HB 1240

HB 1240 - AS INTRODUCED

AN ACT establishing a property tax limitation and credit for elderly persons and increasing the amount of the homestead right for elderly persons.

SPONSORS: Rep. Emerson, Ches 13; Rep. Dickinson, Carr 2; Rep. Pilliod, Belk 3

This bill establishes a tax limitation and tax credit against property taxes assessed on the qualifying property of persons at least 62 years of age. The bill also increases the amount of the homestead right under RSA 480.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT establishing a property tax limitation and credit for elderly persons and increasing the amount of the homestead right for elderly persons.

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

1 Property Taxation; Application for Tax Credit; Reference Added. Amend the introductory paragraph of RSA 72:33, I to read as follows:

I. Except as provided in RSA 72:33-b, no person shall be entitled to the exemptions, deferrals, or tax credits provided by RSA 72:28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-b, 62, 66, and 70 unless the person has filed with the selectmen or assessors, by March 1 following the date of notice of tax under RSA 72:1-d, a permanent application therefor, signed under penalty of perjury, on a form approved and provided by the commissioner of revenue administration, showing that the applicant is the true and lawful owner of the property on which the exemption, deferral, or tax credit is claimed and that the applicant was duly qualified upon April 1 of the year in which the exemption, deferral, or tax credit is first claimed, or, in the case of financial qualifications, that the applicant is duly qualified at the time of application. The form shall include the following and such other information deemed necessary by the commissioner:

2 Property Taxation; Appeal; Reference Added. Amend RSA 72:34-a to read as follows:

72:34-a Appeal From Refusal to Grant Exemption, Deferral, or Tax Credit. Whenever the selectmen or assessors refuse to grant an applicant an exemption, deferral, or tax credit to which the applicant may be entitled under the provisions of RSA 72:23, 23-d, 23-e, 23-f, 23-g, 23-h, 23-i, 23-j, 23-k, 28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-b, 41, 42, 62, 66, or 70 the applicant may appeal in writing, on or before September 1 following the date of notice of tax under RSA 72:1-d, to the board of tax and land appeals or the superior court, which may order an exemption, deferral, or tax credit, or an abatement if a tax has been assessed.

3 New Section; Tax Limitation and Credit for Homestead of Elderly Persons. Amend RSA 72 by inserting after section 38-a the following new section:

I. Any person who is at least 62 years of age shall be granted a credit against the property taxes assessed each year on his or her residential real estate equal to the amount necessary to reduce the person's property tax liability to no greater than the dollar amount of the person's tax liability on his or her residential real estate as it was determined and assessed on the April 1 immediately following the person's birthday in the year of first application, provided the person is at least 62 years of age. For residential real estate owned by the spouse of an eligible person, the credit shall be allowed if they have been married for at least 5 years. The term "residential real estate" as used in this section shall mean the same as defined in RSA 72:29. All applications made under this section shall be subject to the provisions of RSA 72:33 and RSA 72:34.

II. The credit in paragraph I may be applied only to property which is occupied as the principal place of abode by the eligible person. The credit may be applied to any land or buildings appurtenant to the residence or to manufactured housing if that is the principal place of abode.

III. If a person receiving a credit under this paragraph makes substantial improvements to a qualified residence which is reflected by an increase in the assessed value of the property, amount of the tax credit shall be reduced to reflect the property owner's tax liability on the increase in the assessed value which shall be in the same proportion as that current tax liability bears to the current tax rate multiplied by the full assessed value.

IV. Any person qualifying for the tax limitation and credit under this section shall be immediately eligible for the tax relief provided by this section if the qualifying person sells and acquires a new principal place of residence wherever located in this state. Such person shall be required to submit an application for such relief. The tax limitation and amount of the tax credit in such case shall be either the amount determined in paragraph I or the amount of the qualifying person's property tax liability in the year of first application at the prior principal place of residence wherever located in this state.

4 Homesteads; Amount Increased for Persons Over 62 Years of Age. Amend RSA 480:1 to read as follows:

480:1 Amount. Every person is entitled to $50,000 worth of his or her homestead, or of his or her interest therein, as a homestead. Upon achieving the age of 62 years a person shall be entitled to $100,000 worth of his or her homestead, or of his or her interest therein, as a homestead. The homestead right created by this chapter shall exist in manufactured housing, as defined by RSA 674:31, which is owned and occupied as a dwelling by the same person but shall not exist in the land upon which the manufactured housing is situated if that land is not also owned by the owner of the manufactured housing.