Bill Details - HB600 (2019)

HB 600-FN - AS AMENDED BY THE HOUSE

 

19Mar2019... 0887h

2019 SESSION

19-0647

10/05

 

HOUSE BILL 600-FN

 

AN ACT adding an exception to the real estate transfer tax for transfers of interest in certain low-income housing.

 

SPONSORS: Rep. Williams, Hills. 4

 

COMMITTEE: Ways and Means

 

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AMENDED ANALYSIS

 

This bill excepts from the real estate transfer tax certain transfers of interest in low-income housing subject to federal restrictions or other requirements where the property remains subject to land use restriction and affordability covenants.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Mar2019... 0887h 19-0647

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT adding an exception to the real estate transfer tax for transfers of interest in certain low-income housing.

 

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

 

1  New Paragraph; Real Estate Transfer Tax; Exception Added; Federally Rent Restricted Properties.  Amend RSA 78-B:2 by inserting after paragraph XXII the following new paragraphs:

XXIII.(a)  To a direct or indirect transfer of an interest in real property, provided that the real estate transfer tax was paid by the buyer or seller, or an affiliate of either, when the real property title was acquired, unless otherwise exempt pursuant to this section, and the transfer is made in connection with the commencement, syndication, development, re-syndication, or conclusion of investment financing related to any of the following:

(1)(A)(i)  A federal low-income housing tax credit project, as defined in Section 42 of the Internal Revenue Code of 1986, as amended; or

(ii)  A project funded with federal grants made to states for low-income housing projects in lieu of low-income housing tax credits under Section 1602 of the American Recovery and Reinvestment Act of 2009;

(B)  Provided that the project under subparagraph (A)(i) or (A)(ii) remains subject to an extended low-income housing commitment in accordance with the provisions of Section 42(h)(6) of the Internal Revenue Code of 1986, as amended.

(2)  A Rental Assistance Demonstration (RAD) public housing conversion under the federal Consolidated and Further Continuing Appropriations Act of 2012, as amended.

(3)   Such other federal, state, or local financing program requiring that the real estate remains subject to land use restriction and rental housing affordability covenants which limit allowable rents charged to individuals or families, consistent with (i) RSA 674:58, IV, pertaining to workforce housing; or (ii) as otherwise required under the applicable federal, state, or local program.

(b)  For purposes of this paragraph, "affiliate" means any entity which controls or is controlled by, or is under common control with, another entity.  For purposes of this definition, an entity controls another entity when the first entity possesses or exercises directly, or indirectly through one or more other affiliates or related entities, the power to direct the management and policies of the other entity, whether through the ownership of voting rights, membership, or the power to appoint members, trustees, or directors, by contract or otherwise.

2  Effective Date.  This act shall take effect July 1, 2019.

 

LBAO

19-0647

12/31/18

 

HB 600-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT adding an exception to the real estate transfer tax for certain transfers by an investment trust.

 

FISCAL IMPACT:      [ X ] State              [    ] 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

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

METHODOLOGY:

This bill adds an exception to the real estate transfer tax for certain transfers by an investment trust if the tax was paid when the real property title was acquired.  The Department states this bill will decrease General Fund and Education Trust Fund revenue by an indeterminable amount.  The Department does not have the data on what percentage of real estate transfer tax revenue is currently attributable to transfers by NH investment trusts or how many transfers of real estate by NH investment trusts may occur in subsequent years or the price or consideration of these transfers to estimate the impact on revenue.

 

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. 21
Jan. 30, 2019 Public Hearing: 01/30/2019 02:00 pm LOB 202
Feb. 20, 2019 Subcommittee Work Session: 02/20/2019 02:30 pm LOB 203
March 6, 2019 Subcommittee Work Session: 03/06/2019 01:00 pm LOB 202
March 13, 2019 Subcommittee Work Session: 03/13/2019 09:55 am LOB 202
March 13, 2019 Executive Session: 03/13/2019 10:00 am LOB 202
March 19, 2019 Committee Report: Ought to Pass with Amendment # 2019-0887h (NT) for 03/19/2019 (Vote 19-0; RC) HC 16 P. 16
Committee Report: Ought to Pass with Amendment # 2019-0887h (NT) (Vote 19-0; RC)
March 19, 2019 Amendment # 2019-0887h (NT): AA VV 03/19/2019
March 19, 2019 Ought to Pass with Amendment 2019-0887h (NT): MA VV 03/19/2019

Action Dates

Date Body Type
Jan. 30, 2019 House Hearing
March 13, 2019 House Exec Session
March 13, 2019 House Exec Session
House Floor Vote
March 19, 2019 House Floor Vote

Bill Text Revisions

HB600 Revision: 4864 Date: Jan. 15, 2019, 3:02 p.m.
HB600 Revision: 5609 Date: March 20, 2019, 10:51 a.m.