HB1478 (2018) Detail

Reducing the rate on the tax on transfer of real property.


HB 1478-FN-A - AS INTRODUCED

 

 

2018 SESSION

18-2444

10/03

 

HOUSE BILL 1478-FN-A

 

AN ACT reducing the rate on the tax on transfer of real property.

 

SPONSORS: Rep. Chirichiello, Rock. 6; Rep. Fromuth, Hills. 7; Rep. Horn, Merr. 2; Rep. Steven Smith, Sull. 11; Rep. M. Moffett, Merr. 9; Rep. Baldasaro, Rock. 5; Rep. Morrison, Rock. 9; Rep. Testerman, Merr. 2; Rep. Pearl, Merr. 26; Rep. Torosian, Rock. 14

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill reduces the rate of the tax paid on a transfer of real property.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2444

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT reducing the rate on the tax on transfer of real property.

 

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

 

1  Tax on Transfers of Real Property; Rate Reduced.  Amend RSA 78-B:1, I(b) to read as follows:

(b)  The rate of the tax is [$.75] $.65 per $100, or fractional part thereof, of the price or consideration for such sale, grant, or transfer; except that where the price or consideration is $4,000 or less there shall be a minimum tax of $20.  The tax imposed shall be computed to the nearest whole dollar.

2  Effective Date.  This act shall take effect July 1, 2018.

 

LBAO

18-2444

10/30/17

 

HB 1478-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT reducing the rate on the tax on transfer of real property.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

($18,534,435)

($18,534,435)

($18,534,435)

($18,534,435)

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

($762,848)

($762,848)

($762,848)

($762,848)

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill reduces the tax on transfers of real property by reducing the rate of the Real Estate Transfer Tax from $0.75 per $100 to $0.65 per $100.  Using FY 2017 data, the sales price calculated from Real Estate Transfer Tax transactions occurring at $1.50 per $100 ($0.75 per $100 for purchaser and $0.75 per $100 for seller) totaled $9,648,648,142 for Real Estate Transfer Tax paid of $144,729,709 ($1,695,563 of this amount was holding company activity).  Applying the proposed rate of $1.30 per $100 ($0.65 per $100 for purchaser and $0.65 per $100 for seller) to the FY 2017 transactions would have resulted in $125,432,426 ($1,695,563 of this amount was holding company activity) of Real Estate Transfer Tax paid, a decrease of $19,297,283 ($226,075 of this amount was holding company activity).  Counties collect a 4 percent commission rate on Real Estate Transfer Tax paid.  The estimated loss of county revenue from this bill would be $762,848 (($19,297,283 less $226,075 of holding company activity) * 4 percent) and the estimated decrease in General Fund and Education Trust Fund revenue would equal $18,534,435 ($19,297,283 - $762,848).

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

 

Links


Date Body Type
Jan. 16, 2018 House Hearing
Jan. 24, 2018 House Exec Session
House Floor Vote
Feb. 22, 2018 House Floor Vote

Bill Text Revisions

HB1478 Revision: 2072 Date: Nov. 3, 2017, 11:55 a.m.

Docket


Feb. 22, 2018: Inexpedient to Legislate: MA VV 02/22/2018 HJ 5 P. 16


Feb. 22, 2018: Committee Report: Inexpedient to Legislate for 02/22/2018 (Vote 23-0; CC) HC 7 P. 13


: Committee Report: Inexpedient to Legislate (Vote 23-0; CC)


Jan. 24, 2018: Executive Session: 01/24/2018 LOB 202


Jan. 24, 2018: Full Committee Work Session: 01/24/2018 11:00 AM LOB 202


Jan. 16, 2018: Public Hearing: 01/16/2018 10:15 AM LOB 202


Jan. 3, 2018: Introduced 01/03/2018 and referred to Ways and Means HJ 1 P. 12