HB1722 (2018) Detail

Relative to the property tax exemption for chartered public school property, including leased property.


HB 1722-FN-LOCAL - AS INTRODUCED

 

 

2018 SESSION

18-2623

10/04

 

HOUSE BILL 1722-FN-LOCAL

 

AN ACT relative to the property tax exemption for chartered public school property, including leased property.

 

SPONSORS: Rep. Hoell, Merr. 23; Rep. Itse, Rock. 10

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill requires the annual refund of the pro rata share of property taxes paid by a chartered public school pursuant to a lease of property from a non-exempt owner.  The bill also repeals the local option to reduce the taxes attributable to a chartered public school facility renting or leasing its building or facilities from a property owner which is not exempt from property taxes.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2623

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the property tax exemption for chartered public school property, including leased property.

 

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

 

1  New Paragraph; Property Taxation; Exemption; Chartered Public School Refunds.  Amend RSA 72:23 by inserting after paragraph V-a the following new paragraph:

V-b.  A chartered public school, established and operating under RSA 194-B and exempt from property taxation under this section, leasing property from an owner which is not exempt from property taxation under this chapter shall be entitled to a refund of the amount of a lease payment attributable to duly assessed personal and real estate taxes paid by the lessor.  Such refund shall be made annually by the governing body of the taxing district upon application by the board of trustees of the chartered public school, provided that the chartered public school is liable under the lease for the pro rata share of lessor’s property taxes and the lessor has paid the amount of property taxes due.  The refund of the pro rata share of tax paid shall be made to the board of trustees and used for school purposes.

2  Appraisal of Taxable Property.  Amend RSA 75:1 to read as follows:

75:1  How Appraised.  The selectmen shall appraise open space land pursuant to RSA 79-A:5, open space land with conservation restrictions pursuant to RSA 79-B:3, land with discretionary easements pursuant to RSA 79-C:7, residences on commercial or industrial zoned land pursuant to RSA 75:11, earth and excavations pursuant to RSA 72-B, land classified as land under qualifying farm structures pursuant to RSA 79-F, buildings and land appraised under RSA 79-G as qualifying historic buildings, [qualifying chartered public school property appraised under RSA 79-H,] residential rental property subject to a housing covenant under the low-income housing tax credit program pursuant to RSA 75:1-a, renewable generation facility property subject to a voluntary payment in lieu of taxes agreement under RSA 72:74 as determined under said agreement, telecommunications poles and conduits pursuant to RSA 72:8-c, and all other taxable property at its market value.  Market value means the property's full and true value as the same would be appraised in payment of a just debt due from a solvent debtor.  The selectmen shall receive and consider all evidence that may be submitted to them relative to the value of property, the value of which cannot be determined by personal examination.

3  Repeal.  The following are repealed:

I.  RSA 79-H, relative to taxation of certain chartered public school facilities.

II.  RSA 74:4, VIII, relative to taxpayer inventory blanks for chartered public schools.

4  Effective Date.  This act shall take effect January 1, 2019.

 

LBAO

18-2623

11/15/17

 

HB 1722-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the property tax exemption for chartered public school property, including leased property.

 

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

 

 

 

Estimated Increase / (Decrease)

LOCAL:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

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

 

METHODOLOGY:

This bill allows for a refund of the amount of a lease payment attributable to duly assessed personal and real estate taxes paid by an exempt lessor chartered public school leasing property  from a non-exempt property owner. Such refund shall be made annually by the governing body of the taxing district upon application by the board of trustees of the chartered public school and payment made to the board of trustees and used for school purposes.  The bill also repeals the local option to create a special valuation for property owners who lease property to qualifying chartered public schools.  The New Hampshire Municipal Association indicates payment from municipal funds is indeterminable as it has no data on charter schools leasing property from non-exempt owners or the amount of lease payments attributable to property taxes.  There should be no impact on municipal revenues.  The Department of Revenue Administration states it does not have sufficient information to calculate possible increased cost to municipalities to administer the repeal of the local option special valuation and the processing of tax refund payments.

 

AGENCIES CONTACTED:

New Hampshire Municipal Association and Department of Revenue Administration

 

Links

HB1722 at GenCourtMobile

Action Dates

Date Body Type
Jan. 18, 2018 House Hearing
Feb. 21, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote

Bill Text Revisions

HB1722 Revision: 2298 Date: Nov. 16, 2017, 12:37 p.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Ways and Means HJ 1 P. 21
Jan. 18, 2018 Public Hearing: 01/18/2018 10:00 AM LOB 202
Jan. 31, 2018 Subcommittee Work Session: 01/31/2018 11:00 AM LOB 202
Feb. 6, 2018 Full Committee Work Session: 02/06/2018 10:30 AM LOB 202
Feb. 13, 2018 Subcommittee Work Session: 02/13/2018 09:15 AM LOB 104
Feb. 20, 2018 Subcommittee Work Session: 02/20/2018 10:50 AM LOB 202
Feb. 21, 2018 Executive Session: 02/21/2018 LOB 202
Committee Report: Inexpedient to Legislate (Vote 21-0; CC)
March 6, 2018 Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 21-0; CC) HC 9 P. 35
March 6, 2018 Inexpedient to Legislate: MA VV 03/06/2018 HJ 6 P. 61