HB 723-FN-LOCAL - AS INTRODUCED
2003 SESSION
06/09
HOUSE BILL 723-FN-LOCAL
COMMITTEE: Municipal and County Government
This bill amends the definition of "residence" in an industrial or commercial zone for appraisal purposes to include all properties used for residential purposes including multi-family properties.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-1091
06/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to the definition of residences in an industrial or commercial zone.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Appraisal of Taxable Property; Industrial or Commercial Zone; Residence; Definition Amended. Amend RSA 75:10, II to read as follows:
II. "Residence" means the real estate which a person owns and [occupies as the person's principal place of abode] which is used exclusively for one or more dwelling units, and for no other purpose, together with any land or buildings appurtenant thereto, including manufactured housing if used for such purpose. Residence shall include multi-family housing.
2 Effective Date. This act shall take effect April 1, 2003.
LBAO
03-1091
Revised 3/11/03
HB 723 FISCAL NOTE
AN ACT relative to the definition of residences in an industrial or commercial zone.
FISCAL IMPACT:
The New Hampshire Municipal Association and Department of Revenue Administration state this bill may have an indeterminable fiscal impact on state, county, and local revenue and expenditures in FY 2004 and each year thereafter.
METHODOLOGY:
The Association states this bill changes the definition of residence from a principal place of abode to virtually any dwelling unit. At the present time, residences that are in an industrial or commercial zone that are owned and occupied as a person's principal place of abode, can be assessed as a residence, rather than as a commercial or industrial property. With the proposed change in this bill, even a multi-unit apartment complex could be assessed as a residence, rather than as a commercial property, even if it is clear the use of property is a commercial one. To the extent that assessors could no longer assess such property as commercial property, it could lower the overall property valuation in a community and could result in an increase in property taxes.
The Department of Revenue Administration states under current law, the fair market value of the property is used for property taxation purposes. Market value ties back to sales, and thus closes the administrative loop. The proposed language would change the current valuation to a calculated amount. This would make the change more difficult to administer, as the valuation would not directly relate to sales. This would mean that the valuation of this type of property would compare to other residential property not necessarily in a commercial/industrial zone. The Department cannot estimate the fiscal impact at this time.