Liam O'Brien

Dear Chair and Members of the House Ways and Means Committee, I am writing to respectfully oppose HB 1580, which would impose a new annual surcharge on non-primary residences in New Hampshire. Under the bill’s provisions, residential properties not used as a primary residence — including many second homes — would be subject to an additional tax based on assessed value beginning in 2027. While I appreciate the intent to ensure fairness in our tax system, this proposal would disproportionately hurt responsible homeowners who use their second homes as rental properties and would have several unintended negative consequences: 1. Punishes Legitimate Rental Property Owners Many homeowners purchase second homes with the intent of responsibly renting them — whether short-term or long-term — to help cover expenses including mortgage payments, property taxes, and maintenance. Imposing an extra surcharge simply because a property is not the owner’s primary residence would effectively penalize those providing legal rental housing that supports local economies. 2. Reduces Housing Supply for Visitors and Seasonal Workers Short-term and seasonal rentals fill a vital gap in housing availability in many parts of New Hampshire, especially in tourism-driven communities. These rentals not only accommodate visitors but also seasonal workers who support hospitality and service industries. A surcharge on non-primary residences could cause property owners to pull homes out of the rental market, thereby shrinking housing options and pushing prices higher for both visitors and workers. 4. Risks Lower Property Values and Owner Exit from Market By making ownership of non-primary residences considerably more expensive, HB 1580 may encourage owners to sell or withdraw properties from the local market altogether. This would reduce the overall housing stock available for legal rentals, again counteracting any intended goals of improving housing affordability. I urge the committee to reconsider HB 1580 in its current form. Policies that aim to support housing affordability should be carefully crafted to avoid unintended penalties on responsible property owners who contribute to our communities through legal rental activity and economic participation. Thank you for your time, consideration, and service. Liam O'Brien