SB 0183

SB 183-FN-A-LOCAL - AS AMENDED BY THE SENATE

AN ACT relative to distribution of certain meals and rooms tax revenue to municipalities with affordable housing.

SPONSORS: Sen. Larsen, Dist 15; Sen. Hollingworth, Dist 23; Sen. McCarley, Dist 6; Sen. Cohen, Dist 24; Rep. Konys, Hills 33; Rep. Potter, Merr 24; Rep. Buckley, Hills 44; Rep. Seldin, Merr 17

This bill allows for distribution of certain meals and rooms tax revenue to municipalities which meet certain threshold requirements for affordable housing.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to distribution of certain meals and rooms tax revenue to municipalities with affordable housing.

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

1 Distribution of Meals and Rooms Tax Revenue to Cities and Towns Based on Affordable Housing. Amend RSA 78-A:26, II to read as follows:

II. For fiscal year 1995, instead of the 40 percent distribution in subparagraph I(b), 75 percent of each city's or town's 1976 distribution under RSA 78-A:23 shall be distributed under the provisions of subparagraph I(b), plus an amount equal to 75 percent of any increase in the revenue received from the meals and rooms tax for the fiscal year ending on the preceding June 30, not to exceed $2,000,000. For fiscal year 1996, the amount to be distributed shall be equal to the prior year's distribution, plus an amount equal to 75 percent of any increase in the revenue received from the meals and rooms tax for the fiscal year ending on the preceding June 30, not to exceed $3,000,000. For fiscal year 1997 and each year thereafter, the amount to be distributed shall be equal to the prior year's distribution plus an amount equal to 75 percent of any increase in the income received from the meals and rooms tax for the fiscal year ending on the preceding June 30, not to exceed $5,000,000, until such time as the total amount distributed annually is equal to the amount indicated in subparagraph I(b). For fiscal year 2003 and each year thereafter through fiscal year 2006, the amount which is equal to 75 percent of the increase over the prior fiscal year's meals and rooms tax revenue, not to exceed $5,000,000, shall be distributed based on the schedule for distribution established by the housing finance authority under RSA 204-C:88.

2 New Paragraph; Notice to Municipalities. Amend RSA 78-A:26 by inserting after paragraph III the following new paragraph:

IV. Within 90 days of the effective date of this paragraph, the state treasurer shall send written notice to the governing body of each municipality in the state containing the following information:

(a) That beginning with fiscal year 2003 through fiscal year 2006, increases in the share of the meals and rooms tax revenues that is distributed to cities and towns shall, pursuant to RSA 204-C:88, be distributed to municipalities based on the addition of new housing units which are state or federally assisted housing or manufactured housing, based on the most recent available data from the office of state planning and the New Hampshire housing finance authority.

(b) That any municipal official may contact the housing finance authority to determine:

(1) Whether the municipality will be eligible for a share of the increased rooms and meals tax revenues; and

(2) The number of additional manufactured housing units or units of state or federally assisted housing for which the municipality is projected to be eligible to receive an incentive payment in the next fiscal year.

(c) That unexpired building permits issued by the municipality for state or federally assisted housing or manufactured housing may be submitted to the housing finance authority for recalculation of eligibility pursuant to RSA 204-C:88.

3 New Subdivision; Housing Finance Authority; Distribution of Meals and Rooms Tax Revenue. Amend RSA 204-C by inserting after section 86 the following new subdivision:

I. "State or federally assisted housing" means rental housing developed for occupancy by low and moderate income families or individuals for which the owner has received a grant, loan, tax credit, or other financial subsidy from an agency or instrumentality of the state or federal government. The authority shall by August 1 of each year publish a list of housing developments qualifying under this definition and shall rely on this list in making the calculation required under RSA 204-C:88, II. Rental units in which the sole form of assistance is a portable tenant based rent subsidy, including but not limited to the federal Section 8 housing choice voucher program, shall not constitute state or federally assisted housing as used in this subdivision.

III. "Eligible units" means the total of state or federally assisted housing and manufactured housing.

204-C:88 Distribution Schedule for Meals and Rooms Tax Revenue. On or before October 1 of each year, the authority shall establish a schedule for distribution of the amount which is equal to 75 percent of the increase over the prior fiscal year's meals and rooms tax revenue to towns and cities under RSA 78-A:26, II, but not exceeding $5,000,000, and shall report this schedule to the state treasurer with certification as to its correctness. The authority shall establish this schedule in the following manner:

I. Towns and cities qualifying for a share of the distribution shall be each town or city in which eligible units were created as determined by the authority or in which building permits were issued for manufactured housing units during the previous fiscal year.

II. The authority shall allocate the funds available under RSA 78-A:26, II by dividing the total funds available by the total number of eligible units and allocating such amount or $2,500; whichever is less, for each eligible unit. The total amount distributed to all eligible cities and towns in any one year shall not exceed $5,000,000. If the total amount allocated does not equal $5,000,000, any unexpended amount shall be distributed in the following year using the distribution formula in RSA 78-A:26.

III. The number of housing units used by the authority in establishing this distribution schedule shall be based on the latest statistics furnished by the office of state planning.

IV. Any building permits which a town has issued for state or federally assisted housing or manufactured housing, which have not expired, shall be counted as a housing unit for the purpose of making the calculation required by paragraphs I and II of this section, upon the provision of satisfactory proof of the issuance of such permits and the type of unit permitted, to the authority.

V. The authority shall, by July 1 of each year, publish a list which specifies the number of eligible units for which each town and city is projected to be eligible for an incentive fee payment. The list shall include at least one eligible unit for each town or city. The number of eligible units shall be derived by calculating the percent of the state's total housing units in each town or city and applying that percentage to the total eligible units which may receive an incentive payment based on the total funds available for a fiscal year divided by $2,500.

4 Repeal. RSA 204-C:87-88, relative to distribution of meals and rooms tax revenue, is repealed.

AN ACT relative to distribution of certain meals and rooms tax revenue to municipalities with affordable housing.

The Department of Revenue and the New Hampshire Housing Authority indicate that this bill, as amended by the Senate, will have no fiscal impact on state, county and local revenues or expenditures.

The Department and Authority state this bill will change the distribution of funds among municipalities, but the total dollars given to municipalities will remain the same.