CHAPTER 84
SB 76-LOCAL - FINAL VERSION
5/13/99 1040s
6jan00.....2026h
30march00.....3539h
2000 SESSION
SENATE BILL 76-LOCAL
AN ACT establishing a pilot program allowing certain economically depressed municipalities to offer tax exemptions to foster public accommodation and industrial construction.
SPONSORS: Sen. F. King, Dist 1; Sen. Russman, Dist 19; Sen. Hollingworth, Dist 23; Sen. Blaisdell, Dist 10; Sen. Disnard, Dist 8; Sen. J. King, Dist 18; Sen. Johnson, Dist 3; Sen. Gordon, Dist 2; Rep. P. Davis, Coos 1; Rep. L. Pratt, Coos 4; Rep. Mears, Coos 7
This bill establishes a pilot program allowing economically depressed municipalities in economically depressed counties to offer tax exemptions applicable to non-statewide property taxes to foster growth in new and existing public accommodation and industrial construction.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
5/13/99 1040s
6jan00.....2026h
30march00.....3539h
99-0982
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT establishing a pilot program allowing certain economically depressed municipalities to offer tax exemptions to foster public accommodation and industrial construction.
Be it Enacted by the Senate and House of Representatives in General Court convened:
84:1 Statement of Intent. It is the purpose of this act to foster the economic development of economically depressed counties by enabling eligible, economically depressed municipalities to encourage new construction, rehabilitation, and improvement of property for public accommodation and industrial use through the adoption of tax exemptions. It is the further purpose of this act to ensure that, once adopted, such exemptions shall be administered uniformly within the taxing districts so as to avoid the risk of unconstitutional ad hoc or discriminatory tax benefits.
84:2 Definitions. In this act:
I. "Economically depressed county" shall mean any county of the state which meets the following 3 criteria as established by the director of the office of state planning:
(a) Is within the lowest 30 percent of counties based on equalized taxable valuation per person for the most recent year available prior to the vote taken pursuant to section 4 of this act;
(b) Is within the highest 30 percent of counties based on unemployment rate for the average of the 3 most recent years available prior to the vote taken pursuant to section 4 of this act; and
(c) Is within the lowest 30 percent of counties based on population growth for the most recent 5-year period available prior to the vote taken pursuant to section 4 of this act.
II. "Eligible municipality" shall mean any city or town located in an economically depressed county and which meets 2 of the following 3 criteria as established by the director of the office of state planning:
(a) Is within the lowest 30 percent of municipalities based on equalized taxable valuation per person for the most recent year available prior to the vote taken pursuant to section 4 of this act;
(b) Is within the highest 30 percent of municipalities based on unemployment rate for the average of the 3 most recent years available prior to the vote taken pursuant to section 4 of this act;
(c) Is within the lowest 30 percent of municipalities based on population growth for the most recent 5-year period available prior to the vote taken pursuant to section 4 of this act.
III. "Industrial uses" shall include all manufacturing, production, assembling, warehousing, or processing of goods or materials for sale or distribution, research and development activities, or processing of waste materials.
IV. "Public accommodation" shall mean any inn, hotel, motel, or other establishment which provides lodging to transient guests.
84:3 Property Tax Exemption. An eligible municipality may, by vote of the local legislative body pursuant to section 4 of this act, adopt a new construction property tax exemption for public accommodation or industrial uses, or both. The exemption shall apply only for local municipal and local school property taxes assessed by the municipality which shall exclude state education property taxes under RSA 76:3 and county taxes assessed against the municipality under RSA 29:11 and shall be a specified percentage on an annual basis of the increase in assessed value attributable to construction of new structures, and additions, renovations or improvements to existing structures. The exemption may run for a maximum period of 5 years following the new construction; provided, however, that the exemption for all years shall cumulatively not exceed 200 percent of the increased assessed value. Once adopted by the local legislative body, the percentage rate and duration of the exemption shall be granted uniformly within that municipality to all new construction for which a proper application is filed.
84:4 Procedure for Adoption. A municipality desiring to adopt the provisions of section 3 of this act shall do so in the following manner:
I. In a town which is an eligible municipality, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3, and shall be voted upon by official ballot if that town has adopted the official ballot for the election of officers. A public hearing shall be held at least 15 but not more than 60 days prior to the vote.
II. In a city which is an eligible municipality, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such city may vote to place the question on the official ballot for any regular municipal election.
III. The vote shall specify the percentage of new assessed value to be exempted, the number of years duration of the exemption following new construction, and a reference to zoning use category definitions, if applicable. The exemption shall take effect in the tax year beginning April 1 following its adoption.
IV. A vote adopting section 3 of this act shall remain in effect for a maximum of 2 tax years; provided, however, that for any application which has already been granted prior to expiration of such 2 tax-year period, the exemption shall continue to apply at the rate and for the duration in effect at the time it was granted.
84:5 Application for Exemption.
I. On or before March 1 following the date of notice of tax under RSA 72:1-d for any year for which the exemption is claimed, a person qualified for an exemption under section 3 of this act shall file an application with the selectmen or assessors, on an application form prepared by them, signed by the applicant under penalty of perjury, which contains adequate information to demonstrate that the applicant is qualified for the exemption.
II. The selectmen or assessors shall notify the applicant of their decision on or before July 1 following the date of notice of tax under RSA 72:1-d. The decision shall specify the amount of the exemption, that it is effective beginning the prior April 1, and the number of years for which the exemption applies to qualified construction. The decision of the selectmen or assessors may be appealed in the manner set forth in RSA 72:34-a.
III. An owner may apply for the exemption prior to construction, but in no case more than 12 months before the beginning of the tax year for which the exemption is sought. In such cases the selectmen or assessors may anticipatorily grant the exemption, subject to adjustment when the actual increase in assessed value becomes known. If construction is partially complete on April 1 of any year, the exemption for that year shall be based on the increased assessed value attributable to the partial construction, but the duration of the exemption shall be adjusted such that the cumulative amount of exemptions received, based on the construction as completed, is proportional to that received by other eligible properties.
IV. The selectmen or assessors may request such additional or updated information as is necessary to determine eligibility. If they are satisfied that the applicant has willfully made any false statement, or has refused to provide information after such a request, they may refuse to grant the exemption.
V. If the municipality completes a revaluation during the period for which an exemption has been granted, the amount of the exemption shall be adjusted by the difference in equalization ratios applicable in the municipality before and after the revaluation.
84:6 Repeal. Sections 1-5 of this act, relative to a program allowing economically depressed municipalities in economically depressed counties to offer tax exemptions to foster public accommodation and industrial construction, are repealed.
84:7 Effective Date.
I. Section 6 of this act shall take effect April 1, 2006.
II. The remainder of this act shall take effect April 1, 2001.
(Approved: April 21, 2000)
(Effective Date: I. Section 6 shall take effect April 1, 2006.
II. Remainder of act shall take effect April 1, 2001.)