipality.  The NHMA does not have data on the extent to which municipalities exercise the taxing authority pursuant to the existing version of RSA 79:5.  However, repeal of that authority would have an indeterminable negative impact on local revenue since the tax incentive to harvest mature timber would be eliminated as would the ability of a municipality to assess the timber as general property when harvesting does occur.

 

AGENCIES CONTACTED:

Department of Revenue Administration and New Hampshire Municipal Association