HB 1626

HB 1626-FN - AS INTRODUCED

AN ACT establishing a program to rebate certain excessive property tax payments of eligible taxpayers.

SPONSORS: Rep. Sapareto, Rock. 13; Rep. Bradley, Carr 8; Rep. Torr, Straf 12; Rep. Chandler, Carr 1; Sen. Klemm, Dist 22; Sen. Johnson, Dist. 3; Sen. Russman, Dist 19

This bill establishes a program for the rebate of excessive education property tax payments made by eligible taxpayers in the state.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT establishing a program to rebate certain excessive property tax payments of eligible taxpayers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Subdivision; Education Property Tax Relief. Amend RSA 198 by inserting after section 55 the following new subdivision:

(1) Has filed a claim with a municipality for reduction in such claimant's property taxes under this subdivision; and

(2) During the 3 fiscal years preceding the year in which the person files a claim for relief under this chapter:

(A) Has had an ownership interest in a homestead and was domiciled in the homestead upon which education property taxes have accrued and for which the person is making a claim for tax relief from education property taxes in this state; and

(B) Was not a full-time student claimed as a dependent by any taxpayer under the United States Internal Revenue Code; and

(3) Did not during the prior federal income tax year, pay the alternative minimum tax.

(3) A person who has equitable title, or the beneficial interest for life in the homestead.

II. "Commissioner" means the commissioner of the department of revenue administration.

IV. "Education property taxes" means the sum of the statewide education property tax under RSA 76:3 and the education portion of property taxes assessed by a municipality.

V. "Equalized assessed value" or "equalized assessed valuation" means the modified assessed valuation of property equalized by the commissioner pursuant to RSA 21-J:3, XIII. In this paragraph, "modified assessed valuation" means the sum of the assessments of taxable property in a municipality less the statutory exemptions provided in RSA 72:12-a, 72:12-b, 72:37, 72:39-a, and 72:39-b. "Modified assessed valuation" shall not include optional exemptions provided in RSA 72:37-b, 72:62, 72:66, and 72:70.

(1) The product of the state education rate determined by the commissioner pursuant to RSA 76:3 multiplied by the equalized value of qualifying homesteads not exceeding $100,000 and exclusive of special assessments not including current use, delinquent interest and charges for service, levied as of April 1 on a claimant's homestead in this state; and

(2) The amount of the education portion of property taxes assessed by the claimant's municipality levied as of April 1 on a claimant's homestead in this state; which is in excess of 10 percent of a claimant's household income for the calendar year preceding the tax year of the excessive education property tax claim.

(b) In this paragraph, "equalized assessed value of qualifying homesteads" means the local assessed value of the homestead equalized by applying the equalization ratio for the municipality, as determined by the commissioner pursuant to RSA 21-J:3, XIII, for the year of the claim.

(c) A qualifying homestead is the first $100,000 of equalized value of a homestead. If a homestead is owned by 2 or more persons or entities as joint tenants or tenants in common, and one or more persons or entities are not members of the claimant's household, "excessive education property taxes" applies to that part of statewide education property taxes levied on the homestead which reflects the ownership percentage of the claimant and the claimant's household. If a homestead is an integral part of a larger unit such as a multi-dwelling building, the statewide education property taxes shall be that percentage of the total education property taxes accrued as the total inhabitable area of the claimant's dwelling is of the total inhabitable area of the building. For purposes of this paragraph "unit" refers to the parcel of property covered by a single tax statement of which the homestead is a part.

VII.(a) "Homestead" means the dwelling owned by a claimant which is used as the claimant's principal place of residence for not less than 240 days in a calendar year and includes the following:

(2) Visual and ordinary appurtenant structures such as but not limited to garages, wood sheds, barns, and other out buildings;

(4) Land contiguous to such dwelling and appurtenant structures that is groomed and maintained around them; and

(5) Land necessary to the support and service of the dwelling such as but not limited to driveways and maintained rights-of-way for purposes of ingress and egress to the dwelling.

(b) A homestead may consist of a part of a multi-unit dwelling and its proportionate share of the land upon which it stands and other ordinary appurtenant common facilities.

(c) In this paragraph the term "owned" includes a vendee in possession under a land contract and one or more joint tenants or tenants in common.

(d) "Homestead" shall not include personal property such as furniture, furnishings or appliances, or structures.

VIII. "Household income" means any and all income received by a household, including disability income, social security income, and other sources of income which are nontaxable under the United States Internal Revenue Code. "Household income" shall also include all income of any trust through which the claimant holds equitable title, or the beneficial interest for life, in the homestead.

XI. "Tax collector" means the appointed or elected collector of taxes for a municipality.

XII. "United States Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended, without the rules, regulations, forms, and procedures of the United States Internal Revenue Service. The rules, regulations, forms and procedures of the United States Internal Revenue Service may, however, be used by the commissioner of revenue administration in formulating rules for adoption under RSA 541-A. This definition shall be operative unless and until a specific statutory exception to its adoption is provided in this subdivision, or until the application of one of its provisions is held to violate the New Hampshire constitution.

I.(a) A claimant shall be entitled to make claim to the taxing municipality for statewide education property tax relief equal to the excessive education property taxes levied under RSA 76:3 on the first $100,000 of equalized valuation of the claimants homestead. Such claims shall not exceed $2,250 per claimant during any calendar year. A claimant shall not be entitled to any statewide education property tax relief if there are no excessive education property taxes or for any excessive education property taxes which accrued prior to January 1 of the preceding calendar year.

(b) No claim with respect to relief by a claimant under this subdivision shall be allowed unless the claim is filed with the municipality by March 1 following the date of notice of tax as defined in RSA 72:1-d. The municipality shall include all necessary forms for filing as provided by the department in the first bill.

II. No interest shall be allowed on any relief to which a claimant may be entitled under this subdivision.

198:58 Rebate to Claimant. Within 30 days of receipt of a claim, the municipality shall reduce the claimant's tax bill by the qualifying excessive education property taxes. Where more than one tax bill is issued by the municipality, the excessive education property taxes shall be divided proportionally between the bills. Timely payment to the municipality of net taxes by the claimant is not required to receive the tax reduction under this subdivision.

198:59 Reports of Claims. Municipalities shall report to the department by April 1 of each year on the total amount of rebates made under RSA 198:58. By April 15 of each year, the department shall report to the state treasurer the total amount of rebates made by each municipality under RSA 198:58.

198:60 Reimbursement to Municipalities for Claims. Within 30 days of receipt of the report by the department required under RSA 198:59, the state treasurer shall reimburse municipalities for the total of qualified claims received under RSA 198:58. Such payments shall be charged against the education trust fund established in RSA 198:39.

198:61 One Claimant Per Household. Only one claimant per household per year shall be entitled to relief under this subdivision.

198:62 Claim is Personal. The right to file a claim under this subdivision shall be personal to the claimant. The right to file a claim under this subdivision shall survive the claimant's death to the extent that this right may be exercised on behalf of a claimant by a legal guardian, attorney, spouse, or another person who could have qualified as the claimant had the decedent not filed.

II. The department shall adopt rules, pursuant to RSA 541-A, necessary to administer and enforce this subdivision.

I. The commissioner of revenue administration shall make available to municipalities suitable forms with instructions for claimants. Such forms may require claimants to provide all information reasonably necessary to determining the accuracy of claims, including, but not limited to, property taxes accrued, changes of homestead, household membership, household income, size and nature of property claimed as the homestead, and a statement that the property taxes have been or will be paid by the claimant.

I. If a municipality has reason to suspect the accuracy of a claim, the municipality may request that the department verify the household income of the claimant.

II. Upon receipt of such income verification from the department, the municipality may redetermine the claim and assess and collect, in the same manner as provided for property taxes under RSA 80, any amount of such claim in excess of the predetermined amount.

198:66 Fraudulent Claims; Penalty. A person shall be guilty of a class A misdemeanor who:

II. With fraudulent intent, assisted in the preparation or filing of the fraudulent claim or supplied information upon which the fraudulent claim was prepared.

198:67 Appeals. Any person aggrieved by the denial in whole or in part of a claim under this subdivision, except when the denial is based upon late filing of claim, may appeal the denial to the board of tax and land appeals or to the superior court in the county in which the person resides by filing a petition within 30 days after such denial. Procedures for an appeal of a denial of a claim shall be the same as the procedures for an appeal of a denial of an abatement of property tax under RSA 76:16-a-76:17.

198:68 Claim Applied Against Outstanding Liabilities. The amount of any claim otherwise payable under this subdivision may be applied by the municipality against any liability outstanding against the claimant or against anyone who was a member of the household in the taxable year to which the claim relates.

3 Education Trust Fund; Purpose; Property Tax Relief Added. Amend RSA 198:39, I to read as follows:

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities' school districts pursuant to RSA 198:42, and to provide education property tax [~~hardship~~] relief under RSA [~~198:55~~] 198:56-68. The state treasurer shall deposit into this fund immediately upon receipt:

I. There is established a tax equity and efficiency commission to study issues relating to tax fairness, proportionality, efficiency and complexity for funding public education, [~~and~~] to examine all taxes currently imposed on the citizens of New Hampshire to fund public education, and to review the provisions for [~~hardship~~] education property tax relief to determine whether the program should continue and to recommend parameters for its continuation if so determined.

5 Effective Date of Hardship Relief Repeals Amended. Amend 1999, 338:25, II too read as follows:

AN ACT establishing a program to rebate certain excessive property tax payments of eligible taxpayers.

The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from an agency.