Bill Details - HB530 (2019)

HB 530-FN-A - AS INTRODUCED

 

 

2019 SESSION

19-0324

10/05

 

HOUSE BILL 530-FN-A

 

AN ACT reducing the rate of the real estate transfer tax for a 2-year period.

 

SPONSORS: Rep. Chirichiello, Rock. 6; Rep. Morrison, Rock. 9; Rep. Potucek, Rock. 6; Rep. Green, Rock. 13

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill reduces the rate of the tax paid on a transfer of real property for 2 years.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0324

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT reducing the rate of the real estate transfer tax for a 2-year period.

 

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] $.70 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  2021; Tax on Transfers of Real Property; Rate Increased.  Amend RSA 78-B:1, I(b) to read as follows:

(b)  The rate of the tax is [$.70] $.75 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.

3  Effective Date.

I.  Section 2 of this act shall take effect July 1, 2021.

II  The remainder of this act shall take effect July 1, 2019.

 

LBAO

19-0324

1/11/19

 

HB 530-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT reducing the rate of the real estate transfer tax for a 2-year period.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Decrease

Indeterminable Decrease

$0

$0

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

Indeterminable Decrease

Indeterminable Decrease

$0

$0

   Expenditures

Indeterminable

Indeterminable

Indeterminable

$0

 

METHODOLOGY:

This bill reduces the rate of the Real Estate Transfer Tax from $0.75 per $100 to $0.70 per $100 effective July 1, 2019 and increases it back to $0.75 per $100 effective July 1, 2021.  This rate applies both to the seller and buyer.  The Real Estate Transfer Tax is collected by the county and remitted monthly to the Department of Revenue Administration.  The county retains a 4%  commission.  

 

The Department is not able to provide the exact decrease in General Fund and Education Trust Fund revenue as it does not have the means to estimate future price or consideration for transfers subject to the tax.  The Department is able to provide an estimates for this bill using FY 2018 data.  The total price or consideration for transfers subject to the Real Estate Transfer Tax in FY 2018 was $10,131,627,533 and the amount of tax paid was $151,974,413, which includes $2,588,666 from holding company activity.  When the new rate of $1.40 ($0.70 for seller and $0.70 for buyer) is applied to the FY 2018 base amount of $10,131,627,533, Real Estate Transfer Tax revenue would have been $141,842,785, including $2,416,088 from holding company activity.  This results in a revenue decrease of $10,131,628 ($151,974,413 - $141,842,785), including $172,578 ($2,588,666 - $2,416,088) from holding company activity.  To estimate the impact on county revenues, the $172,578 from holding activity is removed from the $10,131,628 as this is reported directly to the Department, leaving an amount of $9,958,750 which the 4% commission was applied.  This results in an estimated county revenue decrease of $398,362 in FY 2020 and FY 2021.  General Fund and Education Trust Fund revenue would decrease by $9,733,266 in FY 2020 and FY 2021.

 

The Department would need to update the Real Estate Transfer Tax forms and its information management system.  The Department anticipates it can absorb any additional costs associated with this bill in its budget.  The Department states the counties would need to update systems to reflect the new rate and then a conversion back.  The Department assumes this will result in indeterminable expenditures for the counties.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Ways and Means HJ 3 P. 18
Jan. 23, 2019 Public Hearing: 01/23/2019 01:00 pm LOB 202
Feb. 7, 2019 Executive Session: 02/07/2019 02:00 pm LOB 202
Committee Report: Inexpedient to Legislate (Vote 20-0; CC)
Feb. 27, 2019 Committee Report: Inexpedient to Legislate for 02/27/2019 (Vote 20-0; CC) HC 13 P. 14
Feb. 27, 2019 Inexpedient to Legislate: MA VV 02/27/2019

Action Dates

Date Body Type
Jan. 23, 2019 House Hearing
Feb. 7, 2019 House Exec Session
House Floor Vote
Feb. 27, 2019 House Floor Vote

Bill Text Revisions

HB530 Revision: 4818 Date: Jan. 15, 2019, 12:18 p.m.