Revision: Dec. 17, 2025, 8:45 a.m.
HB 1763-FN - AS INTRODUCED
2026 SESSION
26-2781
07/09
HOUSE BILL 1763-FN
SPONSORS: Rep. Drago, Rock. 4; Rep. Bennett, Rock. 4; Rep. Ford, Rock. 3; Rep. Nadeau, Rock. 4; Rep. Mazur, Hills. 44; Rep. Perez, Rock. 16; Rep. Bogert, Belk. 5; Rep. Barbour, Hills. 35
COMMITTEE: Health, Human Services and Elderly Affairs
-----------------------------------------------------------------
ANALYSIS
This bill requires the department of health and human services to disburse funds to municipalities in an amount equal to the sum of the assessed property values of nonprofit residential facilities in those municipalities.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2781
07/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
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.
26-2781
12/15/25
HB 1763-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
|
| |||||
Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | $11.5 million + | $23 million + | $23 million + | ||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | $0 | $0 | $0 | $0 | ||
Local Revenue | $0 | $11.5 million + | $23 million + | $23 million + | ||
Local Expenditures | $0 | $0 | $0 | $0 | ||
METHODOLOGY:
This bill requires the Department of Health and Human Services to disburse to affected municipalities an amount equal to the lost property tax revenues attributable to the tax exempt status of each non-profit residential facility in the state. A "non-profit residential facility” is defined as a residential care facility, nursing home, shelter, or other residential entity operated by a nonprofit organization that receives funds from the department. The compensation is to be based on the assessed value of the property, as determined by the municipality and the municipality’s property tax rate for the applicable fiscal year. The bill prohibits the Department from paying funds to non-profit residential facilties until the affected municipality has been paid.
The Department states that it is unable to determine the non-profit status of all possible organizations contemplated by the broad definition of “non-profit residential facility.” The Department also was not able to survey all affected facilities to determine property tax revenue lost. To determine a rough estimate of property tax revenue lost, the Department selected an example of each type of affected facility, determined the example facility’s tax liability based on the applicable tax rate, and multiplied the example facility’s tax liability by the number of facilities of the applicable type that the Department expects to have a non-profit status.
Calculation of the tax liability of example facilities is below. The Department was not readily able to secure the assessed value of a domestic violence shelter because domestic violence shelter locations are generally confidential. The Department assumes the tax liability of domestic violence shelters is similar to transitional homeless shelters.
Type of Facility | Example Facility | Town | Assessed Value | Tax Rate per $1,000 | Total Tax |
Nursing Facilities | Courville | Nashua | $ 11,450,000 | $ 15.90 | $ 182,055 |
Residential Care Facilities | Bedford Falls | Bedford | $ 11,297,500 | $ 16.49 | $ 186,296 |
Community Residences | Emerald House | Keene | $ 406,900 | $ 33.07 | $ 13,456 |
Transitional Homeless Shelter | Cross Roads House | Portsmouth | $ 812,700 | $ 11.18 | $ 9,086 |
Behavioral Residential Treatment | Harbor Care | Claremont | $ 371,500 | $ 29.26 | $ 10,870 |
SUD Recovery House | Granite Sober Living | Derry | $ 1,200,000 | $ 18.69 | $ 22,428 |
Children's Residential Treatment | Dover Children's Home | Dover | $ 2,300,000 | $ 18.70 | $ 43,010 |
The Department calculates the total cost for all facilities as follows:
Type of Facility | Number of Facilities | ~Number of Non Profits | Tax of Example Facility | Total Cost |
Nursing Facilities | 79 | 47 | $ 182,000 | $ 8,554,000 |
Residential Care Facilities | 138 | 55 | $ 186,000 | $10,230,000 |
Community Residences* | 70 | 105 | $ 13,500 | $ 1,417,500 |
Transitional Homeless Shelter | 35 | 35 | $ 9,000 | $ 315,000 |
Behavioral Residential Treatment* | 27 | 41 | $ 10,900 | $ 446,900 |
SUD Recovery House* | 40 | 42 | $ 22,400 | $ 940,800 |
Children's Residential Treatment* | 20 | 30 | $ 43,000 | $ 1,290,000 |
DV Shelter | 11 | 11 | $ 9,000 | $ 99,000 |
Total |
|
|
| $23,293,200 |
For facilities with an asterisk, the Department notes that number of non-profit providers was adjusted upwards to account for providers that have multiple facilities under same license.
In addition to the costs above, the Department anticipates needing one full-time and one part-time Business Administrator I to support operations required by the bill. Total costs of the two positions are estimated at $146,000 for FY 28 and $153,000 for FY 29.
As the bill has an effective date of January 1, 2027, the Department assumes the cost in FY27 will be half of those for a full fiscal year.
AGENCIES CONTACTED:
Department of Health and Human Services and New Hampshire Municipal Association