Liam O'Brien

Dear Chair and Members of the House Ways and Means Committee, I am writing to respectfully oppress HB 1707, currently before your committee, which would create a new Unoccupied Housing Tax on properties that are unoccupied for at least six months of the year or used as short-term rentals for at least six months of the year. While I understand and share the goal of expanding affordable housing opportunities in New Hampshire, the Unoccupied Housing Tax as drafted would have significant negative impacts on responsible homeowners who depend on their second homes as rental properties: 1. Penalizes Responsible Property Owners Many Granite Staters invest in second homes with the intention of renting them to visitors — especially during peak seasons. This rental income helps cover mortgage costs, property taxes, insurance, and maintenance. By imposing a full additional tax simply because these properties are not owner-occupied year-round, the bill would unfairly penalize homeowners for providing legal, regulated short-term rental housing that supports local tourism and small businesses. 2. Hurts Local Economies and Tourism Short-term rentals create economic activity in our towns, especially in regions reliant on tourism (ski areas, lakes regions, White Mountains). Visitors staying in short-term rentals spend money at local restaurants, shops, fuel stations, and attractions. An added tax could reduce the supply of available rentals, thereby raising costs for visitors and harming New Hampshire’s tourism economy. 3. Risks Reducing Available Housing Supply Rather than incentivizing property owners to keep homes available as rentals, the tax may push some owners to sell their second homes or leave them vacant indefinitely to avoid the tax burden — which has the opposite effect of the bill’s intent. New Hampshire already faces housing supply challenges, and reducing rental inventory could make housing availability worse, not better. I strongly urge the committee to reconsider HB 1707 in its current form. A more balanced approach should be explored that supports affordable home ownership without disproportionately penalizing responsible homeowners whose rental properties benefit local communities and economies. Thank you for your time, consideration, and service. Liam O'Brien