HB 641-FN – AS INTRODUCED
2005 SESSION
10/09
HOUSE BILL 641-FN
AN ACT establishing a statewide homestead exemption against property taxes for seniors.
SPONSORS: Rep. Dickinson, Carr 1; Rep. C. Brown, Carr 1; Rep. Merrow, Carr 3; Rep. Knox, Carr 4; Sen. Johnson, Dist 2; Sen. Gallus, Dist 1
COMMITTEE: Municipal and County Government
This bill establishes a statewide homestead exemption for residential property of persons 65 years of age and older.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0535
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT establishing a statewide homestead exemption against property taxes for seniors.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Statewide Elderly Homestead Exemption. Amend RSA 72 by inserting after section 72 the following new subdivision:
Statewide Elderly Homestead Exemption
72:73 Statewide Elderly Homestead Exemption.
I. Each person owning residential property in this state for at least 10 years as his or her principal place of residence and who is 65 years of age or older, shall be granted an exemption against the assessed value of the person’s residence in the amount of $50,000 or 1/2 of the equalized assessed value, whichever is less. Only one exemption may granted for each homestead.
II. For purposes of this section:
(a) “Residence” means the housing unit, and related structures such as an unattached garage or woodshed, which is the person’s principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. “Residence” shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.
(b) Ownership requirements for a homestead exemption shall be that the property is:
(1) Owned by the resident;
(2) Owned by a resident jointly or in common with the resident’s spouse, either of whom meets the age requirement for the exemption;
(3) Owned by a resident jointly or in common with a person not the resident’s spouse, if the resident meets the applicable age requirement for the exemption; or
(4) Owned by a resident, or the resident’s spouse, either of whom meets the age requirement for the exemption, and when they have been married to each other for at least 5 consecutive years.
III. Procedures for application, investigation of applications, and appeals shall be as provided in RSA 72:33, RSA 72:34, and RSA 72:34-a.
2 Interpretation by Commissioner of Revenue Administration. Amend RSA 72:36, I to read as follows:
I. The commissioner’s interpretation of RSA 72:28, RSA 72:29, RSA 72:29-a, RSA 72:30, RSA 72:31, RSA 72:32, RSA 72:33, RSA 72:33-a, RSA 72:34, RSA 72:34-a, RSA 72:35, [and] RSA 72:36-a, and RSA 72:73; and
3 Effective Date. This act shall take effect April 1, 2005.
LBAO
05-0535
Revised 2/9/05
HB 641 FISCAL NOTE
AN ACT establishing a statewide homestead exemption against property taxes for seniors.
FISCAL IMPACT:
The NH Municipal Association and Department of Revenue Administration have determined this bill will have an indeterminable impact on state restricted education trust fund expenditures and local revenue and expenditures in FY 2005 and each year thereafter. There will be no fiscal impact on state and county revenue or county expenditures.
METHODOLOGY:
The NH Municipal Association states this bill will grant a statewide homestead exemption of $50,000 or half of the assessed value, whichever is less, against assessed value for any resident who is 65 years of age or older and has owned residential property in NH for at least 10 years as his or her principal place of residence. This bill requires local assessing officials to process and investigate applications for the exemption. This will result in an increase in personnel expenditures for many municipalities. The NH Municipal Association states the amount is indeterminable because they do not know how many applications for exemption will be received, and personnel costs for assessing officials vary among municipalities.
The NH Municipal Association and Department of Revenue Administration state this bill will not increase or decrease total local property tax revenue, but will shift the property tax burden within municipalities to those under 65 and those over 65 who do not qualify for the exemption.
The Department of Revenue Administration indicates this bill exempts $50,000 of assessed value from taxation under RSA 76:3, the statewide property tax. Since the amount collected by the state is an amount set by statute, the amount collected will remain the same. However, this bill exempts $50,000 of assessed value from the equalized valuation calculation, and since that measure is used in the computation of the state’s cost of an adequate education, and is calculated on a town by town basis, this bill will change the amount a town receives in grants and pays in statewide property tax. The Department cannot estimate the amount of the changes.