HB486 (2021) Detail

Relative to eligibility for the low and moderate income homeowners property tax relief.


HB 486-FN - AS INTRODUCED

 

 

2021 SESSION

21-0602

10/05

 

HOUSE BILL 486-FN

 

AN ACT relative to eligibility for the low and moderate income homeowners property tax relief.

 

SPONSORS: Rep. Fellows, Graf. 8; Rep. Walz, Merr. 23; Rep. Adjutant, Graf. 17; Rep. Gordon, Graf. 9

 

COMMITTEE: Municipal and County Government

 

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ANALYSIS

 

This bill increases the income and property value criteria for claimants of the low and moderate income homeowners property tax relief against statewide education 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0602

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to eligibility for the low and moderate income homeowners property tax relief.

 

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

 

1  Low and Moderate Income Homeowners Property Tax Relief; Statewide Education Property Tax; Income and Property Criteria.  Amend RSA 198:57, III and IV to read as follows:

III.  An eligible tax relief claimant is a person who:

(a)  Owns a homestead or interest in a homestead subject to the education tax;

(b)  Resided in such homestead on April 1 of the year for which the claim is made, except such persons as are on active duty in the United States armed forces or are temporarily away from such homestead but maintain the homestead as a primary domicile; and

(c)  Realizes total household income of:

(1)  [$20,000] $37,000 or less if a single person;

(2)  [$40,000] $47,000 or less if a married person or head of a New Hampshire household.

IV.  All or a portion of an eligible tax relief claimant's state education property taxes, RSA 76:3, shall be rebated as follows:

(a)  Multiply the total local assessed value of the claimant's property by the percentage of such property that qualifies as the claimant's homestead;

(b)  Multiply [$100,000] $220,000 by the most current local equalization ratio as determined by the department of revenue administration;

(c)  Multiply the lesser of the amount determined in subparagraph (a) or (b) by the education tax rate as shown on the tax bill under RSA 76:11-a;

(d)  Multiply the product of the calculation in subparagraph (c) by the following percentage as applicable to determine the amount of tax relief available to the claimant:

(1)  If a single person and total household income is:

(A)  less than [$12,500] $23,100, 100 percent;

(B)  [$12,500] $23,100 but less than [$15,000] $27,800, 60 percent;

(C)  [$15,000] $27,800 but less than [$17,500] 32,400, 40 percent; or

(D)  [$17,500] $32,400 but less tan or equal to [$20,000] $37,000, 20 percent.

(2)  If a head of a New Hampshire household or a married person and total household income is:

(A)  less than [$25,000] $29,400, 100 percent;

(B)  [$25,000] $29,400 but less than [$30,000] $35,300, 60 percent;

(C)  [$30,000] $35,300 but less than [$35,000] $41,100, 40 percent; or

(D)  [$35,000] $41,100 but less than or equal to [$40,000] $47,000, 20 percent.

(e)  The amount determined by subparagraph (d) is the allowable tax relief in any year.

2  Application.  RSA 198:57 as amended by section 1 of this act shall apply to statewide education property taxes assessed on and after April 1, 2021.

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

 

LBA

21-0602

12/23/20

 

HB 486-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to eligibility for the low and moderate income homeowners property tax relief.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2021

FY 2022

FY 2023

FY 2024

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

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

 

METHODOLOGY:

This bill makes the following modifications to the Low and Moderate Income Homeowner Property Tax Relief program:

1) increases the household income amounts for both single and married persons eligible for the program;

2) increases the claimant's minimum homestead amount multiplied by the applicable local equalization ratio from $100,000 to $282,000; and

3) increases the single person and total household income amounts used to determine the percentage of the tax relief rebate to be made available to the claimant.

 

The Department of Revenue Administration is unable to determine the impact this bill will have on State expenditures due to not possessing all the necessary information.  The Department anticipates the increase in the income thresholds and maximum qualifying homestead values will result in more claimants seeking tax relief and an increase in relief amounts under this bill.  Therefore, an increase in rebates being paid from the education trust fund will occur by an indeterminable amount. This indeterminable increase in state expenditures would require additional appropriations to pay these additional claims beginning in FY22.  

 

The Department of Revenue Administration was appropriated $1,750,000 in FY20 and $1,750,000 in FY21 for the Low and Moderate Income Homeowner Property Tax Relief program

It is assumed this bill will be effective July 1, 2021.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

HB486 at GenCourtMobile
HB486 Discussion

Action Dates

Date Body Type
March 1, 2021 House Hearing

Bill Text Revisions

HB486 Revision: 31804 Date: Jan. 10, 2021, 2:04 p.m.

Docket


March 1, 2021: Public Hearing: 03/01/2021 11:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/97119253057 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Jan. 6, 2021: Introduced (in recess of) 01/06/2021 and referred to Municipal and County Government HJ 2 P. 50