HB1131 (2020) Detail

Repealing the timber tax.


HB 1131-FN-LOCAL - AS INTRODUCED

 

 

2020 SESSION

20-2111

05/10

 

HOUSE BILL 1131-FN-LOCAL

 

AN ACT repealing the timber tax.

 

SPONSORS: Rep. Marple, Merr. 24; Rep. Burt, Hills. 39; Rep. O'Day, Ches. 11; Rep. Pitre, Straf. 2; Rep. Weyler, Rock. 13

 

COMMITTEE: Municipal and County Government

 

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ANALYSIS

 

This bill repeals RSA 79, relative to the timber tax.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2111

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT repealing the timber tax.

 

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

 

1  Statement of Purpose.  The general court finds that the timber tax is in violation of the supremacy of the United States Constitution, Article I, section 8, which provides "all duties, imposts and excises shall be uniform throughout the United States" and Article VI, which provides "[t]his Constitution, and the laws of the United States which shall be made in pursuance thereof...shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding."  Accordingly, the general court seeks to repeal the state timber tax in RSA 79.

2  Repeal.  RSA 79, relative to the timber tax, is repealed.

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

20-2111

10/29/19

 

HB 1131-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT repealing the timber tax.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

($3,500,000)

($3,500,000)

($3,500,000)

($3,500,000)

   Expenditures

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

 

METHODOLOGY:

This bill would repeal the Timber Yield Tax under RSA 79, a tax on 10% on the stumpage value of wood or timber at the time of cutting, which is assessed by local officials.  The Timber Tax is administered by the Department of Revenue (DRA).

 

The DRA is not able to predict the total municipal revenue from the Timber Tax in future years, but reports $3,810,723 was generated in Tax Year 2016 and $3,447,571 was generated in Tax Year 2017 (Tax Year runs April 1-March 31).  All of the revenue is retained by municipalities.  The DRA indicates there would be no impact on state revenues but state and local expenditures may decrease by an indeterminable amount in regard to administering the tax.  

 

The New Hampshire Municipal Association reports the Timber Yield Tax revenue generated from 2015-2017 averaged approximately $3.5 million per year (based on municipal fiscal year reporting).

 

The Judicial Branch indicates RSA 79, which would be repealed, includes a violation level offense if one does not comply with a cease and desist order issued against a timber operation not in compliance.  The violations may be enjoined by the superior court.  The Branch does not have information on how many fewer violation offenses would be brought in the district division of the circuit court or how many fewer actions for injunctive relief to enjoin violations would be filed in the superior court.  The Branch has provided the estimate average cost information for  processing both.  The estimated average cost to the Branch to process a violation offense in the district division of the circuit court is $52 for FY 2021 and $54 for FY 2022.  The injunction in the superior court would be classified as complex equity case with an estimated average cost of  $788 in FY 2021 and $794 in FY 2022.  These amounts do not consider the cost of any appeals that may be taken following trial. It should also be noted that average case cost estimates for FY 2021 and FY 2022 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.

 

The Judicial Council indicates this bill would not impact Judicial Council expenditures.

 

AGENCIES CONTACTED:

Department of Revenue Administration, New Hampshire Municipal Association, Judicial Branch, and Judicial Council

 

Links

HB1131 at GenCourtMobile
HB1131 Discussion

Action Dates

Date Body Type

Bill Text Revisions

HB1131 Revision: 6764 Date: Dec. 2, 2019, 10:10 a.m.

Docket

Date Status
Jan. 8, 2020 To Be Introduced 01/08/2020 and referred to Municipal and County Government