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1 Short Title. This act may be known and cited as the "Municipal Property Tax Compensation Act".
2 Statement of Purpose. The general court finds that this act shall help ensure that municipalities are compensated for property tax revenue lost due to the tax-exempt status of nonprofit residential facilities receiving funding from the department of health and human services.
3 New Section; Public Health; Department of Health and Human Services; Compensation for Nonprofit Residential Facilities. Amend RSA 126-A by inserting after section 24 the following new section:
126-A:24-a Compensation for Nonprofit Residential Facilities.
I. In this section:
(a) "Nonprofit residential facility" means a residential care facility, nursing home, shelter, or other residential entity operated by a nonprofit organization exempt from property taxation under RSA 72:23, which receives funding from the department.
(b) "Lost property tax revenue" means the amount of property tax revenue a municipality would have collected if the property owned or leased by a nonprofit residential facility were taxable at the municipality's current tax rate and assessed value.
(c) "Department" means the department of health and human services.
II.(a) Prior to disbursing funds to a nonprofit residential facility, the department shall calculate and disburse to the affected municipality an amount equal to the lost property tax revenue attributable to the facility's tax-exempt status.
(b) The compensation shall be based on the assessed value of the property, as determined by the municipal assessing officials under RSA 75, and the municipality's property tax rate for the fiscal year in which the funds are disbursed.
III.(a) The nonprofit residential facility shall submit to the department, as part of its funding application, a statement from the municipal assessing officials verifying the assessed value of the property and compliance with all local zoning laws.
(b) The department shall verify the calculation of lost property tax revenue with the municipality before disbursing compensation.
(c) Compensation shall be paid to the municipality no later than 30 days prior to the disbursement of funds to the nonprofit residential facility.
(d) The department may request additional documentation from the nonprofit residential facility or the municipality to ensure accurate calculation of the compensation amount.
IV. The department shall use existing appropriations or seek additional appropriations as necessary to comply with this section. No funds shall be disbursed to a nonprofit residential facility unless the required municipal compensation has been paid.
V. The department shall submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the fiscal committee of the general court, detailing the total amount of compensation paid to municipalities under this section, the nonprofit residential facilities involved, and the impact on departmental funding.
VI. No community living facility certified under this section shall be exempt from state or local zoning ordinances, or exempt from state or local safety ordinances.
4 Effective Date. This act shall take effect January 1, 2027.
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1 Short Title. This act may be known and cited as the "Municipal Property Tax Compensation Act".
2 Statement of Purpose. The general court finds that this act shall help ensure that municipalities are compensated for property tax revenue lost due to the tax-exempt status of nonprofit residential facilities receiving funding from the department of health and human services.
3 New Section; Public Health; Department of Health and Human Services; Compensation for Nonprofit Residential Facilities. Amend RSA 126-A by inserting after section 24 the following new section:
126-A:24-a Compensation for Nonprofit Residential Facilities.
I. In this section:
(a) "Nonprofit residential facility" means a residential care facility, nursing home, shelter, or other residential entity operated by a nonprofit organization exempt from property taxation under RSA 72:23, which receives funding from the department.
(b) "Lost property tax revenue" means the amount of property tax revenue a municipality would have collected if the property owned or leased by a nonprofit residential facility were taxable at the municipality's current tax rate and assessed value.
(c) "Department" means the department of health and human services.
II.(a) Prior to disbursing funds to a nonprofit residential facility, the department shall calculate and disburse to the affected municipality an amount equal to the lost property tax revenue attributable to the facility's tax-exempt status.
(b) The compensation shall be based on the assessed value of the property, as determined by the municipal assessing officials under RSA 75, and the municipality's property tax rate for the fiscal year in which the funds are disbursed.
III.(a) The nonprofit residential facility shall submit to the department, as part of its funding application, a statement from the municipal assessing officials verifying the assessed value of the property and compliance with all local zoning laws.
(b) The department shall verify the calculation of lost property tax revenue with the municipality before disbursing compensation.
(c) Compensation shall be paid to the municipality no later than 30 days prior to the disbursement of funds to the nonprofit residential facility.
(d) The department may request additional documentation from the nonprofit residential facility or the municipality to ensure accurate calculation of the compensation amount.
IV. The department shall use existing appropriations or seek additional appropriations as necessary to comply with this section. No funds shall be disbursed to a nonprofit residential facility unless the required municipal compensation has been paid.
V. The department shall submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the fiscal committee of the general court, detailing the total amount of compensation paid to municipalities under this section, the nonprofit residential facilities involved, and the impact on departmental funding.
VI. No community living facility certified under this section shall be exempt from state or local zoning ordinances, or exempt from state or local safety ordinances.
4 Effective Date. This act shall take effect January 1, 2027.