HB 1261-FN-A-LOCAL - AS INTRODUCED
2000 SESSION
HOUSE BILL 1261-FN-A-LOCAL
AN ACT replacing the excavation tax and excavation activity tax with an excavation yield tax.
This bill establishes an excavation tax assessed as a yield tax, replacing the current excavation tax and excavation activity tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2104
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT replacing the excavation tax and excavation activity tax with an excavation yield tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Excavation Tax. Amend the chapter heading of RSA 72-B to read as follows:
EXCAVATION TAX [AND EXCAVATION ACTIVITY TAX]
2 Application of Excavation Tax. Amend RSA 72-B:1 to read as follows:
72-B:1 Excavation Tax[; Excavation Activity Tax].
I. Earth and excavations[, as defined in this chapter,] shall be exempt from taxation as real property under RSA 72:6 and RSA 72:13, provided that such earth and excavations are subject to the excavation tax [or the excavation activity tax] as provided in this chapter.
II. Earth, as defined in RSA 155-E:1, I, shall be exempt from taxation as real property under RSA 72:6 and RSA 72:13. An excavation tax shall be assessed upon the excavation of earth against an owner as defined in RSA 72-B:2, VIII. Such tax shall be assessed at the rate of [$.02 per cubic yard of earth] 10 percent of the value of the sand, gravel, rock, soil, or construction aggregate excavated, at the time of excavation.
III. [Excavations, as defined in RSA 155-E:1, II, shall be exempt from taxation as real property under RSA 72:6 and RSA 72:13, but shall be subject to the excavation activity tax. The owner of real property containing any excavation shall have assessed against such property an excavation activity tax. The excavation activity tax shall be assessed pursuant to RSA 72-B:12, and shall be assessed at a tax rate equal to the real property tax rate imposed under RSA 72:6. The excavation activity tax for those excavations occurring on public lands shall be assessed to the owner or purchaser of the excavation rights.
IV.] The following, except as otherwise noted, shall not be subject to the [excavation activity tax, the] excavation tax[,] and related fees; however, the following shall be subject to taxation as real property pursuant to RSA 72:6 independent of any earth contained therein:
(a) [An excavation that has been reclaimed and approved by the regulator to be in compliance with local reclamation standards and ordinances.
(b) An excavation area that is exposed rock ledge not subject to reclamation under RSA 155-E:5, I and III or RSA 155-E:5-a and has not been excavated during the preceding tax year.
(c) An excavation that has ceased commercially useful operation prior to August 24, 1977, as set forth in RSA 155-E:2, II(c).
(d) Permitted areas, or areas not requiring permits, that have not been excavated and remain undisturbed.
(e) Areas that are ancillary to the excavation.
(f)] Any excavation of earth from a parcel of land that is put back on the parcel, or other parcel that is contiguous and in common ownership, in the construction, reclamation, reconstruction, or alteration of such parcel of land within the same tax year.
[(g)](b) Any excavation of earth that is used exclusively for agricultural or forest management by the owner of the land within the state of New Hampshire.
[(h)](c) Any excavation upon a parcel of land which does not exceed 1,000 cubic yards within any tax year[; however, the owner of such excavation shall be subject to the excavation activity tax, shall be required to file a notice of intent to excavate pursuant to RSA 72-B:8, but such owner shall not be subject to the enforcement fee under RSA 72-B:16 and such parcel shall not be subject to the excavation tax lien under RSA 72-B:7, I].
[(i)](d) Any excavation which is solely necessary to construct a foundation, septic disposal system, or which is incidental to other construction projects and does not result in the removal from the parcel of more than 1,000 cubic yards of earth within the tax year.
3 Assessment of the Excavation Tax. Amend the section heading of RSA 72-B:4 to read as follows:
72-B:4 Assessment of the Excavation Tax [and the Excavation Activity Tax].
4 Bond; Reference Removed. Amend RSA 72-B:5, I to read as follows:
I. If an owner does not own land in the town where such owner intends to excavate and has filed an intent to excavate form with respect to any parcel of land, the assessing officials shall, within 30 days of the receipt of that filing, notify the owner in writing of the amount and conditions of any bond or other security deemed necessary to secure the payment of the excavation tax to be due from the operation described in the notice of intent to excavate. The owner shall provide the bond within 30 days of notice or be guilty of a misdemeanor. No owner who owns land in the town where the owner intends to excavate shall be required to post a bond or other security as a condition for filing an intent to excavate or receiving a permit to excavate, unless the owner is delinquent on town timber taxes[, excavation activity taxes, or property taxes].
5 Liens. Amend RSA 72-B:7, III to read as follows:
III. Liens created under RSA 72-B:7, I [and II] shall continue for a period of 18 months following the date of assessment by the local assessing officials. All excavation tax [and excavation activity tax] assessments shall be subject to statutory collection proceedings against real estate as prescribed by RSA 80.
6 Disposition of Tax. Amend RSA 72-B:11 to read as follows:
72-B:11 Disposition of the Excavation Tax [and Excavation Activity Tax].
I. The excavation tax[, and the excavation activity tax,] collected in the incorporated towns and cities under RSA 72-B:4 shall be paid by the tax collectors into their respective treasuries for the general use of the city or town.
II. The taxes assessed under RSA 72-B:4 in any unincorporated place shall be collected by the county commissioners of the county in which the place is located and paid by them to the county treasurer. The county commissioners shall have the same powers in collecting the taxes as provided under RSA 80 and RSA 81. All taxes collected by the counties under RSA 72-B:4 shall be credited to the unincorporated place from which the excavation tax [and the excavation activity tax] was collected and shall be used against the unincorporated place's share for the county tax for the ensuing year.
7 Repeal. The following are repealed:
I. RSA 72-B:2, I, relative to the definition of ancillary to the excavation.
II. RSA 72-B:4, II, relative to assessment of the excavation activity tax.
III. RSA 72-B:5, II, relative to bond requirements for the excavation activity tax.
IV. RSA 72-B:7, II relative to liens for the excavation activity tax.
V. RSA 72-B:12 and 12-a, relative to administration, appeal, and abatement of the excavation activity tax.
8 Effective Date. This act shall take effect April 1, 2000.
LBAO
00-2104
12/6/99
HB 1261-FN-A-LOCAL - FISCAL NOTE
AN ACT replacing the excavation tax and excavation activity tax with an excavation yield tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will have an indeterminable impact on local revenue in FY 2000 and each year thereafter. There is no impact on state and county revenue or state, county and local expenditures.
METHODOLOGY:
The Department could not determine the local revenue fiscal impact of changing the excavation tax from $.02 per cubic yard to 10% of the value of the earth excavated. The Department states that since the value of earth varies statewide, dependent on the quality of the material and current demand, the 10% tax on the earth value could not be estimated. Therefor, the fiscal impact of changing the excavation tax could not be determined.