hb 0212

CHAPTER 171

HB 212-FN - FINAL VERSION

AN ACT providing an alternative method of calculating state education property tax hardship relief and authorizing the commissioner of the department of revenue administration to establish certain positions.

SPONSORS: Rep. Cox, Rock 24; Rep. Langley, Rock 24; Rep. Alger, Graf 9; Rep. Leone, Sull 2; Rep. Shultis, Rock 33

This bill provides an alternative method of calculating state education property tax hardship relief for the property tax year beginning April 1, 2001.

The bill also authorizes the commissioner of the department of revenue administration to establish positions necessary to implement the low and moderate income homeowners property tax relief program under RSA 198:56-61.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

171:1 Purpose. The purpose of this act is to provide an alternative method for the calculation of state education property tax hardship relief grants for eligible claimants in municipalities for which 1998 is no longer an accurate benchmark year for determining increases in state education property taxes in certain towns because of property revaluations. This act is intended to be effective only for the property tax year beginning April 1, 2001.

I. For the property tax year beginning April 1, 2001, the following calculation shall be used instead of the calculation provided in RSA 198:50-55 except where this calculation results in a reduced amount of tax relief. Alternative hardship relief amounts shall be determined for those municipalities that pay excess state education property taxes to the state and which have undergone a recent revaluation which renders the local assessed valuations from the 1998 property tax bills inaccurate as a benchmark for determining state education property tax relief.

III. Pursuant to this act, eligible claimants shall be granted education property tax hardship relief for the property tax year beginning April 1, 2001.

(a) Owns a homestead or interest in a homestead subject to the education property tax;

(b) Resided in such homestead for a period of one year as of November 3, 1999, except such persons as are on active duty in the United States armed forces or are temporarily away from such homestead but maintain the homestead as a primary domicile;

(c) Realizes in the property tax year beginning April 1, 2001 a net increase in property taxes, exclusive of municipal and county taxes, arising from the payment of excess education property tax to the state; and

(d) Realizes total household income of $25,000 or less if a single person and $50,000 or less if a married person or head of a New Hampshire household.

V. A portion of the net increase in an eligible hardship relief claimant's property taxes, exclusive of municipal and county taxes, shall be rebated as follows:

(a) Using the excess education property tax as the numerator and the state education warrant as the denominator to determine a state education property tax ratio;

(b) Multiply the education property tax ratio, determined under subparagraph (a), by the state education property tax rate as shown on the local tax bill. This shall represent the local rate increase;

(c) The total amount of tax relief allowable shall not exceed the amount the claimant would receive with respect to a homestead with a local maximum homestead value of $200,000 in that municipality for tax year 2001. This amount shall be determined by creating a local value fraction with $6.60 as the denominator and the state education property tax rate as it appears on the local tax bill in the municipality as the numerator. The local maximum homestead value is the local value fraction times $200,000 rounded to the next highest $1,000;

(d) Multiply the value of the property as shown on the April 2001 tax bill or the amount determined in subparagraph (c), whichever is less, by the local rate increase computed in subparagraph (b) to determine the base amount of the hardship relief; and

(e) Multiply the base amount of hardship relief determined in subparagraph (d) by the percentages provided in RSA 198:51, IV(c).

VI. If a homestead is owned by 2 or more persons as joint tenants or tenants in common, and one or more of such joint owners do not principally reside at such homestead, hardship relief applies to the proportionate share of the homestead value that reflects the ownership percentage of the claimant. Only one claim may be filed for a single homestead.

VII. Claims filed with the department of revenue administration shall be filed between May 15, 2002 and June 30, 2002.

VIII. Each claim shall be accompanied by copies of the claimant's 1998 and 2001 property tax bills for the homestead and by a copy of the claimant's 2000 federal income tax return. Claimants who were not required to file a federal income tax return for the 2000 tax year may submit an affidavit to such effect in lieu of a tax return, which document shall include the claimant's social security number. A claimant who asserts ownership in a homestead because he or she holds equitable title, or the beneficial interest for life, in the homestead shall also submit a copy of the document creating such interest and a copy of the federal tax return, if any, for the 2000 tax year, of the trust holding legal title to the homestead. Any documents submitted shall be considered confidential, and protected under RSA 21-J:14.

IX. The provisions of RSA 359-C shall not apply to the documents required to be submitted under this act.

X. The department of revenue administration may adjust the hardship relief amount of any claimant who qualifies for relief under this act and has already filed under the provisions of RSA 198:50-55 for the property tax year beginning April 1, 2001, but only if such adjustment will increase the claimant's, otherwise correct, relief amount by $5 or more.

XI. The provisions of RSA 198:53 and RSA 198:54, relative to penalties for fraudulent filings and appeals to the board of tax and land appeals shall apply to claimants filing under this act. Rules adopted by the commissioner of the department of revenue administration relative to the administration and enforcement of the hardship relief program under RSA 198:50-55 shall, where pertinent, also apply to the administration and enforcement of this act.

171:3 Authority to Establish Positions. The commissioner of the department of revenue administration is authorized to establish positions necessary to implement the low and moderate income homeowners property tax relief program under RSA 198:56-61.