HB 1403

STAFF\HB.dot

2001 SESSION

AN ACT relative to eligibility requirements for property tax credits for disabled veterans and veterans' surviving spouses.

SPONSORS: Rep. Sweeney, Hills 31; Rep. Heon, Straf 14; Rep. Dickinson, Carr 2; Rep. Gilmore, Straf 11; Rep. Clegg, Hills 23; Sen. Barnes, Dist 17; Sen. Hollingworth, Dist 23; Sen. D'Allesandro, Dist 20

This bill allows for prorated property tax credits for disabled veterans who have less than a total and permanent disability.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to eligibility requirements for property tax credits for disabled veterans and veterans' surviving spouses.

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

1 Property Taxes; Military Service; Disability Exemption. Amend RSA 72:35 to read as follows:

I. Any person who has been honorably discharged or an officer honorably separated from the military service of the United States and who:

(a) Has total and permanent service-connected disability, or who is a double amputee or paraplegic because of service-connected injury, or the surviving spouse of such a person, shall receive a yearly tax credit in the amount of $700 of property taxes on the person's residential property[.]; or

(b) Has service-connected disability at a rating which is less than total disability as determined by the United States Department of Veterans' Affairs, or an individual unemployability rating from service-connected disability as determined by the United States Department of Veterans' Affairs, or the surviving spouse of such a person, shall receive a yearly tax credit calculated as the greater of the disability rating percentage or the unemployability rating percentage multiplied by $700. Such prorated tax credit shall be for property taxes on the person's residential property.

II. The tax credit in paragraph I may be applied only to property which is occupied as the principal place of abode by the disabled person or the surviving spouse. The tax 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.(a) Any person applying for the tax credit granted in paragraph I shall furnish to the assessors or selectmen certification from the United States Department of Veterans' Affairs that the applicant either is rated totally and permanently disabled from service connection or has a disability rating or individual unemployability rating from service connected disability. The assessors or selectmen shall accept such certification as conclusive on the question of disability or unemployability unless they have specific contrary evidence and the applicant, or the applicant's representative, has had a reasonable opportunity to review and rebut that evidence. The applicant shall also be afforded a reasonable opportunity to submit additional evidence on the question of disability.

(b) Any decision to deny an application shall identify the evidence upon which the decision relied and shall be made within the time period provided by law.

(c) Any tax credit shall be divided evenly among the number of tax payments required annually by the town or city so that a portion of the tax credit shall apply to each tax payment to be made.

IV.(a) Upon its adoption by a city or town as provided in RSA 72:35-a, any person who has been honorably discharged or an officer honorably separated from the military service of the United States and who:

(1) Has total and permanent service-connected disability, or who is a double amputee or paraplegic because of service-connected injury, or the surviving spouse of such a person, shall receive a yearly tax credit in the amount of $1,400 of property taxes on the person's residential property[.]; or

(2) Has service-connected disability at a rating which is less than total disability as determined by the United States Department of Veterans' Affairs, or an individual unemployability rating from service-connected disability as determined by the United States Department of Veterans' Affairs, or the surviving spouse of such a person, shall receive a yearly tax credit calculated as of the greater of the disability rating percentage or the unemployability rating percentage multiplied by $1,400. Such prorated tax credit shall be for property taxes on the person's residential property.

(b) The tax credit in subparagraph (a) may be applied only to property which is occupied as the principal place of abode by the disabled person or the surviving spouse. The tax credit may be applied to the taxes due on any land or buildings appurtenant to the residence or to manufactured housing, if that is the principal place of abode.

(c) Applications for this credit shall be made in the manner prescribed by paragraph III. Any tax credit shall be divided evenly among the number of tax payments required annually by the town or city so that a portion of the tax credit shall apply to each tax payment to be made.

2 Property Taxes; Procedure for Adoption. Amend RSA 72:35-a, I (c) to read as follows:

(c) The wording of the question shall be: "Shall we adopt the provisions of RSA 72:35, IV for an optional tax credit on the taxes due on residential property for a service-connected total or partial disability? The maximum optional disability tax credit is $1,400, rather than $700."