HB 0741

HB 741-FN - AS INTRODUCED

AN ACT relative to an education property tax cap for retired residents.

SPONSORS: Rep. Giuda, Graf 13; Rep. Tahir, Hills 50; Rep. Weyler, Rock 79; Rep. Gilman, Graf 9; Sen. Boyce, Dist 4

This bill establishes an education property tax cap for certain retired residents.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to an education property tax cap for retired residents.

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

1 Education Property Tax; Reference to Cap for Retired Residents. Amend RSA 76:3 to read as follows:

76:3 Education Property Tax. 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 and except as provided in RSA 76:3-a.

2 New Section; Education Property Tax; Income-based Cap for Retired Residents. Amend RSA 76 by inserting after section 3 the following new section:

(1) Has filed a claim for the income-based cap with the department under this section; and

(2) During the year preceding the year in which the person files a claim for the cap under this section has had an ownership interest in a homestead and was domiciled in the homestead upon which education property tax accrued; and

(B) Retired and is of at least the mandatory retirement age for his or her occupation or profession; or

(4) Has an annual household income of less than $18,000 for a single person or $24,000 for married persons.

(b) "Commissioner" means the commissioner of the department of revenue administration.

(e)(1) "Homestead" means the dwelling owned by a claimant which is used as the claimant's principal place of residence for not less than 240 days in a calendar year and includes the following:

(B) Visual and ordinary appurtenant structures such as but not limited to garages, wood sheds, barns, and other outbuildings;

(D) Land contiguous to such dwelling and appurtenant structures that is groomed and maintained around them; and

(E) Land necessary to the support and service of the dwelling such as but not limited to driveways and maintained rights-of-way for purposes of ingress and egress to the dwelling.

(2) A homestead may consist of a part of a multi-unit dwelling and its proportionate share of the land upon which it stands and other ordinary appurtenant common facilities.

(3) In this paragraph the term "owned" includes a vendee in possession under a land contract and one or more joint tenants or tenants in common.

(4) "Homestead" shall not include personal property such as furniture, furnishings or appliances, or structures.

(f) "Household income" means any and all income received by a household, including disability income, social security income, and other sources of income which are nontaxable under the United States Internal Revenue Code. "Household income" shall also include all income of any trust through which the claimant holds equitable title, or the beneficial interest for life, in the homestead.

(3) A person who has equitable title, or the beneficial interest for life in the homestead.

(h) "United States Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended.

II. Any claimant may file a claim on or before March 1 of each year with the department to have his or her education property tax payment on a homestead capped at the amount which such person paid in the year of his or her retirement. The right to file a claim under this section shall be personal to the claimant. The right to file a claim under this section shall survive the claimant's death to the extent that this right may be exercised on behalf of a claimant by a legal guardian, attorney, spouse, or another person who could have qualified as the claimant had the decedent not filed.

III. The commissioner of revenue administration shall make available suitable forms with instructions for claimants. Such forms may require claimants to provide all information reasonably necessary to determining the accuracy of claims, including, but not limited to, education property tax accrued, changes of homestead, household membership, household income, size and nature of property claimed as the homestead, and a statement that the education property tax has been or will be paid by the claimant. Along with the form, the claimant shall submit:

(b) Proof of medical disability retirement or retirement from full-time employment.

(d) A copy of the page of the prior year's federal income tax return which shows adjusted gross income.

IV. The adjusted gross income data provided under subparagraph III(d) shall be used for no other purpose than determining the accuracy of claims under this section.

V. The commissioner shall adopt rules, pursuant to RSA 541-A, necessary for qualification and implementation of the education property tax income-based cap for retired residents.

VI. The commissioner shall, beginning in 2004, adjust the income amounts in paragraph I(a)(4) to reflect the rate of inflation in accordance with the Consumer Price Index-Northeast.

3 Applicability. Any person who reached 65 years of age in 1999, 2000, 2001, or 2002, and who qualifies as a claimant under the provisions of RSA 76:3-a, as inserted by section 2 of this act, may opt to have his or her education property tax payment capped at either the amount such person paid in the year such person reached 65 years of age or in the year such person first files a claim under RSA 76:3-a.

AN ACT relative to an education property tax cap for retired residents.

The Department of Revenue Administration indicates this bill will have an indeterminable impact on state education trust fund expenditures in FY 2004 and each year thereafter. There will be no fiscal impact on state, county and local revenue or county and local expenditures.

The Department states this bill cannot be administered because it is missing many necessary provisions, for example, there is no method to cap the statewide education property tax, and the Department is not given authority to refund the tax.