HB 696-FN-LOCAL - AS INTRODUCED
1999 SESSION
HOUSE BILL 696-FN-LOCAL
AN ACT relative to the taxation of land held by municipalities for water supply purposes.
SPONSORS: Rep. Patten, Carr 9; Rep. Fraser, Merr 21
COMMITTEE: Municipal and County Government
This bill provides that land located in one municipality and held by another municipality for water supply purposes shall be taxable. The amount of tax shall be pursuant to an agreement between the municipalities, subject to certain units.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
99-0192
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord One Thousand Nine Hundred and Ninety-Nine
AN ACT relative to the taxation of land held by municipalities for water supply purposes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Legislative Intent. The general court believes that water is our most precious resource, and that it is imperative for it to be available to all citizens at reasonable cost. Since sufficient water resources are not available to all municipalities, provision must be made both for sharing present supplies fairly and for prudent protection of future water sources. Therefore, the general court intends to make inter-municipal agreements about the taxation of land held by municipalities for water supply as equitable as possible.
2 Property Taxable; Exemption for Water Works Removed. Amend RSA 72:11 and 11-a to read as follows:
72:11 [Water Works;] Flood Control. Property held by a city, town or district in another city or town for the purpose of [a water supply or] flood control, if yielding no rent, shall not be liable to taxation therein, but the city, town or district so holding it shall annually pay to the city or town in which such property lies an amount equal to that which such place would receive for taxes upon the average of the assessed value of such land, without buildings or other structures, for the 3 years last preceding legal process to acquire the same, or other acquisition thereof, the valuation for each year being reduced by all abatements thereon; but any part of such land or buildings from which any revenue in the nature of rent is received shall be subject to taxation; such payments shall be paid to the collector of taxes of the town or city in which such property lies upon notification [from him], and such payment shall be made on or before December 1 in each year; provided, however, that after such acquisition the valuation thus established shall be subject to change, as to make such value proportional with the assessed value of other property in the town which is subject to taxation, so that such payment will not exceed its proportion of the public charge in that year. Any city or town aggrieved by the payment in lieu of taxes on such property shall have the same right of appeal as a taxpayer may have.
72:11-a [Water Works,] Flood Control, Additional Provisions. When a city, town or district has acquired, or acquires property in another city or town for the purpose of [water supply or] flood control which for any reason has been exempt from taxation, such property, if yielding no rent, shall not be liable to taxation therein but the city, town or district so holding it shall annually pay to the city or town in which such property lies a sum equal to that which such place would receive from taxes from such land, without buildings or structures thereon, as determined by the commissioner of revenue administration. Such payments shall be made as provided in RSA 72:11.
3 Government Property Tax Exemption; Reference Added. Amend RSA 72:23, I(a) to read as follows:
I.(a) Lands and the buildings and structures thereon and therein and the personal property owned by the state, cities, towns, school districts, and village districts unless said real or personal property is used or occupied by other than the state or a city, town, school district or village district under a lease or other agreement the terms of which provide for the payment of properly assessed real and personal property taxes by the party using or occupying said property, and except as provided for in RSA 72-C. The exemption provided herein shall apply to any and all taxes against lands and the buildings and structures thereon and therein and the personal property owned by the state, cities, towns, school districts, and village districts, which have or may have accrued since March 31, 1975, and to any and all future taxes which, but for the exemption provided herein, would accrue against lands and buildings and structures thereon and therein and the personal property owned by the state, cities, towns, school districts, and village districts.
4 New Chapter; Taxation of Land Held for Water Supply Purposes. Amend RSA by inserting after chapter 72-B the following new chapter:
CHAPTER 72-C
TAXATION OF LAND HELD FOR WATER SUPPLY PURPOSES
72-C:1 Definitions. In this chapter:
I. "Municipality" means any city, town, or village district in the state of New Hampshire.
II. "Rent" means any regular revenue derived from use of the land, or a portion of the land, not related to water supply.
III. "Water supply" means a source of water in actual use, in storage, in the process of being diverted to use, or designated for proved necessary future use in a master plan by the purchasing town, city, or district.
72-C:2 Payment of Taxes.
I. Property acquired or held by a municipality in another municipality for the purpose of a water supply shall be taxable in the city or town in which the property lies. The municipality owning or holding such property shall annually be assessed by the city or town in which such property lies an amount of property taxes as follows:
(a) For the first tax year in which this chapter applies to a property held for the purpose of a water supply, the full tax rate shall be applied to 85 percent of the assessed value of the property.
(b) For any subsequent tax year, the full tax rate shall be applied to 85 percent of assessed value or to the percentage of assessed value of the property as determined in an agreement between the governing bodies of the municipalities, provided that no agreement may reduce the percentage to less than 45 percent of assessed value. Any such agreement shall continue as effective until amended by mutual agreement of the governing bodies.
II. Any part of such land or buildings from which any revenue in the nature of rent is received shall be subject to full property taxation.
III. Payments of taxes shall be made to the tax collector of the town or city in which such property lies upon notification from the collector. Payment shall be made on or before December 1 in each year.
IV. After acquisition by the municipality the valuation of the property shall be subject to change to make such value proportional to the assessed value of other property in the town or city which is subject to taxation so that such payment will not exceed its proportion of the public charge in that year. Any municipality aggrieved by the payment of taxes on such property shall have the right of appeal to the board of tax and land appeals or to the supreme court.
72-C:3 Changes of Use. If a municipality owning or holding property in another municipality for water supply discontinues the use of that property for water supply without demonstrating that the discontinuance is a predetermined part of its master plan, and that the property will be returned to that use according to the same plan, the municipality shall negotiate its payment of taxes for that property within 90 days of such discontinuance.
5 Definition; Open Space Land. Amend RSA 79-A:2, IX to read as follows:
IX. "Open space land" means any or all farm land, forest land, or unproductive land as defined by this section. However, "open space land" shall not include any property held by a city, town or district in another city or town for the purpose of [a water supply or] flood control, for which a payment in [place] lieu of taxes is made in accordance with RSA [72-B:11] 72:11.
6 Applicability. Nothing in this act shall affect agreements between municipalities for payments in lieu of taxes for property owned or held for water supply purposes in existence on the effective date of this act. This act shall apply, upon the termination of agreements for payments in lieu of taxes, to all new agreements entered into on and after the effective date of this act.
7 Effective Date. This act shall take effect April 1, 1999.
LBAO
99-0192
2/22/99
HB 696-FN-LOCAL - FISCAL NOTE
AN ACT relative to the taxation of land held by municipalities for water supply purposes.
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from an agency.