Bill Text - HB600 (2019)

Revision: Jan. 15, 2019, 3:02 p.m.

HB 600-FN - AS INTRODUCED

 

 

2019 SESSION

19-0647

10/05

 

HOUSE BILL 600-FN

 

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

 

SPONSORS: Rep. Williams, Hills. 4

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill excepts from the real estate transfer tax certain transfers of interest in property by a New Hampshire investment trust.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0647

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 certain transfers by an investment trust.

 

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

 

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

XXIII.  To a direct or indirect transfer of a fee interest in real property to or from an investment trust under RSA 293-B:2 provided that the real estate transfer tax was paid when the real property title was acquired, and:

(a)  Such fee or equitable interests are conveyed in exchange for capital, or acquired by the person who is the recipient of financing collateralize by fee or equitable interests; or

(b)  The purpose for the transfer is made in connection with the commencement, syndication, development, re-syndication, or conclusion of investment financing related to a federal Low-Income Housing Tax Credit (LIHTC) project, as defined in Section 42 of the Internal Revenue Code of 1986, as amended, and 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  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