HB 1358-FN-LOCAL - AS INTRODUCED
2001 SESSION
09/10
HOUSE BILL 1358-FN-LOCAL
This bill directs the commissioner of revenue administration to choose a year prior to 1999 and use the valuations of property for that year for purposes of assessing the education property tax, until such time as the commissioner certifies that all municipalities in the state have completed a revaluation more recently than 1990. For the years following the year of certification, the values of property shall be frozen for 5-year periods for purposes of assessing the education property 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01-2099
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand One
AN ACT relative to valuation of property for purposes of assessing the education property tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education Property Tax; Valuations of Property. Amend RSA 76:3 to read as follows:
76:3 Education Property Tax.
I. An annual education property tax at the uniform rate of $5.80 on each $1000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.
II. Notwithstanding the provisions of paragraph I, RSA 76:8, and RSA 21-J:3, XIII, until all municipalities in the state have completed revaluations of property more recently than 1990, the department of revenue administration shall assess the education property tax on the values of properties in a year prior to 1999. The year to be used for assessment purposes shall be chosen by the commissioner of revenue administration and shall be used by the department of revenue administration until the date on which the commissioner certifies to the secretary of state that all revaluations by municipalities have been completed. For the years following the year of certification, the values of property shall be frozen for 5-year periods for purposes of assessing the education property tax.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
01-2099
Revised 11/21/01
HB 1358 FISCAL NOTE
AN ACT relative to valuation of property for purposes of assessing the education property tax.
FISCAL IMPACT:
The Department of Revenue Administration states they are unable to determine the fiscal impact of this bill on state and local revenue or state expenditures. The Municipal Association indicates this bill will increase local expenditures by an indeterminable amount in FY 2002 and each year thereafter. There will be no fiscal impact on county revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill cannot be administered as written because the phrases "completed a revaluation" and "valuations of property" are not defined within the bill. Locally assessed valuations, modified locally assessed valuations, or equalized assessed valuations could be used resulting in different revenue impacts.
The Municipal Association indicates this bill will result in an indeterminable increase in expenditures for municipalities because they will have to use two different property valuations on each tax bill. This could not be done without significant computer programming, either to issue a separate tax bill or change the method of calculation on a single tax bill. This cost could be incurred again when, under the terms of this bill, the property tax base reverts to the current valuation.